07:52 AM EDT, 04/23/2026 (MT Newswires) -- STMicroelectronics (STMPA.PA, STMMI.MI) delivered a 23% year-over-year jump in revenue in the first quarter, supported by its recently completed acquisition of NXP Semiconductors'(VNX.F) microelectromechanical systems sensor business in February.

As of early Thursday afternoon, the company's shares were up 7% in Milan and Paris.

The semiconductor manufacturer's US GAAP net revenue climbed to $3.10 billion in the three months ended March 28 from the year-ago $2.52 billion, including $40 million in revenue contributed by the MEMS sensor business. Excluding this contribution, net revenue was up 21.4% on an annual basis.

Gross profit also rose over the period to $1.05 billion from $841 million, with $11 million purchase price allocation effects from the acquisition taken into account. Gross margin stood at 33.8%, up by 40 basis points.

Operating income surged to $70 million from $3 million, including impairment, restructuring charges and other related phase-out costs of $71 million for the quarter. On the other hand, net income attributable to parent company stockholders fell to $37 million from $56 million. All metrics are under US GAAP.

"Q1 net revenues, excluding the contribution of our acquisition of NXP's MEMS sensor business, came above the mid-point of our business outlook range, driven mainly by higher revenues in our engaged customer programs in Personal electronics and CECP. Gross margin was above the mid-point of our business outlook range mainly due to better product mix,"President and Chief Executive Officer Jean-Marc Chery said in an earnings release.

For the second quarter, STMicroelectronics'business outlook, at the midpoint, is for net revenue to reach $3.45 billion, up 24.9% on a yearly basis. Looking further ahead, the company confirmed its datacenters revenue expectations to stand "nicely above"$500 million in 2026 and well above $1 billion in 2027 on the back of anticipated upside from new artificial intelligence-driven programs.

"Demand indicators are improving, AI-related revenue visibility is rising rapidly, and inventory normalisation removes a major cyclical headwind,"analysts at AlphaValue/Baader Europe said in a note. "The company's exposure to AI infrastructure, automotive electrification, industrial automation, and silicon photonics creates multiple structural growth drivers that support management's expectation for double-digit revenue growth in 2026."

The outlook comes as the group expects a "strong"momentum in AI in the coming quarters. When asked in a media call about any investment plans on activities or potential acquisitions related to AI, Chery said there is always the possibility of small acquisitions from time to time, but the company does not currently intend to make any significant transactions in the field.