STMicroelectronics (NYSE:STM) reported a return to modest year-over-year revenue growth in its fourth quarter, though the recovery was marred by a slump in its core automotive business and significant restructuring costs.
The Geneva-based semiconductor giant posted fourth-quarter net revenue of $3.33 billion, a 0.2% increase that narrowly topped its own mid-point guidance.
However, the company swung to a GAAP net loss of $30 million, compared to a profit of $341 million a year ago, weighed down by $141 million in impairment and phase-out charges.
The results highlight the divergent fortunes within the chip sector.
While STMicro saw double-digit growth in its radio frequency and optical communications segment, its Power and Discrete products division—the engine of its electric vehicle (EV) strategy—saw revenue plunge 31.6% and recorded a $124 million operating loss.
Looking to 2026, the company is doubling down on cost-cutting and manufacturing efficiency.
STMicro plans to invest between $2 billion and $2.2 billion in capital expenditures this year to reshape its footprint, even as it projects a sequential revenue decline of nearly 9% for the first quarter.
With gross margins expected to remain compressed at roughly 33.7%, the company is banking on a late-2026 recovery in industrial microcontrollers to offset the near-term headwinds in the auto supply chain.