Investment Rating - The report does not explicitly provide an investment rating for STMicroelectronics, but it highlights weak performance and lower-than-expected guidance for future quarters, indicating a cautious outlook for the stock. Core Insights - STMicroelectronics reported weak 2Q25 results, with revenue of $2.77 billion, meeting market expectations, but EPS of -$0.11 significantly missed the consensus estimate of $0.09 [1][7] - For 3Q25, the company guides revenue between $3.07 billion and $3.27 billion, with a midpoint of $3.17 billion, representing a 14.6% QoQ growth but a 2.5% YoY decline [4][10] Summary by Sections Revenue Performance - In 2Q25, STMicroelectronics achieved a 9.9% QoQ revenue increase but a 14.4% YoY decline. All end markets saw sequential growth, with automotive revenue down 24% YoY but up 14% QoQ, driven by Asia Pacific and the Americas [2][8] - The industrial market saw an 8% YoY decline but a 15% QoQ increase, confirming that 1Q25 was the cyclical trough. Personal electronics and communication equipment also experienced slight declines [2][8] Profitability - The gross profit for 2Q25 was $926 million, a 28.5% YoY decline, with a gross margin of 33.5%, down 660 bps YoY due to unfavorable product mix and lower manufacturing efficiency [3][9] - Operating loss was $133 million, including $190 million in impairment and restructuring charges. Non-GAAP operating margin for the quarter was +2.1% [3][9] Future Guidance - For 3Q25, the company expects all end markets except automotive to return to YoY growth, with gross margin guidance of 33.5% ± 200 bps, impacted by idle capacity costs and non-recurring costs related to manufacturing reorganization [4][10] - The FY2025 capital expenditure plan is maintained at $2.0 billion to $2.3 billion, primarily for manufacturing transformation efforts [4][10]