STMicroelectronics reported an 11.1% revenue decline in 2025 following a more severe 23.2% drop in 2024, driven by falling volumes and ASP reductions across segments. Gross margin contracted by 540 basis points due to manufacturing inefficiencies and product mix pressures. Despite financial headwinds, STM's strategic multi-year collaboration with Amazon Web Services aims to position it as a key supplier of high-performance semiconductors for cloud and AI data centers. Capital allocation balanced dividends with significant buybacks and a sharp surge in capex to support manufacturing upgrades.