European chipmaker STMicroelectronics signaled improved business visibility for 2026, forecasting first-quarter revenue slightly above market expectations as key end markets begin to recover. The company said demand conditions are stabilizing after a prolonged slowdown that followed the post-pandemic normalization period.
STMicro projected first-quarter revenue of around $3.04 billion, exceeding last year’s level and analyst expectations of $2.99 billion. The outlook supported a positive reaction in early trading, reflecting investor optimism about gradually improving trends in automotive, industrial, and consumer electronics markets.
Despite the brighter outlook, profitability remains under pressure. The company reported fourth-quarter net income of $125 million, well below market forecasts. Results were weighed down by $141 million in restructuring-related impairment charges. Excluding these costs, net income would have reached $266 million.
STMicro is currently restructuring its European manufacturing footprint, shifting production away from older facilities in France and Italy toward more advanced sites. Management warned that restructuring-related costs will continue to affect results throughout 2026, although operational charges are expected to decline over time.
Executives said easing inventory corrections and lower operational costs should support margin improvement during the year, positioning the company for more stable performance despite ongoing transformation efforts.
