ST's net revenue for the first quarter of 2026 was $3.1 billion, a 23.0% year-over-year increase; gross margin was 33.8%, and operating profit was $70 million.
The company expects second-quarter revenue of $3.45 billion, with a gross margin of 34.8%.
CEO Jean-Marc Cherry stated that excluding revenue from the acquisition of NXP's MEMS sensor business, first-quarter revenue still exceeded the midpoint of the guidance, primarily benefiting from increased volume from projects with Consumer Electronics, Communications, and Computer Peripherals (CECP) customers; the better-than-expected gross margin stemmed from product structure optimization and upgrades.
Excluding the consolidation of NXP's MEMS business, first-quarter revenue still grew by 21.4% year-over-year.
US Generally Accepted Accounting Principles (GAAP): Gross margin 33.8%, operating margin 2.3%, net income $37 million
Non-US GAAP: Gross margin 34.1%, operating margin 5.5%, net income $122 million
CEO added: Despite macroeconomic uncertainties, industry demand continues to recover, order volume is strong, and channel inventory has returned to normal levels.
Q2 revenue guidance: 11.6% sequential growth, 24.9% year-over-year increase; gross margin 34.8% (including 100 basis points of idle capacity costs), non-US GAAP gross margin 35.2%.
ST strategically positions itself to capitalize on new AI business opportunities, leveraging dedicated chip technology to upgrade AI infrastructure. The company states:
Data center revenue will significantly exceed $500 million in 2026 and will substantially surpass $1 billion in 2027.
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