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STMicroelectronics Q3 2026 Financial Results October 29, 2026
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Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors: • changes in global trade policies, including the continuation, adoption and expansion of tariffs and trade barriers and sanctions, that are affecting and could further affect the macro-economic environment and are adversely impacting and could further adversely impact the demand for our products; • uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which are impacting and may further impact production capacity and end-market demand for our products; • customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all; • the ability to design, manufacture and sell innovative products in a rapidly changing technological environment; • changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities; • unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our research and development and manufacturing programs, which benefit from public funding; • financial difficulties with any of our major distributors or significant curtailment of purchases by key customers; • the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers; • availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation); • the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; • theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation; • the impact of intellectual property claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions; • changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets; • variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations; • the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant; • product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts; • natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate; • increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027; • epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results; • industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; • the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and • individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances. Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our SEC filings, could have a material adverse effect on our business and/or financial condition. Forward looking information 2
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Highlights 3 *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. • Net revenues of $3.76B increased 17.9% Y/Y and 7.7% Q/Q. Revenues came above the mid-point of our business outlook range, driven by higher revenues in CECP and Personal Electronics. • Gross margin was 37.3% above the mid-point of our business outlook range • Operating margin was 9.8%, net income was $291M and EPS $0.31. On a Non-U.S. GAAP* basis, operating margin was 11.4%, net income was $344M and EPS $0.37. Q3 2026 • Outlook at mid-point is for net revenues of $4.15B, increasing 24.7% Y/Y and 10.5% Q/Q. • Gross margin expected to be about 39.0% at the mid-point. Q4 2026 • Q426 revenue mid-point translates into FY26 revenues of $14.5B, up 22.8% Y/Y. Beyond the cyclical recovery across our end markets, the Y/Y growth is supported by ST's company specific growth drivers, including AI datacenters and LEO satellite communication. • Gross margin is expected to be 36.4%, non-U.S. GAAP* gross margin is expected to be 36.6%, up 270 bps vs FY25. • In Q3, demand increased further supported by strong bookings and improving visibility, while inventory in distribution continued to track below our standard target. These indicators confirm the continued ongoing recovery and secular growth across the markets we serve • Demand remains well above supply; we continue to expand capacity aligned with ST’s strategic roadmap. • We remain focused on improving profitability consistent with our intermediate financial model. This is driven by our company-specific growth drivers and the execution of our company-wide program to reshape our manufacturing footprint and resize our global cost base. 2026
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Q3 2026 Business dynamics Automotive 4 Automotive MEMS sensor business Awards for telematics, cockpit control, and tire- pressure monitoring Design wins across hybrid, electric, and internal combustion engine vehicles Onboard charging, powertrain, active suspension, and 48V electro-mechanical braking
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Q3 2026 Business dynamics Industrial 5 Demonstration with NVIDIA at Embedded World North America. Illustrating our broad cooperation on robotics, based on inertial sensors, microcontrollers & imaging solutions. Strong pipeline of STM32 product and software innovations. More to come at our STM32 Summit on Nov 3rd, followed by a dedicated STM32 analyst call on Nov 18th.
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Q3 2026 Business dynamics Personal electronics 6 Design wins with secure solutions, MEMS, and imaging sensors and microcontrollers across a variety of devices including smartphones, gaming headsets, earbuds, and smart rings.
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Q3 2026 Business dynamics Communications Equipment & Computer Peripherals 7 Datacenter revenue Expectations of about $1.3B for 2026 Ambitions well above $2B for 2027* *assuming the current dynamic continues and with the current engagements we have
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42% 13% 32% 13% 0.1% Q3 2026 Revenues dynamic Analog, Power & Discrete, MEMS and Sensors (APMS) Microcontrollers, Digital ICs and RF products (MDRF) % by reportable segments Others Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Embedded Processing (EMP) RF & Optical Communications (RF&OC) Automotive Industrial Personal electronics Communications equipment & computer peripherals % by end market 35% 24% 22% 19% +5%Y/Y +40%Y/Y -4%Y/Y +64%Y/Y +8.8%Y/Y +11.3%Y/Y +24.1%Y/Y +46.2%Y/Y +0% Q/Q +12% Q/Q +12% Q/Q +14% Q/Q +9.4% Q/Q +2.8% Q/Q +5.7% Q/Q +13.4%Q/Q 8
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Gross margin 9 Q426 Gross Margin Outlook about 39.0% (+/- 200 bps) Q326 Gross Margin = 37.3% Q326 Gross Margin • Up 410 bps Y/Y , mainly due to lower unused capacity charges and better product mix. • Up 250 bps Q/Q • Above the mid-point of ST’s guidance. 0% 10% 20% 30% 40% Q325 Q425 Q126 Q226 Q326 Q426E US GAAP guidance midpointUS GAAP Actual
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Path to margin expansion, starting from the approximately 39.0% gross margin expected for Q426 10 Clear path to 44-46% gross margin Committed to 44% - 46% intermediate financial model gross margin, once manufacturing reshaping plan completed. Q426 temporary headwinds, incl. ~40bps unused capacity charges and ~30bps non-recurring costs associated with manufacturing reshaping program, to largely disappear during H227. More than 400bps of structural gross margin improvement from manufacturing footprint reshaping. This will materialize end 2027/ early 2028, subject to the shutdown of legacy fabs and customers’ qualification timing. Better mix and price to contribute to margin expansion over time, while input cost increase expected to be a headwind. Timing and magnitude of these effects is more difficult to assess.
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Net operating expenses* 11 Q326 Net Operating Expenses = $979M Q326 Non-U.S. GAAP** Net Operating Expenses = $972M Q326 Non-U.S. GAAP** net Opex at $972M • 25.9% of revenues • better than the indication we gave in July, reflecting continuing cost discipline Q426 Non-U.S. GAAP** Net Operating Expenses Outlook about $1.035B 20% 25% 30% 35% -100 100 300 500 700 900 1100 Q325 Q425 Q126 Q226 Q326 SG&A R&D OIE, net Net OPEX % *Net Opex = R&D + SG&A + Other expenses (− Other income), excluding impairment, restructuring and phase-out costs. **Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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Q3 2026 Operating margin and net income 12 Non-U.S. GAAP Operating Margin* = 11.4% Non-U.S. GAAP Net Income* = $344M 0% 5% 10% 15% Q325 Q226 Q326 0 100 200 300 400 Q325 Q226 Q326 *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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Q3 2026 Cash flow & balance sheet highlights 13*Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. ** Q126 Free cash flow includes $895M cash-out related to the acquisition of NXP MEMS sensor business. Cash dividends paid to stockholders totaled $83M in Q326. In Q326 we repurchased shares totaling $91M. 0 400 800 1,200 Q325 Q425 Q126 Q226 Q326 Net Cash From Operating Activities = $1,020M 10% 15% 20% 25% 30% 0 250 500 750 1,000 Q325 Q425 Q126 Q226 Q326 Capex / sales (%) Net Capex* = $643M -750 -500 -250 0 250 500 Q325 Q425 Q126** Q226 Q326 Free Cash Flow* = $351M 100 110 120 130 140 150 3.0 3.1 3.2 3.3 Q325 Q425 Q126 Q226 Q326 in days of sales Inventory = $3.25B & DOI = 126 Days
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Solid capital structure 14 *Adjusted net financial position, taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.27B as of Sep 27, 2025, $1.70B as of Jun 27, 2026, and $1.81B as of Sep 26, 2026. **Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. ST is in a very solid position from a capital, liquidity and balance sheet perspective. ST credit rating is BBB+ with Negative Outlook from S&P and Baa1 with Stable Outlook from Moody’s. $4.78B $6.03B $5.31B $2.17B $4.03B $3.21B $2.61B $2.01B $2.11B Q325* Q226* Q326* Liquidity Debt Net Financial Position** For the early redemption of its 2027 convertible bond during Q3, ST settled the bond through $750M in cash and approximately 4.2M treasury shares.
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2027 calendar days by quarter 15 Q127 Q227 Q327 Q427 86 days 91 days 91 days 97 days
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Q4 2026 Outlook 16 The fourth quarter will close on December 31, 2026. This outlook is based on an assumed effective currency exchange rate of approximately $1.14 = €1.00 for Q426 and includes the impact of existing hedging contracts. This business outlook does not include any impact for potential further changes to global trade tariffs compared to current situation. Net Revenues Q426 outlook, at the mid-point, is for net revenues of $4.15B, increasing Y/Y by 24.7% and Q/Q by 10.5%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 39.0%, +/- 200 bps.
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FY 2026 17 Mid-point of Q4 outlook translates into FY26 revenues of $14.5B, representing a 22.8% Y/Y increase. Gross margin to be about 36.4%. Non-U.S. GAAP* gross margin to be about 36.6%, representing an improvement of 270bps vs FY25. Beyond the cyclical recovery across our end markets, Y/Y growth supported by ST's company specific growth drivers, including AI datacenters and LEO satellite communication. *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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Takeaways 18 Strong demand for our AI datacenter and LEO satellite products, alongside recovery in automotive and industrial. As demand exceeds supply in several markets, we are expanding capacity in line with our strategic roadmap. Improving profitability, toward our intermediate financial model, remains a key priority, supported by our growth drivers and the continued execution of our manufacturing footprint reshaping and global cost base resizing.
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Corporate developments 19 Earlier this month, the ST SVB proposed extending my mandate by one year. My reappointment as Chairman of the Managing Board and ST’s President and CEO will be submitted for shareholder approval at the 2027 AGM. Updates to ST’s organization to strengthen the coordination between our strategy, technology and product roadmaps, accelerate innovation and time-to-market, ultimately supporting our long-term growth opportunities. Rémi El-Ouazzane confirmed as President, member of the Executive Committee, Head of MDRF Products. He will also take on leadership of the Imaging Sensors Sub-Group and be appointed ST Chief Technology Officer. Marco Cassis confirmed as President, member of the Executive Committee, Head of APMS Products. He will also take on leadership of R&D for Analog, Power & Discrete and MEMS technologies and be appointed ST Chief Strategic Officer. The new organization and the related adjustment to our reportable segments will take effect on January 1, 2027, with implementation of the changes to be completed by the end of March 2027. Earlier this month, the ST SVB proposed extending Jean-Marc Chery mandate by one year. His reappointment as Chairman of the Managing Board and ST’s President and CEO will be submitted for shareholder approval at the 2027 AGM.
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Q&A session
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