On July 27, STMicroelectronics reported Q2 2026 net revenue of **$3.49 billion**, beating the consensus estimate of $3.46 billion. Net profit came in at $222 million with a gross margin of 34.8% , reflecting broad-based demand recovery across all end markets.

CEO Jean-Marc Chéry noted that order growth was strong across the entire portfolio, with supply visibility improving and select product categories already in tight supply. Distribution inventory levels now sit below the company's own standard targets.

Looking ahead, STMicro expects Q4 revenue to break $4 billion**, driven by **AI data center gear and satellite communication equipment**. The company has raised its full-year data center revenue target to **over $1 billion , with AI-related revenue projected to exceed $2 billion in 2027.

The company is pivoting beyond its traditional automotive and industrial base into the AI compute power chain – with power semiconductors and analog chips benefiting from rising server rack density. STMicro also recently signed a multi-year (3–5 year) power management IC supply agreement with AWS , adding a stable long-term revenue anchor.

From ICgoodFind: STMicro is no longer just an auto/industrial play – AI is now a real growth leg. With data center revenue on track to double, the power semi upside is just beginning.