Q2 2025 Financial Performance: STMicroelectronics reported revenues of $2.77 billion for Q2 2025, exceeding forecasts by $56 million. Despite a 24% year-over-year decline in Automotive, other sectors, notably Personal Electronics and Industrial, showed growth, with overall revenues falling only 2.5% year-over-year, signaling potential stabilization across various markets.

Gross Margin Challenges: The gross margin for Q2 was 33.5%, down 660 basis points compared to the previous year, primarily due to a negative product mix and higher unused capacity charges. For Q3, gross margin is projected to remain stable but impacted by ongoing costs from a manufacturing reshaping program and unfavorable currency effects, signaling short-term profitability pressure.

Q3 2025 Outlook: STMicroelectronics expects Q3 revenues to increase by 14.6% sequentially to approximately $3.17 billion, with all markets except Automotive expected to show year-over-year growth. This indicates a recovery driven by improved customer engagement and a favorable market environment, although Automotive sector challenges persist.