The mixed quarter (revenue beat, EPS miss) with strong YoY growth and raised datacenter outlook suggests a cautious bullish bias. Traders should watch for Q3 guidance execution and further margin improvement as unused capacity charges ease. The raised datacenter revenue target ($1B+ in 2026) is a key catalyst for the stock's medium-term trajectory.
Price Chart
Executive Summary
STMicroelectronics reported Q2 2026 GAAP EPS of $0.24 (non-GAAP $0.31) on revenue of $3.49B, beating the midpoint of its own guidance by 110bps. Revenue surged 26% YoY to $3.49B, driven by strong growth in Embedded Processing (+35.5%) and RF Optical (+32.0%), while GAAP EPS swung from a -$0.11 loss to a $0.24 profit. However, GAAP EPS of $0.24 missed the consensus estimate of $0.27 by 11.1%, and the company guided Q3 revenue of $3.70B (midpoint) and gross margin of 37.0%, signaling continued recovery but with margin pressure from unused capacity charges. The stock's reaction will hinge on the revenue beat and raised datacenter revenue ambition ($1B+ in 2026, $2B+ in 2027) versus the EPS miss and cautious margin outlook.
Key Financial Metrics
Key Facts
- Q2 2026 GAAP EPS $0.24 vs consensus $0.27 (miss of 11.1%)
- Q2 2026 revenue $3.49B vs consensus $3.47B (beat of 0.6%)
- Revenue grew 26.0% YoY to $3.49B
- Non-GAAP EPS $0.31, non-GAAP gross margin 35.2%
- Q3 2026 guidance: revenue $3.70B midpoint (+6.2% QoQ, +16.2% YoY), gross margin 37.0% midpoint
- Datacenter revenue ambition raised to >$1B in 2026 and >$2B in 2027
- Free cash flow positive at $75M vs -$152M a year ago
- Inventory days improved to 126 from 166 a year ago
Financial Impact
GAAP EPS miss of 11.1% on $0.24 vs $0.27 consensus; revenue beat of 0.6% on $3.49B vs $3.47B; Q3 guidance midpoint of $3.70B revenue and 37.0% gross margin
Risk Factors
- GAAP EPS miss of 11.1% vs consensus may pressure the stock near-term
- Gross margin of 34.8% (GAAP) remains below historical levels, with 70bps of unused capacity charges in Q3 guidance
- Global trade tariffs and macro uncertainty could impact demand and supply chain
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3331866 |
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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