STMicroelectronics released a Q2 2026 earnings call transcript featuring President & CEO Jean-Marc Chery and President & CFO Lorenzo Grandi.
Q2 net revenue was USD 3.49 billion; gross margin was 34.8%; non-U.S. GAAP EPS was USD 0.31; free cash flow was USD 75 million; balance-sheet inventory was flat.
Demand accelerated; book-to-bill was near 2 overall and above 2 in CECP on optical connectivity, including silicon photonics; management cited tighter supply signals.
Raised datacenter outlook and quarterly guidance
Datacenter revenue ambition was raised to above USD 1 billion in 2026 and well above USD 2 billion in 2027, driven by optical connectivity traction.
Q3 outlook: revenue of USD 3.7 billion ± 350 bps; gross margin of about 37% ± 200 bps.
Q4 revenue was expected to be above USD 4 billion on AI datacenters and LEO satellite programs.
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