GlobalFoundries reported third‑quarter 2025 results that surpassed consensus estimates. Revenue reached $1.688 billion, a 0.48 % beat on the $1.680 billion consensus, while GAAP earnings per share climbed to $0.44, topping the $0.38 estimate by $0.06. The company’s adjusted EPS of $0.41 also exceeded the $0.38 consensus by $0.03, a 7.9 % beat. Gross margin expanded to 24.8 % GAAP and 26.0 % non‑IFRS, driven by a favorable product mix and higher wafer volumes that offset lower average selling prices.
Revenue growth was uneven across segments. Automotive and communications infrastructure & data‑center markets grew 20 % and 32 % YoY, respectively, reflecting strong demand for electric‑vehicle silicon and AI‑driven data‑center processors. In contrast, legacy processor sales declined, contributing to the modest 3 % YoY revenue decline from $1.739 billion in Q3 2024 to $1.688 billion in Q3 2025.
CEO Tim Breen highlighted the company’s execution, noting that the quarter delivered “strong year‑over‑year revenue growth in both our Automotive and Communications Infrastructure and Data Center end markets.” He added that margin expansion was a result of “driving the product mix and profitability of our business” and that momentum in silicon photonics and FDX platforms was a key growth driver.
Looking ahead, GlobalFoundries guided for fourth‑quarter revenue of approximately $1.8 billion, up from the $1.688 billion reported in Q3, and an adjusted EPS of $0.47 ± $0.05, well above the $0.38 consensus. The guidance signals management confidence in sustained demand from high‑growth segments and the continued success of its differentiated foundry strategy.
Investors reacted positively to the earnings beat and margin expansion, with analysts noting that the company’s ability to maintain profitability amid a 3 % revenue decline underscores its operational resilience. Headwinds such as uneven demand for legacy processors and lower average selling prices were acknowledged, but the company’s focus on automotive, data‑center, and silicon photonics is positioned to offset these challenges.
Strategic investments continue to underpin GlobalFoundries’ growth trajectory. The company completed the acquisition of MIPS Holdings for $226 million, expanded capacity at its Dresden facility to over one million wafers annually by 2028, and is investing heavily in silicon photonics, a business projected to exceed $200 million in 2025 and become a billion‑dollar‑plus venture by 2030.
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