Paris, Feb 1, 2026, 01:42 CET — Market closed.
- STMicroelectronics shares ended Friday at 23.84 euros, rising 1.3% following a choppy week tied to earnings.
- Management pointed to signs of demand picking up in early 2026, though restructuring charges remain a concern.
- The next checkpoint comes with Monday’s open, followed by the first-quarter report on April 23.
STMicroelectronics N.V. shares closed Friday 1.3% higher at 23.84 euros on Euronext Paris, recovering some ground after yesterday’s dip. Trading volume hit about 2.66 million shares. (Euronext Live)
That modest shift carries weight since ST serves as a key indicator for chip demand in European autos and factories. Investors want confirmation that the inventory backlog is genuinely easing, not merely relocating.
The company’s guidance provided a fresh point of focus as February loomed. It also kept the spotlight on a restructuring programme under scrutiny in France and Italy.
On Jan. 29, the Geneva-based company reported fourth-quarter net revenues of $3.33 billion, with a gross margin of 35.2%. Operating income came in at $125 million, weighed down by $141 million in impairment and restructuring charges, resulting in a net loss of $30 million. CEO Jean-Marc Chery forecast first-quarter net revenues at $3.04 billion at the midpoint, marking an 8.7% drop from the previous quarter. He projected a gross margin around 33.7%, factoring in 220 basis points of underutilisation costs, and set 2026 net capex guidance at $2.0-$2.2 billion. (ST News)
On the earnings call, Chery said the group steps into 2026 with “better visibility” as distribution inventories “progressively” improve. CFO Lorenzo Grandi warned some cost pressures would be felt “every quarter” this year. Analysts polled by LSEG had pegged first-quarter revenue at about $2.99 billion. Stéphane Houri at ODDO BHF described the “above seasonal” guidance as a “good sign” of “better trends,” even though ST’s chips remain more connected to Apple handsets and Tesla vehicles than the AI surge driven by Nvidia and Samsung Electronics. (Reuters)
The stock price took a sharp hit after the update, dropping 5.8% on Thursday before bouncing back 1.3% on Friday. Trading volume tumbled from around 7.9 million shares on Thursday to roughly 2.7 million on Friday, according to historical data. Over the week, the share ended down about 3.3%. (Investing)
Analyst reactions hit fast after the earnings release. UBS nudged up its price target to 31 euros from 30, keeping its buy rating intact. Oddo BHF followed suit, raising its target to 32 euros, according to MarketScreener. One note suggested these figures might spark a “cycle of upward revisions,” calling the stock “very attractive.”
STMicro’s product lineup ties it more to autos and industrial equipment than peers focused on data-center chips. When it comes to cars and power, it goes head-to-head with Infineon Technologies and NXP Semiconductors — sectors known for gradual shifts, until sudden jolts hit.
The downside remains clear. A sluggish electric-vehicle cycle, harsher pricing on standard chips, or delays in the factory overhaul could leave plants underutilized and squeeze margins further.
The market’s closed for the weekend, leaving focus on Monday to see if the stock can sustain Friday’s rebound. The next major event is April 23, when the company will release its first-quarter earnings. (Businessinsider)
