STMicroelectronics Forecasts Fourth-Quarter Revenue of $4.15 Billion, Above Analyst Estimates
Key Facts
STMicroelectronics forecast revenue of $4.15 billion in the fourth quarter of 2026, above the analyst consensus of $4.10 billion, according to Reuters via Euronext. The guidance follows revenue of $3.76 billion in the third quarter and includes a margin of variation of 3.5%. In July, the company said fourth-quarter sales would exceed $4 billion, making the new forecast an increase on that earlier guidance. The comparison with market estimates puts the company’s performance against analysts’ expectations for the coming period. The company also pointed to improving demand across several sectors in the third quarter, with data centers among the growth drivers.
The improvement in the third quarter was not limited to revenue: operating income, excluding one-off items, came to $429 million, up 98% from a year earlier. That figure was above the analyst consensus of $400.5 million, according to Reuters via Euronext. The company attributed revenue exceeding the midpoint of its forecast range to higher sales of communications equipment, computer peripherals and personal electronics. These factors show a widening range of support during the quarter, alongside data center-related demand. Operating performance allows a direct comparison between the company’s result and market expectations for the third quarter.
In data centers, the company raised its 2026 revenue forecast to about $1.3 billion, from a July forecast of more than $1 billion. It kept its 2027 target at well above $2 billion, according to Reuters via Euronext. The chief executive said demand in this business is driven mainly by silicon photonics chips, which use light instead of electrical signals to transfer data between servers. That puts server interconnect technology at the heart of the expansion the company expects in data center sales. The higher 2026 estimate also reflects an increase from what it announced in July, while the higher target for the following year remains in place.
The forecast update coincided with the company’s ongoing efforts to reshape its manufacturing footprint and reset its global cost base, with a stated focus on improving profitability. These steps stand alongside cyclical demand and sales of communications equipment and personal electronics, not as completed changes but as an ongoing program for the company. Demand drivers also include growth in AI data centers and low-Earth-orbit satellite communications, according to factors outlined by management. The combination of expanding production capacity and reshaping manufacturing makes the path to profitability a parallel focus alongside revenue growth. The company’s shares closed at $48.52 on October 28, 2026, according to EL7 data.
The market is also looking ahead to 2027: Jefferies analysts expect the company to continue growing that year, with data center revenue roughly doubling from 2026, according to Reuters via Euronext. That forecast is consistent with the company keeping its 2027 data center revenue target at well above $2 billion. Fourth-quarter guidance will be a near-term test of whether the demand described by the company translates into revenue within the range it set. At the business level, management links part of the demand to silicon photonics chips used to transfer data between servers. The manufacturing reshaping and cost-base reduction program remains part of the path the company has announced to improve profitability.