STMicroelectronics increased third-quarter revenue 17.9% from a year earlier to $3.757 billion, with both reported profit and cash generation improving. Its 29 October 2026 results release also forecast fourth-quarter revenue above the Q3 level, but that remains an outlook rather than completed sales.
The chipmaker reported net income of $291 million and diluted earnings per share of $0.31 for the quarter ended 26 September. Its supplemental non-U.S. GAAP figures were $344 million and $0.37 respectively. Keeping those two accounting bases separate is important when comparing the result with another period or company.
The quarter, on a consistent basis
| Measure | Q3 result | Comparison or qualification | Official evidence |
|---|---|---|---|
| Net revenue | $3.757 billion | Up 17.9% year on year; up 7.7% sequentially | Quarterly financial summary |
| Reported operating profit | $367 million | 9.8% operating margin | U.S. GAAP summary |
| Non-U.S. GAAP operating profit | $429 million | 11.4% operating margin; adjusted measure | Non-U.S. GAAP summary |
| Reported net income / diluted EPS | $291 million / $0.31 | $237 million / $0.26 a year earlier | U.S. GAAP earnings table |
| Non-U.S. GAAP net income / diluted EPS | $344 million / $0.37 | Supplemental, not a replacement for reported earnings | Adjusted earnings and appendix |
What the adjustment removes
Reported operating income includes $55 million of impairment, restructuring and related phase-out costs, plus $7 million of purchase-price-allocation effects from the NXP MEMS sensor-business acquisition. Adding those items back gives $367 million + $55 million + $7 million = $429 million of non-U.S. GAAP operating income.
That is an operating-profit reconciliation, not a direct calculation of adjusted net income: tax and other effects matter at the bottom line. ST cautions that its non-U.S. GAAP measures supplement its accounts and may not be comparable with similarly named measures at other companies.
Cash improved, but performance varied by business
Quarterly operating cash flow was $1.020 billion, compared with $549 million a year earlier. ST reported positive non-U.S. GAAP free cash flow of $351 million. These are cash measures, not alternative labels for the $291 million accounting profit.
The overall improvement was not uniform. RF Optical Communications revenue grew 46.2% year on year, while the Power and Discrete products segment recorded an $81 million operating loss, compared with a $67 million loss a year earlier. Group growth therefore does not establish that every product business became more profitable.
How to read the fourth-quarter outlook
ST’s Q4 revenue midpoint is $4.15 billion, corresponding to about 10.5% sequential growth, with a tolerance of plus or minus 350 basis points. Its gross-margin midpoint is 39.0%, plus or minus 200 basis points. A basis point is one-hundredth of a percentage point.
The outlook assumes an effective exchange rate of approximately $1.14 per euro, including existing hedging contracts. It excludes any impact from potential further changes to global trade tariffs. Readers should treat those assumptions as conditions, not promises that the midpoint will be achieved.
For comparisons with other earnings reports, CapKet’s six-field earnings worksheet helps keep period, units and accounting basis aligned.
Source and scope: The linked release is STMicroelectronics’ own announcement distributed through GlobeNewswire, not an independent news report. It was observed at 2026-10-29T12:23:48.017Z. The same announcement on ST’s investor-relations site was checked at 2026-10-29T12:25:09.594Z; it is a second official location for the same release, not independent corroboration. CapKet has not established a stock-price reaction or a consensus earnings beat. This report was prepared with AI assistance and checked against the issuer record; that process is not independent human editorial approval.
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