📰 STM: STMicro Q2 Revenue Jumps 26%, Raises Data Center Target to $1B+ in 2026

News: Dow Jones Newswires

Ticker: STM | Score: 9/10 | Sentiment: Positive

Summary (Wiseek AI)

STMicroelectronics delivered Q2 revenue of $3.49 billion, up 26% year-over-year and above the mid-point of its outlook, driven by strength in Automotive and CECP. Gross margin came in at 34.8%, in line with guidance, while non-U.S. GAAP operating income reached $269 million. The company raised its data center revenue ambition to above $1 billion in 2026 and well above $2 billion in 2027, citing strong AI-related demand and improved visibility. Q3 guidance calls for $3.70 billion in revenue and 37% gross margin, with Q4 expected to exceed $4 billion—implying second-half growth well above normal seasonality. This follows the June 2 announcement of a significantly raised data center target, now further increased, and the $1.5 billion convertible bond offering in June. The results and outlook confirm accelerating momentum in AI and satellite communication markets, with supply tightening in several product categories.

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