Operating margins have plummeted to 3.1% in 2026Q1 from a 23.9% peak in 2023Q4, reflecting severe underutilization charges and reduced pricing power.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 12.4B | 11.84B | 13.27B | 17.29B | 16.13B | 12.76B | 10.22B | 9.56B | 9.66B | 8.35B | 6.97B | 6.9B | 7.4B | 8.08B | 8.49B | 9.73B | 10.35B | 8.51B | 9.84B | 10B | 9.85B | 8.88B | 8.76B | 7.24B | 6.32B | 6.36B | 7.81B | 5.06B | 4.25B | 4.02B | 4.12B |
| Revenue Growth % | 0.59% | -10.8% | -23.24% | 7.18% | 26.39% | 24.88% | 6.94% | -1.12% | 15.78% | 19.7% | 1.1% | -6.85% | -8.39% | -4.84% | -12.76% | -5.91% | 21.57% | -13.53% | -1.59% | 1.49% | 10.94% | 1.39% | 21.03% | 14.56% | -0.61% | -18.64% | 54.52% | 19.03% | 5.69% | -2.5% | 15.98% |
| Cost of Goods Sold | 8.2B | 7.83B | 8.05B | 9B | 8.49B | 7.43B | 6.43B | 5.86B | 6.1B | 5.31B | 4.73B | 4.91B | 5.32B | 5.47B | 5.71B | 6.16B | 6.33B | 5.88B | 6.28B | 6.46B | 6.33B | 5.84B | 5.53B | 4.67B | 4.02B | 4.05B | 4.22B | 3.05B | 2.62B | 2.46B | 2.41B |
| COGS % of Revenue | - | 66.11% | 60.66% | 52.06% | 52.66% | 58.26% | 62.92% | 61.32% | 63.08% | 63.65% | 67.85% | 71.15% | 71.87% | 67.66% | 67.23% | 63.29% | 61.19% | 69.14% | 63.83% | 64.64% | 64.25% | 65.81% | 63.15% | 64.55% | 63.63% | 63.66% | 53.97% | 60.41% | 61.75% | 61.14% | 58.58% |
| Gross Profit | 4.2B | 4.01B | 5.22B | 8.29B | 7.63B | 5.33B | 3.79B | 3.7B | 3.57B | 3.03B | 2.24B | 1.99B | 2.08B | 2.61B | 2.78B | 3.57B | 4.01B | 2.63B | 3.56B | 3.54B | 3.52B | 3.04B | 3.23B | 2.57B | 2.3B | 2.31B | 3.6B | 2B | 1.62B | 1.56B | 1.71B |
| Gross Margin % | 33.84% | 33.89% | 39.34% | 47.94% | 47.34% | 41.74% | 37.08% | 38.68% | 36.92% | 36.35% | 32.15% | 28.85% | 28.13% | 32.34% | 32.77% | 36.71% | 38.81% | 30.86% | 36.17% | 35.36% | 35.75% | 34.19% | 36.85% | 35.45% | 36.37% | 36.34% | 46.03% | 39.59% | 38.25% | 38.86% | 41.42% |
| Gross Profit Growth % | - | -23.15% | -37.01% | 8.54% | 43.35% | 40.56% | 2.52% | 3.59% | 17.6% | 35.33% | 12.66% | -4.46% | -20.31% | -6.07% | -22.13% | -10.98% | 52.89% | -26.24% | 0.68% | 0.37% | 16% | -5.92% | 25.8% | 11.66% | -0.52% | -35.77% | 79.65% | 23.2% | 4.04% | -8.54% | -7.73% |
| Operating Expenses | 3.76B | 3.69B | 3.54B | 3.68B | 3.2B | 2.91B | 2.47B | 2.49B | 2.19B | 1.99B | 2.06B | 1.86B | 2.19B | 2.79B | 3.49B | 3.45B | 3.44B | 3.36B | 3.76B | 2.81B | 2.77B | 2.67B | 2.47B | 2.03B | 1.66B | 1.29B | 1.81B | 1.48B | 1.1B | 1.04B | 908.23M |
| OpEx % of Revenue | - | 31.15% | 26.71% | 21.27% | 19.82% | 22.78% | 24.13% | 26.09% | 22.61% | 23.85% | 29.51% | 26.94% | 29.63% | 34.48% | 41.07% | 35.47% | 33.2% | 39.46% | 38.18% | 28.07% | 28.1% | 30% | 28.18% | 28.01% | 26.32% | 20.34% | 23.21% | 29.24% | 25.93% | 25.92% | 22.03% |
| Selling, General & Admin | 1.68B | 1.64B | 1.65B | 1.63B | 1.45B | 1.32B | 1.11B | 1.11B | 1.11B | 993M | 920M | 891M | 940M | 1.07B | 1.17B | 1.21B | 1.18B | 1.16B | 1.19B | 1.1B | 1.07B | 1.03B | 947M | 785M | 648M | 641.44M | 703.67M | 534.18M | 488.07M | 454.31M | 421.01M |
| SG&A % of Revenue | - | 13.83% | 12.43% | 9.44% | 9.02% | 10.37% | 10.85% | 11.61% | 11.44% | 11.9% | 13.19% | 12.92% | 12.7% | 13.19% | 13.73% | 12.43% | 11.36% | 13.62% | 12.06% | 10.99% | 10.83% | 11.55% | 10.81% | 10.85% | 10.26% | 10.09% | 9.01% | 10.56% | 11.49% | 11.3% | 10.21% |
| Research & Development | 2.08B | 2.05B | 2.08B | 2.1B | 1.9B | 1.72B | 1.55B | 1.62B | 1.13B | 1.05B | 1.13B | 1.11B | 1.16B | 1.82B | 2.41B | 2.35B | 2.35B | 2.16B | 2.15B | 1.71B | 1.67B | 1.63B | 1.53B | 1.24B | 1.02B | 977.93M | 1.03B | 835.96M | 689.78M | 610.85M | 532.29M |
| R&D % of Revenue | - | 17.32% | 15.65% | 12.15% | 11.79% | 13.5% | 15.15% | 16.99% | 11.66% | 12.63% | 16.13% | 16.11% | 15.6% | 22.47% | 28.41% | 24.16% | 22.71% | 25.42% | 21.87% | 17.05% | 16.92% | 18.35% | 17.49% | 17.1% | 16.18% | 15.38% | 13.14% | 16.53% | 16.24% | 15.2% | 12.91% |
| Other Operating Expenses | 0 | 0 | -182M | -55M | -159M | -139M | -191M | -240M | -1M | -8M | 0 | 2M | 259M | -95M | -91M | 4.59B | 4.61B | 4.56B | 4.24B | 0 | 3.37B | 0 | 0 | 0 | 0 | -326.49M | 83.53M | 108.25M | -76.46M | -23.22M | -45.07M |
| Operating Income | 438.82M | 324M | 1.68B | 4.61B | 4.44B | 2.42B | 1.32B | 1.2B | 1.35B | 1.08B | 271M | 109M | 148M | -465M | -2.08B | 46M | 476M | -1.02B | -198M | -545M | 677M | 244M | 683M | 334M | 601M | 671.5M | 1.78B | 523.41M | 523.41M | 519.82M | 799.42M |
| Operating Margin % | 3.54% | 2.74% | 12.63% | 26.67% | 27.52% | 18.96% | 12.95% | 12.59% | 14.02% | 12.93% | 3.89% | 1.58% | 2% | -5.75% | -24.5% | 0.47% | 4.6% | -12.02% | -2.01% | -5.45% | 6.87% | 2.75% | 7.8% | 4.61% | 9.51% | 10.56% | 22.82% | 10.35% | 12.32% | 12.93% | 19.39% |
| Operating Income Growth % | - | -80.67% | -63.65% | 3.87% | 83.51% | 82.84% | 9.98% | -11.22% | 25.58% | 298.15% | 148.62% | -26.35% | 131.83% | 77.66% | -4623.91% | -90.34% | 146.53% | -416.67% | 63.67% | -180.5% | 177.46% | -64.28% | 104.49% | -44.43% | -10.5% | -62.33% | 240.6% | 0% | 0.69% | -34.98% | 32.14% |
| EBITDA | 2.32B | 401.24M | 3.44B | 6.17B | 5.66B | 3.46B | 2.25B | 2.06B | 2.15B | 1.73B | 967M | 1B | 1.16B | 445M | -974M | 1.32B | 1.72B | 344M | 1.17B | 886M | 2.46B | 2.19B | 2.55B | 2.01B | 2.07B | 2.07B | 2.92B | 1.33B | 1.23B | 1.13B | 1.34B |
| EBITDA Margin % | 18.75% | 3.39% | 25.89% | 35.71% | 35.06% | 27.15% | 21.98% | 21.53% | 22.21% | 20.71% | 13.87% | 14.51% | 15.6% | 5.51% | -11.47% | 13.61% | 16.59% | 4.04% | 11.87% | 8.86% | 24.97% | 24.69% | 29.09% | 27.77% | 32.76% | 32.57% | 37.37% | 26.31% | 28.9% | 28.06% | 32.39% |
| EBITDA Growth % | -25.65% | -88.32% | -44.33% | 9.14% | 63.25% | 54.23% | 9.19% | -4.15% | 24.12% | 78.8% | -3.4% | -13.33% | 159.55% | 145.69% | -173.51% | -22.79% | 398.84% | -70.55% | 31.83% | -64% | 12.22% | -13.93% | 26.77% | -2.9% | -0.02% | -29.09% | 119.51% | 8.37% | 8.82% | -15.53% | 33.88% |
| D&A (Non-Cash Add-back) | 1.89B | 0 | 1.76B | 1.56B | 1.22B | 1.04B | 923M | 854M | 791M | 650M | 696M | 892M | 1.01B | 910M | 1.11B | 1.28B | 1.24B | 1.37B | 1.37B | 1.43B | 1.78B | 1.95B | 1.86B | 1.68B | 1.47B | 1.4B | 1.14B | 806.79M | 704M | 608.12M | 535.91M |
| EBIT | 436.36M | 401.24M | 1.96B | 4.82B | 4.5B | 2.38B | 1.32B | 1.19B | 1.44B | 1B | 241M | 129M | 136M | -593M | -2.06B | 382M | 725M | -1.45B | -742M | -421M | 754M | 372M | 759M | 539M | 635M | 1.02B | 1.78B | 523.41M | 671.5M | 519.82M | 799.42M |
| Net Interest Income | 146.4M | 168.52M | 218M | 171M | 58M | -29M | -20M | 1M | -7M | -22M | -20M | -22M | -18M | -5M | -35M | -25M | -3M | 9M | 51M | 83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 161.6M | 168.52M | 303M | 226M | 71M | 13M | 34M | 55M | 47M | 30M | 20M | 18M | 12M | 18M | 41M | 0 | 31M | 59M | 132M | 156M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 15.2M | 0 | 85M | 55M | 13M | 42M | 54M | 54M | 54M | 52M | 40M | 40M | 30M | 23M | 76M | 25M | 34M | 50M | 81M | 73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -60.66M | 77.24M | 202M | 152M | 47M | -82M | -56M | -14M | -11M | -52M | -26M | -20M | -62M | -127M | -1.49B | 318M | -27M | -473M | -625M | -1.1B | 87M | -54M | -11M | -95M | -79M | -353M | 44.5M | 181.06M | 8.06M | -248K | -2.24M |
| Pretax Income | 378.16M | 401.24M | 1.88B | 4.76B | 4.49B | 2.34B | 1.27B | 1.19B | 1.76B | 343M | 153M | 139M | 98M | -592M | -2.14B | 336M | 691M | -1.5B | -823M | -494M | 764M | 275M | 672M | 239M | 522M | 318.13M | 1.83B | 704.47M | 531.47M | 519.57M | 797.18M |
| Pretax Margin % | 3.05% | 3.39% | 14.15% | 27.55% | 27.82% | 18.31% | 12.4% | 12.44% | 18.21% | 4.11% | 2.19% | 2.02% | 1.32% | -7.32% | -25.16% | 3.45% | 6.68% | -17.58% | -8.36% | -4.94% | 7.75% | 3.1% | 7.67% | 3.3% | 8.26% | 5% | 23.39% | 13.93% | 12.51% | 12.93% | 19.34% |
| Income Tax | 216.4M | 220.68M | 313M | 541M | 520M | 331M | 159M | 156M | 125M | 117M | 27M | -42M | -44M | 37M | 51M | 181M | 149M | -95M | -43M | -23M | -20M | 8M | 68M | -14M | 89M | 61.06M | 375.12M | 157.21M | 120.35M | 113.02M | 171.64M |
| Effective Tax Rate % | 57.23% | 55% | 16.67% | 11.36% | 11.59% | 14.16% | 12.55% | 13.12% | 7.1% | 34.11% | 17.65% | -30.22% | -44.9% | -6.25% | -2.39% | 53.87% | 21.56% | 6.35% | 5.22% | 4.66% | -2.62% | 2.91% | 10.12% | -5.86% | 17.05% | 19.19% | 20.53% | 22.32% | 22.64% | 21.75% | 21.53% |
| Net Income | 144.73M | 166.51M | 1.56B | 4.21B | 3.96B | 2B | 1.11B | 1.03B | 1.63B | 218M | 121M | 175M | 141M | -500M | -1.16B | 650M | 830M | -1.13B | -786M | -477M | 782M | 266M | 601M | 253M | 429M | 257.07M | 1.45B | 547.25M | 411.12M | 406.55M | 625.54M |
| Net Margin % | 1.17% | 1.41% | 11.73% | 24.36% | 24.55% | 15.67% | 10.82% | 10.8% | 16.86% | 2.61% | 1.74% | 2.54% | 1.9% | -6.19% | -13.63% | 6.68% | 8.02% | -13.29% | -7.99% | -4.77% | 7.94% | 2.99% | 6.86% | 3.5% | 6.79% | 4.04% | 18.59% | 10.82% | 9.68% | 10.12% | 15.17% |
| Net Income Growth % | -86.86% | -89.31% | -63.03% | 6.34% | 98% | 80.83% | 7.17% | -36.65% | 647.25% | 80.17% | -30.86% | 24.11% | 128.2% | 56.82% | -278.15% | -21.69% | 173.39% | -43.89% | -64.78% | -161% | 193.99% | -55.74% | 137.55% | -41.03% | 66.88% | -82.3% | 165.34% | 33.11% | 1.12% | -35.01% | 18.81% |
| Net Income (Continuing) | 161.75M | 180.56M | 1.56B | 4.22B | 3.97B | 2.01B | 1.11B | 1.03B | 1.28B | 812M | 163M | 110M | 129M | -629M | -2.19B | 155M | 542M | -1.4B | -780M | -471M | 784M | 267M | 604M | 253M | 429M | 257M | 1.45B | 547.25M | 411.12M | 406.55M | 625.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 403M | 397M | 230M | 123M | 65M | 64M | 58M | 68M | 65M | 63M | 61M | 61M | 61M | 74M | 139M | 393M | 910M | 1.22B | 276M | 53M | 52M | 50M | 48M | 45M | 42M | 36M | 32.96M | 24.76M | 22.01M | 15.8M | 9.9M |
| EPS (Diluted) | 0.16 | 0.18 | 1.66 | 4.46 | 4.74 | 2.16 | 1.20 | 1.14 | 1.79 | 0.89 | 0.19 | 0.12 | 0.14 | -0.56 | -1.31 | 0.72 | 0.92 | -1.29 | -0.88 | -0.53 | 0.78 | 0.29 | 0.65 | 0.27 | 0.48 | 0.29 | 1.58 | 0.62 | 0.48 | 0.47 | 0.75 |
| EPS Growth % | -86.32% | -89.16% | -62.78% | -5.91% | 119.44% | 80% | 5.26% | -36.31% | 101.12% | 368.42% | 58.33% | -14.29% | 125% | 57.25% | -281.94% | -21.74% | 171.32% | -46.59% | -66.04% | -167.95% | 168.97% | -55.38% | 140.74% | -43.75% | 65.52% | -81.65% | 154.84% | 29.17% | 2.13% | -37.33% | 11.94% |
| EPS (Basic) | - | 0.19 | 1.73 | 4.66 | 4.77 | 2.21 | 1.24 | 1.15 | 1.81 | 0.91 | 0.19 | 0.12 | 0.14 | -0.56 | -1.31 | 0.74 | 0.94 | -1.29 | -0.88 | -0.53 | 0.78 | 0.30 | 0.67 | 0.29 | 0.48 | 0.29 | 1.64 | 0.64 | 0.49 | 0.47 | 0.75 |
| Diluted Shares Outstanding | 925M | 923.1M | 938.6M | 944.2M | 912.27M | 923.76M | 919.73M | 903.65M | 910.96M | 906.09M | 886.25M | 880.55M | 889.81M | 889.54M | 886.7M | 904.46M | 911.11M | 876.93M | 891.96M | 898.73M | 1B | 917.24M | 924.62M | 937.04M | 893.75M | 886.21M | 919.05M | 882.66M | 856.5M | 839.94M | 836.04M |
| Basic Shares Outstanding | 925M | 873.68M | 900M | 903.51M | 905.61M | 904.33M | 894.58M | 894.3M | 899.36M | 884.71M | 881.25M | 876.51M | 886.53M | 889.54M | 883.97M | 883.62M | 880.38M | 876.93M | 891.96M | 898.73M | 1B | 886.67M | 897.01M | 872.41M | 893.75M | 886.21M | 885.43M | 855.08M | 844.77M | 835.39M | 833.01M |
| Dividend Payout Ratio | - | 192.78% | 18.5% | 5.3% | 5.35% | 10.25% | 15.19% | 20.74% | 13.26% | 98.17% | 207.44% | 200% | 251.06% | - | - | 50.31% | 25.54% | - | - | - | 13.68% | 40.23% | 17.8% | 28.06% | 8.39% | 14% | 1.83% | 4.17% | - | - | - |
Cyclical Margin Compression
According to the latest quarterly data, STMicroelectronics experienced a significant revenue contraction, with the most recent period showing a 22.8% year-over-year decline, reflecting broader semiconductor industry destocking and weakening demand across its core automotive and industrial end-markets that warrants close monitoring by prospective investors.
The consistent downward trend in quarterly revenue from $4.3 billion in late 2023 to $3.1 billion in 2026Q1 suggests that the company is struggling to find a bottom in its primary demand channels. This deceleration appears to be driven by a combination of inventory corrections and a cooling in the automotive sector, which historically provided a stable revenue floor.
As reported in financial statements, the company's gross margin has compressed significantly to 33.8% in 2026Q1, down from the 45.5% levels observed in late 2023, indicating that the firm's integrated manufacturing model is currently suffering from severe underutilization charges and reduced pricing power in a competitive environment.
The sharp decline in gross profitability suggests that the high fixed-cost nature of the company's wafer fabrication facilities is acting as a drag on performance during this volume downturn. Investors should monitor whether the company can maintain these levels without further deterioration, as the current margin profile sits well below the performance of more specialized analog peers.
Based on the provided income statement data, operating margins have plummeted to 3.1% in 2026Q1 from a peak of 23.9% in 2023Q4, demonstrating that the company's high operating leverage is amplifying the negative impact of revenue declines on the bottom line during this cyclical trough.
The inability to scale down operating expenses in proportion to the revenue drop suggests a rigid cost structure that may limit profitability recovery in the near term. This lack of operational flexibility appears to be a primary factor in the volatility of the company's recent earnings performance.
Analysis of the income statement reveals that net income has become increasingly erratic, with the company reporting a net loss in 2025Q4 and 2025Q2, suggesting that the current earnings quality is heavily impacted by non-operating items and the high intensity of required capital reinvestment.
Short-term volatility in net income, coupled with the recent absence of stock-based compensation in several quarters, raises questions about the underlying earnings power of the business. Investors should be cautious, as the current path to profitability appears highly sensitive to external macroeconomic factors rather than internal efficiency gains.
Quick answers to the most common questions about buying STM stock.
For fiscal year 2025, STMicroelectronics N.V. (STM) reported total revenue of $11.84B. This represents a 187.1% increase compared to $4.12B in 1996.
STMicroelectronics N.V. (STM) is profitable, generating $166.5M in net income for the fiscal year ending 2025 with a net profit margin of 1.4%.
STMicroelectronics N.V. (STM) reported an operating income of $324.0M, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
STMicroelectronics N.V. (STM) generated $4.01B in gross profit for the year, representing a gross profit margin of 33.9%. This demonstrates the company's core pricing power and production efficiency.