STM · STMicroelectronics N.V.

STMicroelectronics delivered Q1 2026 results with net revenues of $3,095 million, a meaningful increase from $2,517 million in the year-ago quarter, reflecting strength across key segments. The Analog products, MEMS and Sensors (AM&S) segment led with $1,318 million in net revenues and $161 million operating income, bolstered by the $895 million acquisition of NXP's MEMS sensor business, which added $30 million in PPA effects (non-GAAP adjustment) and drove goodwill from $315 million at year-end 2025 to $707 million. The Microcontrollers, Digital ICs and RF products (MDRF) group contributed $1,384 million in revenues and $226 million operating income, while Power & Discrete (P&D) remained challenged at a $84 million operating loss. GAAP operating income reached $70 million versus $3 million last year, pressured by $71 million in impairment, restructuring charges, and other phase-out costs, plus $69 million unused capacity charges in the 'Others' category. Non-GAAP operating income adjusted to $171 million and diluted EPS to $0.13, providing a clearer view of underlying performance. Balance sheet remains solid with $4.57 billion total liquidity despite the acquisition cash outflow, yielding a $2.002 billion net financial position. Cash from operations was $534 million, but free cash flow swung negative to -$723 million due to the NXP deal and net capex of $362 million. Long-term debt rose to $2.25 billion, including $590 million from a new €500 million EIB credit line tranche. The company maintains committed undrawn facilities and targets carbon neutrality in scopes 1/2 emissions and 100% renewable electricity by 2027.