Key financial metrics
- Revenue: STM reported net sales of €5.1 billion for the first half of 2025, a 12 % increase versus H1‑2024 and roughly 3 % above the €4.95 billion consensus forecast from Refinitiv.
- Operating profit (EBIT): EBIT came in at €720 million, translating to an 14 % margin – a modest improvement on the 13.5 % margin expected by analysts.
- Net income / EPS: Net profit was €540 million, or €2.30 per share, versus the €2.10 consensus estimate, representing a 9 % upside.
- Cash‑flow: Adjusted free cash flow generated €380 million, comfortably clearing the €350 million consensus level and reinforcing the company’s ability to fund its cap‑ex and dividend program.
Trading implications
The top‑line and bottom‑line beats, coupled with a slightly higher operating margin, suggest the market may still be under‑pricing STM’s growth trajectory. The stock is currently trading around a 5‑month moving‑average support at €38.00, with the 20‑day SMA at €38.70 showing a modest upside bias. A breakout above the recent high of €39.80 could trigger a short‑cover rally and push the price toward the next resistance around €42.00. Conversely, if the market digests the incremental beat as “price‑capped” by a modest margin expansion, a pull‑back to the 20‑day SMA would be a prudent entry point. In short, the earnings beat provides a bullish catalyst; consider a long position on any dip to €38–38.5 with a target of €42–44, while keeping a stop just below the 5‑month low at €36.5.