❯ STMicroelectronics grows revenue 17.9% and forecasts further fourth-quarter expansion

Growth with distinct profit measuresSTMicroelectronics’ October 29 announcement reported $3.757 billion of quarterly revenue, up 17.9%, and U.S. GAAP operating income of $367 million. Excluding impairment, restructuring and acquisition-accounting effects, adjusted operating income was $429 million, up 98%.

Recovery and newer applications contributeST said bookings and demand visibility improved, distributor inventories remained below normal targets and gross margin reached 37.3%. RF and Optical Communications revenue grew 46.2%, while Embedded Processing grew 24.1%. The company also identified AI data centers and low-Earth-orbit satellite communications as company-specific growth drivers. The results combine cyclical recovery with demand from newer applications.

Further revenue and margin expansionST forecasts fourth-quarter revenue of $4.15 billion at the midpoint, approximately 10.5% above Q3 and 24.7% above a year earlier, with gross margin around 39%. It plans capacity expansion aligned with its roadmap and changes to manufacturing and costs. Better utilization and product mix provide a concrete route for stronger demand to support margins.

▮ SIGNALSupporting-chip suppliers are benefiting from recovering end markets and newer data-center demand, with utilization and product mix helping translate sales into margins.