October 28, 2025 /SemiMedia/ — STMicroelectronics reported its financial results for the third quarter ended September 27, 2025, with earnings slightly below market expectations, leading to a notable drop in the company’s stock.

The company posted Q3 revenue of $3.187 billion, down 2% year-on-year, slightly above analyst consensus of $3.163 billion. GAAP operating profit fell 53% to $180 million, while GAAP gross margin was 33.2%, slightly lower than the prior year. GAAP net profit reached $237 million, down 32.3% year-on-year. On a non-GAAP basis, net profit declined to $267 million from $351 million, a 23.9% decrease, with operating margin falling from 11.7% to 6.8%.

STMicroelectronics cited approximately $37 million in expenses related to asset impairments, restructuring, and cost reduction programs as the primary drivers of the profit decline.

CEO Jean-Marc Chery commented, “Q3 net revenue was slightly above the midpoint of our business forecast range. Personal electronics revenue grew, while automotive and industrial segments remained stable, and consumer electronics and consumer products performed largely as expected. Gross margin was slightly below the midpoint due to differences in the automotive and industrial product mix.”

Looking ahead, STMicroelectronics expects Q4 revenue of approximately $3.28 billion, representing a 2.9% sequential increase, with gross margin around 35.0%. Based on the midpoint of this outlook, the company anticipates full-year 2025 revenue of approximately $11.75 billion, with the second half growing 22.4% over the first half, indicating signs of market recovery. Full-year gross margin is projected at roughly 33.8%.

Chery also noted, “To optimize investment in line with current market conditions, we have reduced our net capital expenditure plan. Net capex for fiscal 2025 is expected to be slightly below $2 billion.”