STMicroelectronics (NYSE:STM) Shares Gap Down Following Weak Earnings

STMicroelectronics N.V. (NYSE:STM)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $30.33, but opened at $28.28. STMicroelectronics shares last traded at $27.7950, with a volume of 7,521,261 shares.

The semiconductor producer reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.16). STMicroelectronics had a return on equity of 2.70% and a net margin of 1.41%.The company had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.29 billion.

Trending Headlines about STMicroelectronics

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Company gave Q1 FY2026 revenue guidance above consensus (roughly $3.0–$3.1B vs. ~$2.9B consensus), which supports near-term top-line stability and helped limit the selloff. Article Title
• Positive Sentiment: Management said chip sales are improving with year-over-year growth in personal electronics, communications and industrial end markets — a demand signal investors can view as early recovery evidence. Article Title
• Neutral Sentiment: ST and NanoXplore secured space qualification for a European FPGA — a strategic technology win that diversifies long-term end markets but is unlikely to be a near-term revenue driver. Article Title
• Negative Sentiment: Q4 EPS materially missed expectations ($0.11 reported vs. $0.27 est.), signaling weaker profitability and raising concern on margin recovery. Revenue was roughly in line at $3.33B but couldn’t offset the profit miss. Article Title
• Negative Sentiment: Company reported significant impairment/restructuring charges (Q4 and FY items cited in the press release) and warned restructuring costs will continue to weigh on results — investors may be concerned about one-time and recurring cost pressure. Article Title
• Negative Sentiment: Some outlets flagged a swing to an operating loss or sequential revenue softness after adjusting for charges, which amplifies near-term uncertainty around profitability and margin recovery. Article Title

Analyst Ratings Changes

STM has been the topic of a number of analyst reports. Robert W. Baird set a $45.00 price objective on shares of STMicroelectronics in a research report on Friday, October 24th. Weiss Ratings restated a “sell (d+)” rating on shares of STMicroelectronics in a report on Wednesday, January 21st. TD Cowen reaffirmed a “hold” rating on shares of STMicroelectronics in a research report on Friday, October 24th. Susquehanna lifted their price objective on STMicroelectronics from $35.00 to $40.00 and gave the stock a “positive” rating in a research report on Wednesday, October 22nd. Finally, Mizuho set a $28.00 target price on STMicroelectronics in a research note on Friday, January 9th. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $31.19.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in STM. Calamos Advisors LLC purchased a new position in STMicroelectronics during the 3rd quarter valued at about $3,222,000. Hardman Johnston Global Advisors LLC bought a new position in shares of STMicroelectronics during the third quarter valued at approximately $10,924,000. Greenland Capital Management LP bought a new position in shares of STMicroelectronics during the second quarter valued at approximately $4,375,000. West Family Investments Inc. purchased a new position in shares of STMicroelectronics during the second quarter valued at approximately $391,000. Finally, JPMorgan Chase & Co. boosted its position in shares of STMicroelectronics by 6.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 3,349,547 shares of the semiconductor producer’s stock worth $101,860,000 after purchasing an additional 212,499 shares in the last quarter. Hedge funds and other institutional investors own 5.05% of the company’s stock.

STMicroelectronics Price Performance

The company has a current ratio of 3.22, a quick ratio of 2.28 and a debt-to-equity ratio of 0.11. The company has a market cap of $25.06 billion, a PE ratio of 155.04, a P/E/G ratio of 3.57 and a beta of 1.56. The firm has a 50 day moving average of $26.58 and a two-hundred day moving average of $26.69.

STMicroelectronics Company Profile

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST’s offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.