STMicroelectronics reported second-quarter net revenues of $3.49 billion. This figure represents a 26% year-over-year increase and exceeded analyst expectations. The company posted a net income of $222 million. Earnings reached $0.24 per diluted share. This result marks a significant turnaround from a net loss during the same period last year.
Strong demand in automotive and communications equipment markets drove the quarterly growth. Management raised the revenue outlook for the data center business due to accelerating AI infrastructure demand. The company expects data center revenue to exceed $1 billion in 2026. Forecasts for 2027 project data center revenue surpassing $2 billion.
For the third quarter, the chipmaker anticipates net revenues of approximately $3.70 billion. The company projects a gross margin of roughly 37.0% for the upcoming period.