STMicroelectronics Reports Third-Quarter Revenue Growth Driven by AI

STMicroelectronics reported third-quarter revenue of $3.76 billion, a 17.9% increase from the previous year. The result exceeded the company's guidance midpoint of $3.70 billion. Operating income rose 98% to $429 million, while gross margins increased to 37.3% due to a better product mix and lower unused-capacity charges.

Chief Executive Jean-Marc Chery attributed the recovery to stronger bookings and improving demand visibility. The company cited a cyclical recovery in end markets and expanding demand for artificial intelligence infrastructure, AI data centers, and low-Earth-orbit satellite communications as primary growth drivers.

Looking ahead, the chipmaker forecast fourth-quarter revenue of $4.15 billion at the midpoint, a 24.7% year-over-year increase. For the full year 2026, the company projects revenue of approximately $14.5 billion, representing a 22.8% increase from 2025. To enhance profitability, the company plans to expand capacity while restructuring its manufacturing footprint and reducing global costs.