STMicroelectronics climbs 8.58% to 40.68 euros this Thursday mid-morning, following the release of its Q1 2026 results. The stock significantly exceeds the 40 euro mark, marking a year-over-year increase of over 124%, and is now trading above its major technical resistance at 37.61 euros.
Today's catalyst is clearly identified: STMicroelectronics unveiled its Q1 accounts this morning, reporting a 23% year-over-year increase in revenue. This business momentum is supported by the integration of MEMS sensor activities acquired from NXP and sustained demand from automotive and industrial equipment manufacturers. However, the revenue growth masks a notable decline in profitability. Diluted net earnings per share came in at $0.04, down from $0.06 a year earlier, a decline of 34%. This downturn is due to restructuring charges of $71 million related to the reorganization of the group's industrial footprint. Despite this erosion of margins, the market applauds the revenue growth trajectory. The day before, JP Morgan had raised its price target from 24 to 38 euros, while maintaining a neutral recommendation—a level now already surpassed by the current price, which displays a premium of 7% over this new target. On a sectoral level, the dynamics are mixed in Europe: ASML is down 2.85% and ASM International falls by 0.48% during the session, while in the United States, Micron Technology closed up 8.48% and AMD advanced 6.67%, signaling a renewed appetite for semiconductor stocks across the Atlantic.
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From a chart perspective, STMicroelectronics' stock shows signs of tension. The price, at 40.68 euros, is above the upper boundary of the Bollinger Bands (39.38 euros), a configuration generally associated with a potential overbought zone. The stock is trading at 109% of the band, indicating an unusual deviation from its short-term average. The RSI, at 77, confirms this interpretation by remaining above the conventional threshold of 70 that defines the overbought zone. After a rally of 65% in three months and over 18% in seven days, the stock has now significantly exceeded its 50-day and 200-day moving averages, located at 29.93 and 24.78 euros respectively. The strong crossing of the old resistance at 37.61 euros is a notable technical event, this level may now act as support. The CAC 40 is up 0.46% in the session at 8,194 points, providing a supportive environment for the Parisian market this Thursday.
« Le chiffre d'affaires du quatrième trimestre a dépassé le milieu de notre prévision et la marge brute a été soutenue par un meilleur mix produit. »
STMicroelectronics a publié ses résultats pour le quatrième trimestre et l'année 2025. Le chiffre d'affaires annuel s'établit à 11,8 milliards de dollars avec une marge brute de 33,9% et un résultat opérationnel de 175 millions de dollars. Le bénéfice net attribuable aux actionnaires pour l'année est de 166 millions de dollars, et le flux de trésorerie disponible (non-U.S. GAAP) pour l'année est de 265 millions de dollars. Pour 2026, le point médian du trimestre est un chiffre d'affaires attendu de 3,04 milliards de dollars et une marge brute d'environ 33,7%.
Risks mentioned
changements dans les politiques commerciales mondiales, y compris les tarifs et barrières commerciaux, susceptibles d'affecter la demande
incertitudes macroéconomiques et inflation, influençant la production et la demande finale
écarts entre la demande client et les projections nécessitant des mesures de transformation
capacité à concevoir, fabriquer et vendre des produits innovants dans un environnement technologique rapide
Outlook / guidance
Expected revenue: Le chiffre d'affaires du premier trimestre 2026 est attendu autour de 3,04 milliards de dollars, en baisse séquentielle d'environ 8,7% et avec une marge brute d'environ 33,7% (plus ou moins 350 pb pour le chiffre d'affaires et plus ou moins 200 pb pour la marge brute).
Management commentary: La direction souligne que les perspectives dépendent des conditions macroéconomiques, des taux de change et du mix produit.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
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