STMicroelectronics shares down 14% amid mixed future outlook📉

Shares of STMicroelectronics (STM.US) fell nearly 14% after the semiconductor manufacturer issued a weaker-than-expected revenue forecast for the fourth quarter of 2025. Despite a solid rebound in the third quarter, the outlook signals persistent challenges across key markets, particularly in the automotive and industrial sectors.

Third Quarter Results

Net revenue for the third quarter reached $3.19 billion, down 2% year-over-year, but up 15.2% quarter-over-quarter, exceeding market expectations.
Non-GAAP EPS declined 21.6% year-over-year to $0.29, yet jumped 383% from the previous quarter, indicating a strong sequential recovery.
The company reported a clear operating turnaround — from an operating loss of $133 million in Q2 to operating income of $180 million in Q3.

Segment Performance

Analog, MEMS & Sensors (AM&S) – revenue rose 7% YoY to $1.43 billion, mainly driven by the Imaging segment.
Microcontrollers, Digital ICs & RF (MDRF) – up 5.3% YoY to $1.32 billion, reflecting stable demand.
Power & Discrete (P&D) – down 34.3% YoY to $429 million, weighed by weakness in the industrial and power sectors.
The book-to-bill ratio indicates continued but moderating demand in automotive and industrial markets.

Outlook and Strategic Direction

STMicro expects full-year 2025 revenue of $11.75 billion, slightly below the analysts’ consensus of $11.79 billion.
For the fourth quarter, the company projects revenue of $3.28 billion, compared to market expectations of $3.38 billion.
CEO Jean-Marc Chery reaffirmed the company’s strategic priorities, which include:
- Accelerating innovation across key product lines,
- Restructuring manufacturing operations and optimizing costs to achieve targeted savings,
- Strengthening free cash flow generation.

STMicro’s focus on cost discipline and reduced capital spending reflects prudent management amid challenging market conditions but may also limit growth potential in 2025. Investors remain concerned that demand recovery in automotive and industrial segments could take longer than anticipated, explaining Thursday’s sharp share price decline.

Source: xStation5

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STMicroelectronics shares down 14% amid mixed future outlook📉

Third Quarter Results

Segment Performance

Outlook and Strategic Direction

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