STMicroelectronics N.V. (STM) AI Stock Analysis

STMicroelectronics N.V. designs, develops, manufactures, and sells semiconductor products across Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates via three segments: Automotive and Discrete Group, Analog, MEMS and Sensors Group, and Microcontrollers and Digital ICs Group. Products include automotive integrated circuits, discrete and power transistors, industrial ASICs, general-purpose analog products, wireless charging solutions, galvanic isolated gate drivers, amplifiers, sensors, and microcontrollers. Products are distributed through distributors, retailers, and sales representatives.

Between FY2021 and FY2023, STMicroelectronics expanded revenue from $12.76B to a peak of $17.29B, with operating margins peaking at 27.5% in FY2022. Revenue subsequently contracted 23.2% in FY2024 to $13.27B and fell 10.8% in FY2025 to $11.84B, while net income declined from $4.21B in FY2023 to $166.5M in FY2025. Over the five years from FY2020 to FY2025, revenue grew at a 3.0% CAGR. In the quarter ended June 30, 2026, quarterly revenue grew 26.1% year-over-year, while quarterly earnings declined 33.3%. For the trailing twelve months, revenue reached $13.10B with an operating margin of 6.9%.

As of June 30, 2026, STMicroelectronics held $6.03B in cash and short-term investments against total debt of $4.03B, resulting in net cash of $2.01B. The balance sheet shows a current ratio of 2.78 and a debt-to-equity ratio of 0.23, supported by shareholders' equity of $17.64B. In FY2025, the company generated $2.15B in operating cash flow, funded capital expenditures of $2.20B, and recorded free cash flow of -$52.0M. Capital deployment in FY2025 included $367.0M in share buybacks and $321.0M in dividends paid.

At a share price of $45.39, STMicroelectronics has a market capitalization of $40.64B and an enterprise value of $44.60B. The stock trades at a forward P/E of 20.0x, above the 18.8x median of its US-listed Technology peers. Its enterprise value to EBITDA ratio stands at 20.3x compared to the peer median of 16.6x, and its price-to-sales multiple is 3.1x versus the peer median of 2.8x. Over the past year, STM returned 56.1%, outperforming the S&P 500's 16.8% return, while its 5-year return of 11.5% trails the S&P 500's 83.0% gain.

STMicroelectronics pays an annualized forward dividend of $0.36 per share, providing a dividend yield of 0.79% with a payout ratio of 48.0%. The company has paid dividends for 28 consecutive years, registering a 5-year annualized dividend growth rate of 14.1%. Dividends are distributed on a quarterly frequency, with the last ex-dividend date listed as March 16, 2027.

Wall Street analyst coverage consists of 7 Strong Buy ratings, 1 Buy rating, and 6 Hold ratings. The mean price target is $75.04, representing an upside of 65.3% from the last close of $45.39. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $14.43B and an EPS of $1.34, representing 152.7% EPS growth. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is scheduled for October 29, 2026.

This page is an AI-written research summary of STMicroelectronics N.V. (STM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STM income statement, STM balance sheet, STM key metrics, STM analyst forecast, STM chart. See the STM stock overview for the latest quote and news.