STMicroelectronics announced its financial results for the fourth quarter and full year 2025. Net revenue for the fourth quarter of 2025 was $3.33 billion, a 0.2% increase year-over-year; gross margin was 35.2%; and operating profit was $125 million. By segment, the Analog, Power & Discrete, MEMS & Sensors (APMS) products segment generated $1.861 billion in revenue, a 4.6% decrease year-over-year; while the MCU, Analog-Digital Integrated Circuits & Radio Frequency (MDRF) products segment generated $1.464 billion in revenue, a 7.0% increase year-over-year. STMicroelectronics' sales growth was driven by customers seeking chips for personal electronics, communication equipment, computer peripherals, and industrial machinery. However, it's worth noting that semiconductor demand in the automotive industry is still struggling to recover. CEO Jean-Marc Chery stated that demand in the automotive industry remains below expectations.
For the full year 2025, STMicroelectronics' revenue was $11.8 billion, an 11.1% decrease; gross margin was 33.9%; operating profit was $175 million; and net profit was $166 million. The company expects net revenue of $3.04 billion for the first quarter of 2026, a decrease of 8.7% sequentially, plus or minus 350 basis points; gross margin is expected to be 33.7%, plus or minus 200 basis points. Revenue for the next quarter is expected to be approximately $3.04 billion, higher than $2.52 billion in the same period last year. The strong performance outlook from Texas Instruments, another analog chip giant, echoes the better-than-expected outlook from STMicroelectronics, indicating that the analog chip market appears to be recovering. Texas Instruments expects revenue of $4.32 billion to $4.68 billion for the first quarter of 2026, with the midpoint of the forecast slightly higher than the market expectation of $4.42 billion; earnings per share are expected to be $1.22 to $1.48, with the midpoint of the forecast better than the market expectation of $1.26. Analog chip prices have also entered a period of intensive price increases. At the end of last year, Texas Instruments and Analog Devices (ADI) mainly announced price increases. After January, domestic companies such as Ingenic Semiconductor, Microchip Technology, and Bi-Micro Technology successively issued price increase notices. The overall consensus on price increases has been basically established, and it is expected that a recovery cycle with both volume and price increases will be entered in the later period.
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