Equity Profile

STM

STMicroelectronics N.V.

Information TechnologySemiconductors$48.2B

Jul23Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

STMicroelectronics N.V. (STM) is a global semiconductor company that designs and manufactures a wide range of electronic components....

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a critical measure of the company's profitability and will indicate how well STM is managing costs and generating income.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and adapt to changing consumer demands, especially in a competitive semiconductor landscape.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

STM Q2-2026 Earnings Preview

Context

Company Snapshot

STMicroelectronics N.V. (STM) is a global semiconductor company that designs and manufactures a wide range of electronic components. As a key player in the Information Technology sector, STM is involved in major themes like AI, IoT, and automotive electronics, making it essential for various technology applications.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

-5.28%

Avg Stock Reaction

-5.32%

Last Quarter Recap

In Q1-2026, STM reported an EPS of $0.13, which was below the expected $0.19, resulting in a 10.81% increase in stock price the following day. The company has struggled with meeting earnings expectations in recent quarters.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for STM are cautious given its recent earnings misses, but there is hope for a rebound in performance. Investors are looking for signs of improved profitability and revenue growth.

Bull Case

The optimistic view is that STM could surprise the market with strong demand for its products, leading to better-than-expected earnings and revenue growth, particularly in sectors like automotive and AI.

Bear Case

On the pessimistic side, continued supply chain issues or weak demand could lead to another earnings miss, further impacting investor confidence and stock performance.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to previous quarters?

Given the company's recent struggles with earnings, the EPS figure will be closely scrutinized to gauge whether STM is on a recovery path.

What are the expectations for revenue growth in the automotive and AI sectors?

These sectors are critical for STM's future growth, and any positive commentary could boost investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating STM's potential for recovery, particularly in the automotive sector, where demand for semiconductors is expected to rise significantly.

Supporting Evidence

Historical patterns show that STM has a 63% EPS beat rate, suggesting potential for positive surprises.

Options pricing indicates a larger-than-average move, reflecting uncertainty that could favor a positive outcome.

Recent trends in automotive and AI sectors suggest a rebound in demand that may not be fully reflected in current estimates.

Key Risk

If STM reports an EPS above $0.20, it could significantly shift market sentiment and expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis this quarter revolves around STM's ability to rebound from recent earnings misses and demonstrate growth in key sectors.

Bull Confirmed If

An EPS of $0.20 or higher would confirm the bull case, indicating a strong recovery in profitability.

Bear Confirmed If

An EPS below $0.10 would confirm the bear case, suggesting ongoing challenges in meeting market expectations.

Pre-Earnings Positioning

Options Market

Implied Move

±16.59%

Historical Avg

±9.8%

Pricing rich

The options market is pricing in a significant potential move in either direction, indicating uncertainty about the upcoming earnings report.

Options are pricing ±16.6% while STM has averaged ±9.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.7%

30d HV

58.6%

Calls (2.8M)P/C Ratio: 0.33Puts (215K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If STM beats expectations, history suggests a potential stock increase of around 6.38%, confirming a positive turnaround in performance.

In-Line / Cautious

If results are in line with expectations, the stock may see limited movement as investors await clearer signals of recovery.

Miss

If STM misses again, history indicates an average decline of 3.56%, which could further erode investor confidence.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on supply chain improvements and their impact on production capacity.
2Details on customer demand trends in the automotive and AI sectors.
3Management's outlook on revenue growth for the next quarter.
4Insights into cost management strategies and their effect on gross margins.
5Any commentary on competitive positioning in the semiconductor market.

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AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

STMicroelectronics N.V. (STM) is a global semiconductor company that designs and manufactures a wide range of electronic components....

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a critical measure of the company's profitability and will indicate how well STM is managing costs and generating income.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and adapt to changing consumer demands, especially in a competitive semiconductor landscape.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

STM Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

63%

Avg EPS Surprise

-5.28%

Avg Stock Reaction

-5.32%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

Bear Case

On the pessimistic side, continued supply chain issues or weak demand could lead to another earnings miss, further impacting investor confidence and stock performance.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be this quarter, and how does it compare to previous quarters?

Given the company's recent struggles with earnings, the EPS figure will be closely scrutinized to gauge whether STM is on a recovery path.

What are the expectations for revenue growth in the automotive and AI sectors?

These sectors are critical for STM's future growth, and any positive commentary could boost investor confidence.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating STM's potential for recovery, particularly in the automotive sector, where demand for semiconductors is expected to rise significantly.

Supporting Evidence

Historical patterns show that STM has a 63% EPS beat rate, suggesting potential for positive surprises.

Options pricing indicates a larger-than-average move, reflecting uncertainty that could favor a positive outcome.

Recent trends in automotive and AI sectors suggest a rebound in demand that may not be fully reflected in current estimates.

Key Risk

If STM reports an EPS above $0.20, it could significantly shift market sentiment and expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis this quarter revolves around STM's ability to rebound from recent earnings misses and demonstrate growth in key sectors.

Bull Confirmed If

An EPS of $0.20 or higher would confirm the bull case, indicating a strong recovery in profitability.

Bear Confirmed If

An EPS below $0.10 would confirm the bear case, suggesting ongoing challenges in meeting market expectations.

Pre-Earnings Positioning

Options Market

Implied Move

±16.59%

Historical Avg

±9.8%

Pricing rich

The options market is pricing in a significant potential move in either direction, indicating uncertainty about the upcoming earnings report.

Options are pricing ±16.6% while STM has averaged ±9.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.7%

30d HV

58.6%

Calls (2.8M)P/C Ratio: 0.33Puts (215K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If STM beats expectations, history suggests a potential stock increase of around 6.38%, confirming a positive turnaround in performance.

In-Line / Cautious

If results are in line with expectations, the stock may see limited movement as investors await clearer signals of recovery.

Miss

If STM misses again, history indicates an average decline of 3.56%, which could further erode investor confidence.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on supply chain improvements and their impact on production capacity.
2Details on customer demand trends in the automotive and AI sectors.
3Management's outlook on revenue growth for the next quarter.
4Insights into cost management strategies and their effect on gross margins.
5Any commentary on competitive positioning in the semiconductor market.