Q2 sales rise 26%, strong bookings, and AI data-center growth boost outlook to 2027

STMicroelectronics reported a 26% year-on-year sales increase in Q2, along with improved gross margins, positive free cash flow, and a strong net cash position. The company sees better visibility into 2027 due to strong bookings, a book-to-bill ratio above 1, and normalized inventories, with growing demand in automotive and industrial sectors. AI data-center sales are expected to exceed $1 billion in 2026 and more than double in 2027, while satellite communications also contribute to growth. These factors support higher earnings expectations and a Buy rating despite a more conservative valuation approach.

STMicroelectronics shares are trading at USD 53.16 on Pluang as of Sep 30, 2026 21:02 WIB, slightly down 0.15% for the day. The stock's market cap stands at $47.70 billion, reflecting its significant presence in the technology sector. Despite the recent positive sales and growth outlook, Pluang order activity shows a full 100% sell interest at this time.