ST Q3 Profit Nearly Doubles, Q4 Revenue Hits $4.15B

According to STMicroelectronics’ financial results released on October 29, 2026, the company reported stronger-than-expected third-quarter operating profit, supported by rising demand from artificial intelligence (AI) data centers and satellite operators, as well as a broader recovery across its key markets.

STMicroelectronics reported adjusted operating profit of $429 million for the third quarter, nearly doubling from the same period last year. The result also exceeded the $400.5 million forecast by analysts surveyed by the London Stock Exchange Group (LSEG).

Looking ahead, the semiconductor manufacturer expects fourth-quarter revenue to reach $4.15 billion, with a margin of plus or minus 3.5%. This represents an increase from the $3.76 billion recorded in the third quarter and is above the $4.10 billion estimated by LSEG analysts.

"With demand continuing to significantly exceed supply, we are expanding our production capacity in line with STMicroelectronics' strategic roadmap," said Jean-Marc Chery, CEO of STMicroelectronics, in the company's earnings statement.

STMicroelectronics manufactures a broad range of semiconductor products, including microcontrollers, sensors, and power semiconductors used in automotive systems, industrial equipment, and smartphones. The company attributed its stronger-than-expected performance primarily to increased sales of communication equipment, computer peripherals, and personal electronics.

The company had already indicated in July that fourth-quarter sales would exceed $4 billion. Chery noted that, alongside the cyclical recovery in the semiconductor industry, demand from AI data centers and emerging applications such as low-Earth-orbit (LEO) satellite communications are providing additional growth momentum.

STMicroelectronics' gross margin increased to 37.3% in the third quarter, compared with 33.2% a year earlier. The improvement was driven by a higher proportion of high-margin chips in its sales mix and lower costs associated with underutilized manufacturing capacity. The company expects its gross margin to rise further to approximately 39% in the fourth quarter.

Jefferies analysts noted in a preliminary report that STMicroelectronics' growth momentum could continue through 2027. Revenue from its data center business is expected to nearly double from 2026 to 2027, while gross margins could see more substantial improvement by the end of 2027.