ST Q1 revenues of $3bn up 23% y-o-y

ST had Q1 revenues at $3.10bn at a gross margin of 33.8% for an operating income of $70m.

For Q2 it expects revenues of $3.45bn at a gross margin of 34.8%.

”Q1 net revenues, excluding the contribution of our acquisition of NXP’s MEMS sensor business, came above the mid-point of our business outlook range, driven mainly by higher revenues in our engaged customer programmes in personal electronics and CECP,” says CEO Jean-Marc Chery (pictured) “Gross margin was above the mid-point of our business outlook range mainly due to better product mix.

“On a year-over-year basis, Q1 net revenues increased 23.0%; excluding the contribution of our acquisition of NXP’s MEMS sensor business, they increased 21.4%,” adds Chery. “Q1 gross margin was 33.8%, operating margin was 2.3% and net income was $37m. On a non-US GAAP1 basis gross margin was 34.1%, operating margin was 5.5% and net income was $122m.

“In Q1, despite the macroeconomic uncertainty, we saw improving demand with strong booking and normalised inventory in distribution,” continues Chery “Our second quarter business outlook, at the mid-point, is for net revenues of $3.45bn, increasing 11.6% sequentially and 24.9% year-over-year. Gross margin is expected to be about 34.8%, including about 100 basis points of unused capacity charges. Non-US GAAP1 gross margin is expected to be about 35.2%.

 “ST is now strategically positioned to capture upside from new AI driven programs, leveraging specialised technologies to enable the evolving AI infrastructure, confirming our datacentres’ revenue expectation to be nicely above $500m for 2026 and well above $1bn for 2027,” concludes Chery.