STMicro Lifts 2026 Data-Centre Revenue Forecast After Q3 Profit Beat

STMicroelectronics raised its forecast for 2026 data-centre revenue to about $1.3 billion on Thursday, up from its July projection of more than $1 billion, after demand from data centres and satellite operators helped the chipmaker beat third-quarter profit expectations.

Data-centre demand supports the outlook

Chief Executive Jean-Marc Chery told analysts that demand was driven mainly by silicon photonics chips, which use light rather than electrical signals to transfer data between servers. STMicro also reiterated its 2027 target of well above $2 billion in data-centre revenue.

The company identified AI data centres and low-Earth-orbit satellite communications among its growth drivers. Chery said company-specific factors were adding to a cyclical recovery across the markets ST serves.

Quarterly profit beats expectations

STMicro reported third-quarter revenue of $3.76 billion, gross margin of 37.3%, operating income of $367 million and net income of $291 million. Excluding one-off charges, operating income reached $429 million, nearly twice the year-earlier figure and above the $400.5 million average estimate from analysts polled by LSEG.

Fourth-quarter sales forecast tops $4 billion

For the fourth quarter, STMicro forecast revenue of $4.15 billion at the midpoint, with a range of 3.5% either way. That compares with $3.76 billion in the third quarter and a $4.10 billion analyst estimate. It expects gross margin of about 39%, compared with 37.3% in the latest quarter.

Higher sales of communication equipment, computer peripherals and personal electronics contributed to the third-quarter result. The company said demand remained above supply and it was continuing to expand capacity.

Sources: Reuters report; STMicroelectronics Q3 2026 results