STMicroelectronics Beats Q1 2026 Expectations with 23% Revenue Surge
STMicroelectronics posted Q1 2026 net revenues of $3.10B, up 23% YoY and beating midpoint guidance, driven by strong Personal Electronics, CECP programs, and NXP MEMS acquisition (~$40M contribution). Ex-NXP, growth still hit 21.4% YoY.
Key Financials (US GAAP):
- Gross margin: 33.8% (non-GAAP: 34.1%, ex-PPA) – above guidance midpoint via better mix, lower unused capacity.
- Operating income: $70M (2.3% margin); non-GAAP: $171M (5.5%).
- Net income: $37M ($0.04 EPS); non-GAAP: $122M ($0.13 EPS).
Segment Highlights:
| Segment | Revenue | YoY Growth | Notes |
| AM&S (Analog, MEMS, Sensors) | $1.32B | +23.2% | Imaging/MEMS lead; op. margin 12.2%. |
| P&D (Power/Discrete) | $389M | -1.8% | Losses widened to $84M. |
| EMP (Embedded Processing) | $975M | +31.3% | MCUs/Custom strong; 16.9% margin. |
| RFOC | $409M | +33.9% | 14.9% margin. |
CEO Jean-Marc Chery: “Q1 revenues ex-NXP topped midpoint… improving demand, strong bookings. Q2 outlook: $3.45B revenues (+11.6% QoQ), gross margin 34.8% (non-GAAP 35.2%). AI programs position us for >$500M datacenter rev in 2026, >$1B in 2027.”
- Net financial position: $2B strong.
- Recent wins: NXP MEMS close, AWS multi-billion AI collab. Q2 closes June 27.
STM shows resilience amid macro uncertainty, with AI tailwinds ahead. Excluding the ~$40 million from the NXP MEMS sensor acquisition, growth was still strong at 21.4% YoY. This beat the midpoint of their guidance, fueled by Personal Electronics, CECP programs, and better product mix.
Quick Comparison Table
| Metric | Q1 2026 | Q1 2025 | YoY Change |
| Net Revenues | $3.095B | $2.517B | +23.0% |
| Gross Margin (GAAP) | 33.8% | 33.4% | +40 bps |
| Non-GAAP Gross Margin | 34.1% | 33.4% | +70 bps |
| Operating Income (GAAP) | $70M | $3M | +2,327.6% |
The key growth drivers in STMicroelectronics’ Q1 2026 results were high-performing segments within the Microcontrollers, Digital ICs & RF (MDRF) Product Group and Analog, MEMS & Sensors (AM&S), alongside contributions from Personal Electronics and CECP (Communications Equipment & Computer Peripherals) programs.
Top Growth Segments
| Segment | Q1 2026 Revenue | YoY Growth | Key Drivers |
| Embedded Processing (EMP) | $975M | +31.3% | General Purpose MCUs and Custom Processing |
| RF & Optical Communications (RFOC) | $409M | +33.9% | Strong demand in RF/optical |
| Analog, MEMS & Sensors (AM&S) | $1.318B | +23.2% | Imaging, MEMS (boosted by NXP acquisition); op. profit up 95.8% to $161M |
- MDRF Group Total: $1.384B, +32.1% YoY – the standout performer.
CEO Jean-Marc Chery highlighted: Revenues ex-NXP topped guidance midpoint, “driven mainly by higher revenues in our engaged customer programs in Personal electronics and CECP.” Improving demand, strong bookings noted despite macro uncertainty.
Power & Discrete (P&D) lagged at -1.8% YoY. Overall, these segments fueled the 23% total revenue jump to $3.10B.
In summary, EMP, RFOC, and AM&S powered ST’s Q1 rebound, positioning for AI/datacenter upside.
The press release is available as a PDFÂ here.
