Equity Profile

STM

STMicroelectronics N.V.

Information TechnologySemiconductors$61.3B

Jul23Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Key Metrics to Watch

Revenue Growth

This metric will indicate how well STM is adapting to market demands and competition, especially in the semiconductor space.

N/A

Gross Margin

Gross margin reflects the company's efficiency in managing production costs, which is critical in the competitive semiconductor industry.

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 leading semiconductor company that designs and manufactures a range of products used in various applications, including automotive, industrial, and consumer electronics. As a key player in the information technology sector, STM is positioned to benefit from trends like the increasing demand for smart devices and electric vehicles.

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, falling short of expectations by 32.64%. Following the announcement, the stock rose by 10.81%, indicating some investor optimism despite the miss.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for STM's upcoming earnings are uncertain, given the lack of analyst estimates and mixed historical performance. Investors will be closely watching for any signs of recovery in revenue and profitability.

Bull Case

The optimistic view is that STM could surprise the market with strong revenue growth driven by increased demand in automotive and industrial sectors, leading to improved margins.

Bear Case

Conversely, the pessimistic outlook suggests that STM may continue to struggle with profitability and revenue growth, particularly if macroeconomic conditions remain challenging.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the revenue growth rate for the automotive segment?

Given the increasing demand for electric vehicles, strong performance in this segment could indicate a positive trend for STM's overall growth.

How is STM managing its production costs and what is the gross margin outlook?

Understanding cost management and margin expectations will be crucial for assessing the company's profitability in a competitive environment.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating STM's potential for recovery in the automotive sector, particularly as electric vehicle adoption accelerates.

Supporting Evidence

STM's historical performance shows resilience in segments like automotive, which could drive unexpected revenue growth.

Options are pricing in a larger move than the stock has historically shown, suggesting potential overreaction to recent misses.

The company's strong position in the semiconductor market may allow it to capitalize on emerging trends faster than competitors.

Key Risk

If automotive segment revenue exceeds expectations, it could shift the narrative significantly.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around STM's ability to navigate market challenges while maintaining profitability.

Bull Confirmed If

Revenue growth of at least 10% year-over-year would confirm the bull case.

Bear Confirmed If

A decline in gross margins below 35% would support the bear case.

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 for STM's stock, indicating that investors expect volatility around the 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 the stock could rise by an average of 6.38%, confirming a positive outlook.

In-Line / Cautious

If results are in line with cautious guidance, the stock may experience muted movement as investors reassess future growth.

Miss

Should STM miss expectations, history indicates a potential decline of around 3.56%, reflecting continued investor concerns.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on automotive revenue growth and demand trends.
2Insights into cost management strategies and gross margin expectations.
3Comments on supply chain challenges and how they are being addressed.
4Updates on new product launches or innovations in the semiconductor space.
5Management's outlook on macroeconomic conditions affecting demand.

See the full picture

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

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Company Snapshot

Key Metrics to Watch

Revenue Growth

This metric will indicate how well STM is adapting to market demands and competition, especially in the semiconductor space.

N/A

Gross Margin

Gross margin reflects the company's efficiency in managing production costs, which is critical in the competitive semiconductor industry.

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

In Q1 2026, STM reported an EPS of $0.13, falling short of expectations by 32.64%. Following the announcement, the stock rose by 10.81%, indicating some investor optimism despite the miss.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

The optimistic view is that STM could surprise the market with strong revenue growth driven by increased demand in automotive and industrial sectors, leading to improved margins.

Bear Case

Conversely, the pessimistic outlook suggests that STM may continue to struggle with profitability and revenue growth, particularly if macroeconomic conditions remain challenging.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the revenue growth rate for the automotive segment?

Given the increasing demand for electric vehicles, strong performance in this segment could indicate a positive trend for STM's overall growth.

How is STM managing its production costs and what is the gross margin outlook?

Understanding cost management and margin expectations will be crucial for assessing the company's profitability in a competitive environment.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating STM's potential for recovery in the automotive sector, particularly as electric vehicle adoption accelerates.

Supporting Evidence

STM's historical performance shows resilience in segments like automotive, which could drive unexpected revenue growth.

Options are pricing in a larger move than the stock has historically shown, suggesting potential overreaction to recent misses.

The company's strong position in the semiconductor market may allow it to capitalize on emerging trends faster than competitors.

Key Risk

If automotive segment revenue exceeds expectations, it could shift the narrative significantly.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around STM's ability to navigate market challenges while maintaining profitability.

Bull Confirmed If

Revenue growth of at least 10% year-over-year would confirm the bull case.

Bear Confirmed If

A decline in gross margins below 35% would support the bear case.

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 for STM's stock, indicating that investors expect volatility around the 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 the stock could rise by an average of 6.38%, confirming a positive outlook.

In-Line / Cautious

If results are in line with cautious guidance, the stock may experience muted movement as investors reassess future growth.

Miss

Should STM miss expectations, history indicates a potential decline of around 3.56%, reflecting continued investor concerns.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on automotive revenue growth and demand trends.
2Insights into cost management strategies and gross margin expectations.
3Comments on supply chain challenges and how they are being addressed.
4Updates on new product launches or innovations in the semiconductor space.
5Management's outlook on macroeconomic conditions affecting demand.