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Sep 27, 2025
STMicroelectronics Q3 2025 Earnings Report
STMicroelectronics reported Q3 2025 results with modest revenue decline year-over-year and margin pressure due to product mix and efficiency factors.
Key Takeaways
STMicroelectronics delivered Q3 2025 results with revenue slightly above guidance mid-point, EPS of $0.26, and a sequential improvement in operating performance. However, profitability was impacted by weaker gross margin from product mix and lower efficiency.
Net revenues reached $3.19 billion, slightly above guidance mid-point.
Gross margin declined to 33.2% due to product mix and lower efficiencies.
Book-to-bill ratio remained above 1, supported by Automotive and Industrial segments.
Non-GAAP EPS was $0.29, with net income of $267 million.
Revenue by Segment
Forward Guidance
ST expects Q4 2025 revenue of $3.28 billion and gross margin of 35.0% at the mid-point, with continued strength in Automotive and cautious optimism on sequential growth.
Positive Outlook
- Q4 revenue expected to grow 2.9% sequentially
- Gross margin projected to improve to 35.0%
- Automotive segment remains above parity in bookings
- Inventory days expected to normalize further
- Clear strategy to reshape cost base and boost cash flow
Challenges Ahead
- Q3 gross margin missed guidance mid-point
- Profitability pressured by weaker mix in Automotive/Industrial
- Free cash flow only marginally positive at $130M
- Power & Discrete segment reported operating loss
- Unused capacity charges remain a headwind for margins
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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