STMicro lifts data centre revenue forecast after Q3 profit beat
STM•STMicroelectronics raised its 2026 data centre revenue forecast to about $1.3 billion from more than $1 billion, after third-quarter operating income excluding one-off charges beat expectations at $429 million. It expects fourth-quarter revenue of $4.15 billion, give or take 3.5%.
1. Higher data centre outlook
STMicroelectronics now expects about $1.3 billion in data centre revenue in 2026, up from its July forecast of more than $1 billion, and reiterated its 2027 goal of well above $2 billion. CEO Jean-Marc Chery said demand was driven mainly by silicon photonics chips, which use light rather than electrical signals to move data between servers.
2. Quarterly results and forecast
Third-quarter operating income excluding one-off charges was $429 million, nearly double the year-earlier figure and above the $400.5 million expected by analysts polled by LSEG. Fourth-quarter revenue is forecast at $4.15 billion, up from $3.76 billion in the third quarter, give or take 3.5%; analysts had expected $4.10 billion.
3. Margins and shares
Gross margin rose to 37.3% from 33.2% a year ago, helped by a higher share of sales from more profitable chips and lower costs from idle factory capacity. STMicro expects fourth-quarter gross margin of about 39%. Shares opened 3.7% lower and were slightly positive by 0935 GMT.
