STMicroelectronics Q1 Revenue Up 23% to $3.10B; AI Sales to Top $1B by 2027
STMicroelectronics posted Q1 revenue of $3.10 billion, up 23% year-over-year, topping its $3.04 billion guidance and the $3.06 billion analyst consensus. It reported net profit of $37 million, a 33.8% gross margin, and sees Q2 revenue of $3.45 billion with AI sales to exceed $1 billion by 2027.
1. Q1 Financial Results
STMicroelectronics reported Q1 revenue of $3.10 billion, a 23% increase year-over-year, surpassing its internal guidance of $3.04 billion and the analyst consensus of $3.06 billion. Strength came from personal electronics, computing peripherals and AI infrastructure build-out.
2. Profitability and Margins
Net profit for the quarter was $37 million, down from $56 million a year ago, while gross profit rose to $1.05 billion, lifting gross margin to 33.8%. Operating income reached $171 million, above the $165.8 million estimate, reflecting efficiency gains despite softer net earnings.
3. Outlook and AI Strategy
The company forecasts Q2 revenue around $3.45 billion with gross margin increasing to 34.8%. It expects AI data-center sales to exceed $500 million this year and top $1 billion by 2027, positioning STMicroelectronics to benefit from rising AI infrastructure demand.