The significant revenue and profit decline, coupled with substantial restructuring charges, suggests near-term headwinds. However, the strategic moves to acquire NXP's MEMS business and partner with AWS indicate a long-term focus on high-growth markets. Traders should monitor the execution of the cost-saving program and the integration of the NXP acquisition, as successful execution could drive a recovery in 2026.
Price Chart
Executive Summary
STMicroelectronics reported a challenging 2025 with an 11.1% revenue decline to $11.8 billion and a significant drop in net profit to $299 million, driven by a 24% decrease in Automotive revenues. The company initiated a major restructuring program, incurring $376 million in impairment and restructuring charges, to reshape its manufacturing footprint and reduce costs. Despite the downturn, the company closed the acquisition of NXP's MEMS business and announced a strategic collaboration with Amazon Web Services, positioning it for future growth in key areas like automotive, AI, and data centers.
Key Facts
- Net revenues decreased 11.1% to $11.8 billion in 2025, primarily due to a 24% decline in Automotive segment revenue.
- Net profit plummeted to $299 million ($0.33 EPS) from $1.987 billion ($2.19 EPS) in 2024.
- Operating margin fell sharply to 2.7% from 12.7% in the prior year.
- The company incurred $376 million in impairment, restructuring, and phase-out costs related to a manufacturing footprint reshaping program.
- STMicroelectronics closed the acquisition of NXP Semiconductors' MEMS sensor business for up to $950 million.
- The company announced a multi-billion dollar strategic collaboration with Amazon Web Services for cloud and AI data centers.
Financial Impact
The company's net profit decreased by $1.688 billion, and its operating margin contracted by 1,000 basis points.
Risk Factors
- Continued weakness in the automotive semiconductor market.
- Execution risk associated with the manufacturing footprint reshaping program.
- Integration risk of the NXP MEMS business acquisition.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0000932787-26-000017 |
| Document: 0000932787-26-000017-index-headers.html | 0000932787-26-000017 |
| Document: 0000932787-26-000017-index.html | 0000932787-26-000017 |
| Document: 0000932787-26-000017.txt | 0000932787-26-000017 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 2, 2026 21w ago | 6-K | $78.75 $78.73 | ▼ −0.03% | ▲ +0.67% | $48.21 (−38.78%) |
May 27, 2026 21w ago | 6-K | $66.60 $66.60 | · 0.00% | ▼ −0.55% | $48.21 (−27.61%) |
May 27, 2026 21w ago | 6-K | $66.60 $66.60 | · 0.00% | ▼ −0.55% | $48.21 (−27.61%) |
May 4, 2026 25w ago | 6-K | $56.72 $57.38 | ▲ +1.16% | ▼ −0.22% | $48.21 (−15.00%) |
Apr 23, 2026 26w ago | 6-K | $50.50 $51.17 | ▲ +1.33% | ▲ +0.54% | $48.21 (−4.53%) |
Mar 27, 2026 30w ago | 6-K | $32.76 $31.39 | ▼ −4.19% | ▼ −3.84% | $48.21 (+47.14%) |
Mar 26, 2026 30w ago | 6-K | $32.76 $31.39 | ▲ +4.19% | ▲ +3.84% | $48.21 (−47.14%) |
Feb 6, 2026 37w ago | Court Ruling | $31.97 $32.85 | ▲ +2.74% | ▲ +3.00% | $48.21 (+50.80%) |
Feb 3, 2026 38w ago | Court Ruling | $28.88 $28.54 | ▼ −1.21% | ▲ +0.04% | $48.21 (+66.90%) |
US Market Status
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