STMicroelectronics Reports Strong Q2 Earnings with Revenue Growth and Raised Data Center Outlook
STMicroelectronics reported second-quarter revenue of $3.49 billion, exceeding expectations due to strong demand across multiple sectors including AI data centers, optical connectivity, industrial applications, automotive, and communications. The company's gross margin was 34.8%, with non-U.S. GAAP diluted EPS at $0.31. Management raised its outlook for the data center segment, forecasting revenue above $1 billion in 2026 and potentially over $2 billion by 2027 due to strong adoption of high-speed optical technologies like 800G and silicon photonics. The company also provided updated guidance: third-quarter revenue is expected at around $3.7 billion with a gross margin near 37%, while fourth-quarter revenue could exceed $4 billion. STMicroelectronics reported positive free cash flow, reduced inventory days, and increased capital spending plans for growth areas such as cloud optical interconnects.
Tickers: $STM
Topics: AI data centers automotive industrial chips optical connectivity semiconductors