STMicroelectronics CEO Expects Stable Start to 2026 as Inventory Pressures Ease
STMicroelectronics Chief Executive Jean-Marc Chery said on Wednesday he expects the chipmaker’s first-quarter 2026 revenue to remain at typical seasonal levels, signaling a steady recovery following a weaker-than-expected rebound this year.
Speaking at a Morgan Stanley conference, Chery forecast that first-quarter revenue would decline 10% to 11% from the upcoming fourth quarter, which the company projects at $3.28 billion. However, that still represents around 20% year-on-year growth, highlighting progress in clearing customer inventory.
“This is positive news confirming that we are almost free of material inventory correction,” Chery said, suggesting that the company’s prolonged inventory adjustment cycle is largely behind it.
Analysts surveyed by LSEG expect first-quarter revenue to reach $2.98 billion, in line with Chery’s guidance and roughly 10% lower than the previous quarter.
STMicroelectronics, one of Europe’s largest semiconductor manufacturers, has faced a slow recovery in demand from the automotive, industrial, and consumer electronics markets after an extended downturn marked by excess stockpiling across its customer base.
Shares of the company rose 1.4% at 1113 GMT following Chery’s comments, as investors welcomed signs of a normalization in supply and demand dynamics heading into 2026.