STMicroelectronics jumps nearly 5% after Q1 revenue beat and upbeat Q2 outlook
STMicroelectronics shares rose about 5% after Q1 2026 results showed net revenue of $3.10B (+23% YoY), ahead of expectations. The company also guided Q2 revenue to about $3.45B at the midpoint (+11.6% QoQ), signaling accelerating demand into mid-2026.
1. What’s moving the stock today
STMicroelectronics (STM) is rallying after reporting first-quarter 2026 results that topped revenue expectations and pairing them with a stronger-than-feared second-quarter outlook. The company reported Q1 net revenues of $3.10 billion and guided Q2 net revenues to $3.45 billion at the midpoint, implying a solid sequential re-acceleration that is helping investors look past near-term profitability pressure.
2. Key numbers investors are reacting to
Q1 net revenues were $3.10 billion, up 23.0% year over year, alongside a gross margin of 33.8%, operating income of $70 million, and net income of $37 million. For Q2 2026, the midpoint outlook calls for net revenues of $3.45 billion, up 11.6% sequentially and 24.9% year over year, reinforcing the view that demand is improving into the middle of 2026.
3. What it means for the next quarter
The Q2 revenue guide is the headline catalyst because it suggests better volume and/or mix after a seasonally softer start to the year. Traders are treating the outlook as confirmation that STM’s multi-end-market exposure—spanning industrial, automotive, personal electronics, and communications equipment—can translate into sustained top-line momentum even as the company manages restructuring and other costs.