Slide 1: STMicroelectronics Q2 2026 Financial Results
STMicroelectronics Q2 2026 Financial Results July 23, 2026
Slide 2: Forward looking information
Forward looking information Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934
Slide 3: Highlights
Highlights • Net revenues of $3.49B increased 26.0% Y/Y and 12.7% Q/Q. Revenues came above the mid-point of our business outlook range, driven by higher revenues in CECP and Automotive. Q2 • Gross margin was 34.8% and non-U.S. GAAP* gross margin was 35.2%; both in line with the mid-point of our busi
Slide 4: Q2 2026 Revenues dynamic
Q2 2026 Revenues dynamic % by reportable segments % by end market RF Optical Communications (RFOC) Others Communications equipment & +32.0%Y/Y computer peripherals Analog products, +50%Y/Y +8.6%Q/Q MEMS and +13% Q/Q 0.1% Sensors (AM&S) 13% +26.0%Y/Y 18% Automotive +8.2% Q/Q +16%Y/Y 37% +14% Q/Q 41%
Slide 5: Q2 2026 Revenues
Q2 2026 Revenues % by shipment location % by region of origin % by customer type Americas Asia Distribution Top 10 14% Americas Pacific OEMs 33% 30% Asia 40% 43% 22% Pacific 64% EMEA 27% 27% Other EMEA OEMs 5
Slide 6: Q2 2026 Financial highlights
Q2 2026 Financial highlights Revenues = $3.49B Non-U.S. GAAP Operating Margin* = 7.7% 3.5 10% 3.0 5% +26.0% 2.5 Y/Y 2.0 0% Q225 Q126 Q226 Q225 Q126 Q226 Non-U.S. GAAP Gross Margin* = 35.2% Non-U.S. GAAP Net Income* = $291M 38% 300 36% 225 34% 150 32% 75 30% 0 Q225 Q126 Q226 Q225 Q126 Q226 *Non-U.S.
Slide 7: Q2 2026 Business dynamics: Automotive
Q2 2026 Business dynamics Automotive Automotive sensor business Awards for active safety applications and tire pressure monitoring Design wins across hybrid, electric, and conventional vehicles Onboard chargers, powertrain, and active suspension 7
Slide 8: Q2 2026 Business dynamics: Industrial
Q2 2026 Business dynamics Industrial Support for NVIDIA Halos for Robotics End-to-end functional safety system for industrial and humanoid robots 8
Slide 9: Q2 2026 Business dynamics: Personal electronics
Q2 2026 Business dynamics Personal electronics 9
Slide 10: Q2 2026 Business dynamics: Communications Equipment & Computer Peripherals
Q2 2026 Business dynamics Communications Equipment & Computer Peripherals Datacenter revenue LEO satellite business Above $1 billion for 2026 Addressable market to reach and well above $2 billion for 2027* ~$3 billion by 2030, about 4x vs 2025 ST targets well above $3 billion in cumulative revenue 2
Slide 11: Revenues
Revenues Q226 Revenues = $3.49B 4.50 Q226 revenues up 26.0% Y/Y • AM&S increased 26.0%, P&D 3.7%, EMP 35.5% and RFOC 32.0%. • By end market, Automotive Increased 16%, Industrial 34%, Personal 3.00 Electronics 20% and CECP 50%. • Revenues to OEMs and Distribution increased 23.3% and 33.1%, respective
Slide 12: Gross margin
Gross margin Q226 Gross Margin = 34.8% Q226 Non-U.S. GAAP* Gross Margin = 35.2% 40% 30% Q226 Gross Margin • Up 130 bps Y/Y, mainly due to lower unused capacity 20% charges and better product mix. • Up 100 bps Q/Q 10% • In line with the mid-point of ST’s guidance. 0% Q225 Q325 Q425 Q126 Q226 Q326E US
Slide 13: Net operating expenses
Net operating expenses* Q226 Net Operating Expenses = $970M Q226 Non-U.S. GAAP** Net Operating Expenses = $960M. 35% 1100 900 700 30% • Q226 Non-U.S. GAAP** net Opex at $960M (27.5% of 500 revenues). 300 25% • Q226 Non-U.S. GAAP** net Opex in line with expectations 100 given in April. -100 20% Q225
Slide 14: Q2 2026 Reportable segments results
Q2 2026 Reportable segments results Analog products, MEMS and Power and discrete products RF Optical Communications Embedded Processing (EMP) Sensors (AM&S) (P&D) (RFOC) Revenues = $1,426M Revenues = $464M Revenues = $1,147M Revenues = $445M Operating Margin = 10.1% Operating Margin = -21.4% Operati
Slide 15: Q2 2026 Financial flexibility
Q2 2026 Financial flexibility Net Cash From Operating Net Capex* = $409M Free Cash Flow* = $75M Activities = $502M 1,000 1,000 30% 250 Capex / sales (%) 800 800 50 25% 600 600 -150 20% 400 400 -350 15% 200 200 -550 0 0 10% -750 Q225 Q325 Q425 Q126 Q226 Q225 Q325 Q425 Q126 Q226 Q225 Q325 Q425 Q126**
Slide 16: Solid capital structure
Solid capital structure $6.03B $5.63B ST is in a very solid position from a capital, $4.57B liquidity and balance sheet perspective. $4.03B $2.96B $2.57B $2.67B ST credit rating is currently BBB+ with Negative $2.00B $2.01B Outlook from S&P and Baa1 with Stable Outlook from Moody’s. Q225* Q126* Q226
Slide 17: Q3 2026 Outlook
Q3 2026 Outlook Net Revenues Q326 outlook, at the mid-point, is for net revenues of $3.70B, increasing Y/Y by 16.2% and Q/Q by 6.2%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 37.0%, +/- 200 bps. The third quarter will close on September 26, 2026. This outlook is based
Slide 18: Takeaways
Takeaways In Q2 we saw demand further accelerating, strong bookings in all end-markets and improved visibility. Q3 revenues expected to continue to grow Q/Q and Y/Y; and gross margin to continue to improve. Personal Electronics seasonality this year is different vs previous years. Revenue growth for
Slide 19: Historical data
Historical data
Slide 20: Historical financial performance
Historical financial performance Effective Exchange Rate €/$ 1.06 1.09 1.14 1.14 1.11 1.16 1.16 U.S. GAAP Q125 Q225 Q325 Q425 FY25 Q126 Q226 US$M, except EPS Net Revenues 2,517 2,766 3,187 3,329 11,800 3,095 3,487 Gross Margin 33.4% 33.5% 33.2% 35.2% 33.9% 33.8% 34.8% Operating Income 3 (133) 180 12
Slide 21: Historical Revenues and Operating Margin by Product Groups and Reportable Segments
Historical Revenues and Operating Margin by Product Groups and Reportable Segments US$M Q125 Q225 Q325 Q425 FY25 Q126 Q226 Analog products, MEMS and Sensors (AM&S) 1,069 1,133 1,434 1,449 5,085 1,318 1,426 Revenue 7.7% 7.5% 15.4% 16.2% 12.3% 12.2% 10.1% Operating Margin Power and discrete products (
Slide 22: FY 2025 Reportable segment revenues by end market
FY 2025 Reportable segment revenues by end market Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) 7% 2% 8% 40% 41% 36% 55% Automotive 11% Industrial Personal electronics Communications equipment Embedded Processing (EMP) RF Optical Communications (RFOC) & computer peripher
Slide 23: Appendix
Appendix
Slide 24: Appendix
Appendix • Non-U.S. GAAP Gross Profit, Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net Income and Non-U.S. GAAP Diluted Earnings Per Share (non-U.S. GAAP measures): Operating income before impairment, restructuring charges and other related phase-out costs, and other certain items, is used by mana
Slide 25: Appendix
Appendix Net revenues of Others: include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment, restructuring charges and other related phase-out costs, manage
Slide 26: © STMicroelectronics - All rights reserved.
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