STMicroelectronics (AO) | Buy | Q2 2026E results preview (23 July before market)

研报英文原文证据摘录

STMicroelectronics (AO) | Buy | Q2 2026E results preview (23 July before market)

#EarningsPreview

Release date: 22 July 2026

Sébastien Sztabowicz

Head of IT Hardware & Semis Research

+33 1 53 65 35 10

ssztabowicz@keplercheuvreux.com

BuySTMicroelectronics

Italy | IT Hardware & Semis Beta Profile: MCap: EUR52.2bn

Target Price: EUR78.00 Bloomberg: STMMI IM Reuters: STMMI.MI

Current Price: EUR57.27 Free float 73%

Up/downside: 36.2% Avg. daily volume (EURm) 777.9

YTD abs performance 154.8% Market data: 21 July 2026

52-week high/low (EUR) 69.35/18.80

Q2 2026E results preview (23 July before market)

Key points:

ST is due to report Q2 results on 23 July before market, and we expect another solid set of results with 21% organic growth, the

adjusted operating margin up by 570bps YOY to 7.8% and resilient FCF (USD38m vs. USD111m of negative FCF a year ago).

We believe ST should deliver a positive outlook for Q3 2026E, and we expect another strong set of results with 17% organic

growth (supported by a broad-based recovery and the acceleration of sales around data centres, and specifically around silicon

photonics and BiCMOS foundry services, and low-earth orbit (LEO) satellite businesses) and the adjusted operating margin

strongly up again by 550bps YOY to 12.3%.

We reiterate our Buy rating (TP EUR78), as the group accelerates into the upcycle with stronger growth prospects around data

centre and LEO satellites, the mid-term outlook remains positive with strong organic growth and margin prospects, while the

valuation is now back to more attractive levels (c. 13x 2026E EBIT, bearing in mind that there is still some upside to estimates

ahead, and the stock could potentially deserve to trade on higher multiples, given stronger growth ahead).

Reporting date 23 July