A European semiconductor maker whose tiny chips power countless everyday gadgets, from cars and smart-home appliances to gaming consoles and wearable devices, including its hugely popular STM32 microcontrollers. The company was born in 1987 from the merger of Italy's SGS Microelettronica and France's Thomson Semiconducteurs, two state-owned chipmakers, and was first known as SGS-Thomson. It kept that name until 1998, when it was rebranded STMicroelectronics — the "ST" that many hobbyists still know it by today.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
STMicroelectronics' operating income fell 89.6% to $175M as revenue declined 11.1% and gross margin contracted to 33.9%.
The semiconductor downturn deepened, pushing to 1.5%. fell 11.1% to $11.8 billion and contracted 5.4 points to 33.9% as lower prices, volumes, and manufacturing efficiencies combined with $376 million in and restructuring charges. The company is reshaping its manufacturing footprint while guiding for a further sequential revenue decline in Q1 2026.
Key takeaways
fell 89.6% to $175 million, weighed down by $376 million in , restructuring, and phase-out costs tied to a company-wide manufacturing footprint and cost-base reshaping program.
fell 11.1% to $11.8 billion, driven by a 6% decline in average selling prices and a 5% decline in volumes, with the Power & Discrete (P&D) falling 31.5%.
contracted 540 to 33.9%, primarily due to lower manufacturing efficiencies, unfavorable sales price and mix, and higher .
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Market risk arises mainly from foreign exchange and interest rate exposures, managed through policies and FX derivatives.
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Primary market risks are foreign exchange fluctuations (USD vs. Euro and other major cost currencies) and interest rate variations on cash investments.
Interest income depends on short-term rates in USD and EUR; a change in market rates would cause an equivalent change in interest income.
Net cash from operating activities was $2.15 billion, down 27.4%, and was $265 million as net declined to $1.79 billion from $2.53 billion in 2024.
The company ended the year with cash and equivalents of $2.84 billion, up 24.3%, and of $1.84 billion, down 6.5%, while rose 3.1% to $18.2 billion.
Q1 2026 projects net revenues of approximately $3.04 billion at the midpoint, a sequential decrease of 8.7%, and a of approximately 33.7%.
What changed
The prior year's watch item asked whether Q1 2025 of $2.51 billion and of 33.8% represented the trough. Full-year 2025 revenue of $11.8 billion and gross margin of 33.9% show the downturn persisted through the year, with no recovery materializing.
The MCU , which fell 38.8% in 2024 and was flagged as a potential demand inflection signal, is now reported within the reorganized MDRF product group, making direct comparison unavailable in this filing.
, flagged as a concern after falling to $288 million in 2024, remained under pressure at $265 million in 2025 as the company continued to invest in capacity while declined.
The reorganization into four reportable segments (AM&S, P&D, EMP, RFOC) under two product groups (APMS and MDRF) took effect, changing the transparency of performance relative to the prior ADG, AMS, and MDG structure.
What to watch
Whether the Q1 2026 of $3.04 billion and of 33.7% mark the bottom of the cycle, or if further sequential declines follow.
The trajectory of the Power & Discrete (P&D) , which fell 31.5% in 2025, as any stabilization would signal a broader demand recovery in industrial and automotive power markets.
generation against the declining but still material capital expenditure program, after free cash flow remained at $265 million in 2025.
The impact of the manufacturing footprint reshaping program on future gross margins, as the $376 million in and restructuring charges are intended to improve manufacturing efficiencies.
Cash and equivalents ($2.8B) and short-term deposits ($1.1B) are placed with highly rated institutions, while $985M in marketable securities are classified as and measured at Level 1 fair value.
totals $2,134M in principal, split between USD ($1,056M) and Euro ($1,078M), with a weighted-average interest rate of 2.02%.
The company uses FX forward contracts and currency options (not designated as hedges) across numerous currency pairs, with a net fair value of -$10M as of December 31, 2025.
The company does not anticipate material adverse effects from its financial instruments but cautions that hedging strategies may not be fully effective.
STMicroelectronics is a global integrated device manufacturer designing and selling semiconductor products across Automotive, Industrial, Personal Electronics, and Communications Equipment/Computers end-markets.
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The company operates through two product groups: Analog, Power & Discrete, and Sensors (APMS) and Microcontrollers, Digital ICs and RF products (MDRF), which are further divided into four reportable segments (AM&S, P&D, EMP, RFOC).
Its strategy targets long-term trends in smart mobility, power and energy management, and cloud-connected autonomous things, with specific growth drivers including ADAS, silicon carbide, general-purpose MCUs, and data center optical interconnects.
As an , ST operates 14 main manufacturing sites globally and uses a mix of in-house production and external foundries, subcontracting approximately 25% of silicon production value in 2025.
The company serves over 200,000 customers, with major named customers including Apple, Bosch, Tesla, and SpaceX, and is adapting to a trend where carmakers are taking a more direct role in semiconductor strategy and supply.
R&D is critical, with spending at 17.3% of net revenues in 2025, focused on differentiated technologies like FD-SOI, SiC, GaN, and embedded phase-change memory, supported by a portfolio of over 21,000 active and pending patents.
ST is pursuing significant public funding for strategic manufacturing projects, including a €2 billion grant from Italy for a SiC facility in Catania and support from France for a joint 300mm fab in Crolles, aligned with the European Chips Act.
FY2025 net revenues fell 11.1% to $11.8B, gross margin contracted 540 bps to 33.9%, and operating income dropped to $175M including $376M in impairment and restructuring charges.
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Full-year net revenues decreased 11.1% to $11.80 billion, driven by a 6% decline in average selling prices and a 5% decline in volumes, with the Power & Discrete (P&D) falling 31.5%.
fell 540 to 33.9%, primarily due to lower manufacturing efficiencies, unfavorable sales price and mix, and higher .
was $175 million, down from $1,676 million in 2024, weighed down by $376 million in , restructuring, and phase-out costs tied to a company-wide manufacturing footprint and cost-base reshaping program.
Net cash from operating activities was $2,152 million, and (non-U.S. ) was $265 million, as net declined to $1,792 million from $2,531 million in 2024.
Q1 2026 outlook projects net revenues of approximately $3.04 billion at the midpoint, a sequential decrease of 8.7%, and a of approximately 33.7%.