$STMicroelectronics (STM.US)$ STMicroelectronics has announc...

STMicroelectronics has announced its financial targets during its Capital Markets Day in Paris. The company has set an intermediate financial model targeting revenues of approximately $18 billion with an operating margin of 22-24% for 2027-2028. ST has also reiterated its longer-term $20 billion+ revenue ambition, now expected by 2030.

Through its manufacturing reshaping program and cost base resizing initiative, ST anticipates achieving high triple-digit million-dollar savings by 2027 compared to current costs. The company maintains its focus on sustainable and profitable growth, aiming for a gross margin of 44-46% and free cash flow margin of ~20% in the intermediate period.

STMicroelectronics has outlined an ambitious but realistic growth trajectory, targeting $18 billion in revenue by 2027-2028 with operating margins of 22-24%, before reaching $20+ billion by 2030. The planned manufacturing reshaping and cost-cutting initiatives should yield high triple-digit million-dollar savings, significantly boosting profitability. The intermediate model projects healthy margins with gross margins of 44-46% and free cash flow margins around 20%.

The company's focus on sustainable growth and market differentiation, particularly in analog, power, discrete components, MEMS and microcontrollers, positions it well in high-growth segments. The planned cost optimization and manufacturing improvements indicate a strategic shift toward higher operational efficiency, which should strengthen competitive positioning against peers like Infineon and NXP.