GlobalFoundries reported third‑quarter 2025 revenue of $1.688 billion, a beat of the $1.68 billion consensus estimate, and adjusted earnings of $0.41 per share, surpassing the $0.38 consensus by $0.03. The company’s non‑IFRS gross margin rose to 26.0% and operating margin to 15.4%, both at the high end of the guidance range, underscoring the effectiveness of its product‑mix strategy and cost‑control initiatives.
The quarter’s growth was driven by robust performance in the automotive and communications‑infrastructure segments, which delivered year‑over‑year revenue gains for the fourth consecutive quarter. In contrast, the smart‑mobile‑devices segment declined 13% year‑over‑year, reflecting a shift in customer demand toward higher‑margin industrial and data‑center applications. The mix shift toward silicon photonics and FDX platforms contributed significantly to the margin expansion.
Margin expansion was largely a result of higher pricing power in the silicon photonics and FDX product lines, combined with disciplined cost management that offset modest increases in raw‑material costs. The company’s focus on high‑margin differentiated technologies has allowed it to maintain profitability even as overall revenue slipped slightly from the prior year’s $1.739 billion.
Looking ahead, GlobalFoundries guided for fourth‑quarter revenue of approximately $1.8 billion and adjusted EPS of $0.47, while reaffirming its target of more than $1 billion in adjusted free cash flow for the full year. The guidance reflects management’s confidence in sustained demand for its advanced chip solutions and the continued execution of its capacity‑expansion strategy.
Comparing to prior periods, the company’s Q3 2024 revenue was $1.739 billion and diluted EPS was $0.41, while Q2 2025 revenue matched the Q3 figure at $1.688 billion with EPS of $0.42. The slight revenue decline is offset by margin gains, indicating a strengthening operating profile.
CEO Tim Breen highlighted the quarter as a “strong performance” that “demonstrates the effectiveness of our product‑mix strategy and the momentum in our key growth markets.” Investors responded positively to the earnings beat, margin expansion, and optimistic guidance, viewing the results as evidence of the company’s resilient business model and strategic focus on high‑margin technologies.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.