STMicroelectronics has reported first-quarter 2026 revenues of $3.10 billion, a 23% jump on the same period last year, as the global chipmaker rode rising demand in personal electronics and artificial intelligence infrastructure – though profitability remained under pressure from restructuring charges and the integration costs of a major acquisition.
Revenue beats guidance, but profits slip
Net revenues for the quarter ending 28th March came in slightly ahead of the midpoint of ST’s own guidance range, driven by stronger-than-expected performance in engaged customer programmes across personal electronics and what the company terms its Consumer Electronics and Computing Products segment. Year-over-year growth strips back slightly to 21.4% when the contribution of a freshly completed acquisition is excluded – still a robust figure for a sector navigating persistent macroeconomic uncertainty.
Despite the top-line strength, net income fell to $37 million from $56 million in the year-ago quarter. The headline figures were weighed down by $71 million in impairment and restructuring charges connected to a company-wide programme to reshape ST’s manufacturing footprint and cut costs. Strip those out alongside acquisition-related accounting effects, and non-GAAP net income climbs to $122 million – nearly double the prior-year comparable figure.
Acquisition of NXP’s MEMS business closes
A significant corporate event in the quarter was the February completion of ST’s acquisition of NXP’s MEMS sensor business, which had been announced in July 2025. The deal, focused on automotive safety sensors and industrial applications, added roughly $40 million to quarterly revenues and is intended to broaden ST’s global sensor capabilities.
AI infrastructure ambitions take centre stage
Perhaps the most forward-looking development disclosed alongside the results was an expanded strategic partnership with Amazon Web Services. Announced in February, the multi-year, multi-billion-dollar commercial engagement will see ST supply a broad range of semiconductor solutions to support AWS’s Cloud and AI data centre infrastructure.
President and CEO Jean-Marc Chery used the results announcement to set out ambitious targets on the back of this deal and others. “ST is now strategically positioned to capture upside from new AI-driven programmes,” he said, confirming expectations for data centre revenues to exceed $500 million in 2026 and surpass $1 billion in 2027.
Solid demand signals heading into Q2
Looking at segment performance, the Embedded Processing and RF & Optical Communications divisions delivered the strongest year-on-year growth at 31 and 34% respectively. The Power and Discrete segment was the weak spot, with revenues dipping nearly 2% and an operating loss widening to $84 million, reflecting ongoing pressure in that part of the market.
On inventory, days sales stood at 140 days at quarter-end – elevated historically but a meaningful improvement from the 167 days recorded a year ago, suggesting the distribution channel is in healthier shape.
For the second quarter, ST is guiding revenues of $3.45 billion at the midpoint, an 11.6% sequential increase, with gross margin expected to improve to around 34.8%. Management noted that the outlook does not factor in any further shifts in global trade tariffs beyond the current situation – a caveat that reflects the uncertain trade environment facing the entire semiconductor industry.
