STMicro raises data-centre expectations after profit miss, shares tank
STM•Q2 revenue beat expectations as profit was hit by charges
"During the quarter demand increased further, with strong bookings in all end markets. We saw improved visibility and signs of tight supply in several product categories," STMicro CEO Jean-Marc Chery said in a statement.
"We anticipate a revenue growth acceleration in Q4, mainly driven by our engaged customer programs in AI datacenters and LEO satellite communication. We expect Q4 revenues to be above $4 billion," he added.
The company reported second-quarter revenue of $3.49 billion, ahead of analysts' average estimate of $3.39 billion, according to LSEG data.
However, its earnings before interest, taxes, depreciation and amortization were $679 million, well below market expectations of $797.7 million.
STMicro said the hit to profit came from impairment, restructuring and other phase-out costs. It also cited accounting effects from its acquisition of an NXP NXPI.O sensor business.
The company raised its revenue ambition for data centres, saying it now expected the business to generate more than $1 billion in 2026 and well above $2 billion in 2027, assuming current demand trends and customer engagements continue.
