Despite the GAAP EPS miss, strong Q2 guidance and 23% YoY revenue growth suggest underlying demand recovery. Monitor gross margin expansion and execution on manufacturing footprint restructuring. The stock may react positively to forward-looking signals if macro conditions stabilize.
Price Chart
Executive Summary
STMicroelectronics reported Q1 2026 revenue of $3.10 billion, up 23.0% YoY, but GAAP EPS of $0.04 missed consensus of $0.18 by 77.8%. The miss was driven by $101 million in impairment, restructuring, and PPA charges. Guidance for Q2 was strong, with expected revenue of $3.45 billion (+11.6% QoQ) and gross margin expansion to 34.8%.
Key Financial Metrics
Key Facts
- Q1 2026 revenue: $3.10 billion, up 23.0% YoY and above guidance midpoint
- GAAP EPS: $0.04, missing consensus of $0.18 by 77.8%
- Non-GAAP EPS: $0.13, beating prior quarter's $0.11 but below Q1 2025 consensus
- Q2 guidance: $3.45 billion revenue (+11.6% QoQ), gross margin ~34.8%
- $895 million cash outflow from acquisition of NXP’s MEMS sensor business
- Free cash flow: -$723 million, primarily due to acquisition payment
Financial Impact
EPS miss of $0.14 (77.8%) vs consensus; revenue in line with YoY growth but down 7.0% QoQ
Risk Factors
- Ongoing restructuring charges ($71 million in Q1) may continue to pressure near-term profitability
- Free cash flow remains negative due to acquisition and capex, limiting near-term capital return flexibility
- Macro uncertainty in semiconductors could impact Q2 outlook if demand softens
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3279560 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 4w ago | Press Release | $50.71 $53.36 | ▲ +5.23% | ▲ +5.56% | $56.74 (+11.88%) |
Aug 31, 2026 4w ago | 6-K | $50.14 $53.24 | ▲ +6.18% | ▲ +6.37% | $56.74 (+13.15%) |
Aug 25, 2026 5w ago | 6-K | $49.46 $51.63 | ▲ +4.39% | ▲ +3.15% | $56.74 (+14.71%) |
Aug 10, 2026 7w ago | 6-K | $54.35 $51.97 | ▼ −4.38% | ▼ −3.46% | $56.74 (+4.39%) |
Aug 4, 2026 8w ago | 6-K | $54.22 $49.40 | ▼ −8.89% | ▼ −7.65% | $56.74 (+4.64%) |
Jul 23, 2026 10w ago | 6-K | $53.49 $49.92 | ▼ −6.67% | ▼ −9.98% | $56.74 (+6.07%) |
Jul 23, 2026 10w ago | Press Release | $53.49 $49.92 | ▼ −6.67% | ▼ −9.98% | $56.74 (+6.07%) |
Jul 6, 2026 12w ago | 6-K | $71.39 $52.39 | ▼ −26.61% | ▼ −26.05% | $56.74 (−20.53%) |
Jul 3, 2026 13w ago | Press Release | $68.35 $53.06 | ▼ −22.37% | ▼ −21.96% | $56.74 (−16.99%) |
Jun 16, 2026 15w ago | 6-K | $73.36 $62.77 | ▼ −14.44% | ▼ −15.75% | $56.74 (−22.66%) |
US Market Status
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