Overview
- STMicroelectronics, which reported stronger-than-expected first-quarter results Thursday, guided second-quarter revenue to about $3.45 billion, above analyst forecasts.
- First-quarter net revenue reached $3.10 billion versus $3.04 billion expected, with a 33.8% gross margin as bookings strengthened and distributor inventories returned to normal levels.
- Profitability remained mixed as adjusted earnings of 13 cents missed estimates and reported results reflected $71 million of impairment and restructuring charges tied to factory changes.
- The NXP MEMS sensor acquisition added to sales but drove an $895 million cash outflow, leaving free cash flow at negative $720 million for the quarter, though ST ended with $2.0 billion net cash and $4.57 billion in liquidity.
- Shares jumped as much as 10% to new highs after the outlook, as investors focused on growth drivers such as automotive microcontrollers, AI data centers, optical links for servers, and low‑Earth‑orbit systems, with management targeting gross margin improvement through 2026.