STMicroelectronics's Earnings Outlook
STMicroelectronics (NYSE:STM) is preparing to release its quarterly earnings on Thursday, 2026-01-29. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect STMicroelectronics to report an earnings per share (EPS) of $0.28.
Anticipation surrounds STMicroelectronics's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
During the last quarter, the company reported an EPS beat by $0.07, leading to a 1.58% drop in the share price on the subsequent day.
Here's a look at STMicroelectronics's past performance and the resulting price change:
| Quarter | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.22 | 0.10 | 0.18 | 0.35 |
| EPS Actual | 0.29 | 0.06 | 0.07 | 0.37 |
| Price Change % | -2.00 | -2.00 | 0.00 | 0.00 |
STMicroelectronics Share Price Analysis
Shares of STMicroelectronics were trading at $29.36 as of January 27. Over the last 52-week period, shares are up 32.35%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on STMicroelectronics
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on STMicroelectronics.
STMicroelectronics has received a total of 1 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $22.0, the consensus suggests a potential 25.07% downside.
Comparing Ratings Among Industry Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of ON Semiconductor, First Solar and Astera Labs, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for ON Semiconductor, with an average 1-year price target of $59.15, suggesting a potential 101.46% upside.
- Analysts currently favor an Buy trajectory for First Solar, with an average 1-year price target of $276.16, suggesting a potential 840.6% upside.
- Analysts currently favor an Outperform trajectory for Astera Labs, with an average 1-year price target of $206.0, suggesting a potential 601.63% upside.
Summary of Peers Analysis
The peer analysis summary offers a detailed examination of key metrics for ON Semiconductor, First Solar and Astera Labs, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| GLOBALFOUNDRIES | Neutral | -2.93% | $419M | 2.14% |
| ON Semiconductor | Neutral | -11.98% | $587.20M | 3.22% |
| First Solar | Buy | 79.67% | $610.75M | 5.19% |
| Astera Labs | Outperform | 103.89% | $175.81M | 7.57% |
Key Takeaway:
STMicroelectronics ranks in the middle among its peers for Consensus rating. It is at the bottom for Revenue Growth. It is at the top for Gross Profit. It is in the middle for Return on Equity.
Delving into STMicroelectronics's Background
A merger between Italian firm SGS Microelettronica and the nonmilitary business of Thomson Semiconducteurs in France formed STMicroelectronics in 1987. STMicroelectronics is a leader in a variety of semiconductor products, including analog chips, discrete power semiconductors, microcontrollers, and sensors. It is an especially prominent chip supplier to the industrial and automotive industries.
Financial Insights: STMicroelectronics
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: STMicroelectronics's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2025, the company experienced a revenue decline of approximately -1.97%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: STMicroelectronics's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 7.44%, the company may face hurdles in effective cost management.
Return on Equity (ROE): STMicroelectronics's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.33%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.95%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: STMicroelectronics's debt-to-equity ratio is below the industry average at 0.13, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for STMicroelectronics visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.