STMicroelectronics Reports Q3 2026 Results: Revenue Up 17.9% to $3.76 Billion Driven by AI Data Centers and Satellites
STMicroelectronics reported Q3 2026 net revenues of $3.76 billion, up 17.9% year-over-year, with gross margin rising to 37.3%. The company guided for Q4 revenue of $4.15 billion and full-year 2026 revenue of approximately $14.5 billion, citing strong demand from AI data centers and low-earth-orbit satellite communications.
Global semiconductor manufacturer STMicroelectronics N.V. released its financial results for the third quarter ended September 26, 2026, on October 29, 2026. The report shows net revenues of $3.76 billion, a 17.9% increase year-over-year, exceeding the midpoint of its previous business outlook. Gross margin reached 37.3%, an improvement of 410 basis points from 33.2% in the same period last year. Operating income stood at $367 million ($429 million on a non-U.S. GAAP basis).
CEO Jean-Marc Chery attributed the outperformance primarily to higher revenues in Communication Equipment and Computer Peripherals (CECP) and Personal Electronics. Demand from AI data centers and low-earth-orbit (LEO) satellite communications was highlighted as a key driver. Management expects approximately $1.3 billion in AI data-center revenue for 2026 and projects this segment's revenue to more than double in 2027. For LEO satellite communications, 2027 revenue is expected to meet or exceed the record levels seen in 2026, with capacity rather than demand potentially limiting growth.
Looking ahead, STMicroelectronics forecasts fourth-quarter net revenues of $4.15 billion at the midpoint, representing sequential growth of 10.5% and year-over-year growth of 24.7%. Gross margin is expected to be around 39.0%. Based on this outlook, full-year 2026 revenue is projected to reach approximately $14.5 billion, up 22.8% year-over-year. Despite uncertainties such as global trade tariffs, the company remains focused on improving profitability through manufacturing footprint restructuring and cost optimization.