GlobalFoundries (GFS) Tops Q3 Estimates and Lifts Q4 2025 Outlook

GlobalFoundries Inc. (GFS) has reported its financial results for the third quarter of 2025, showcasing a robust performance that exceeded market expectations. The latest numbers highlight stronger profitability, solid execution, and a constructive outlook for the coming quarters.

Section 1: Overview

In the third quarter of 2025, GlobalFoundries Inc. (GFS) reported impressive financial results, with a revenue of $1.688 billion and a diluted earnings per share (EPS) of $0.44. Both these figures surpassed market expectations, which were set at an EPS of $0.38 and revenue of $1.68 billion. The company’s ability to exceed these expectations highlights its strong market position and operational efficiency.

The company’s gross margin for the quarter stood at 24.8%, with a non-IFRS gross margin of 26.0%. Operating margin was recorded at 11.6%, while the non-IFRS operating margin reached 15.4%. These figures indicate a positive trend in profitability, driven by strategic initiatives and a focus on high-growth markets. The net income for the quarter was $249 million, with a non-IFRS net income of $232 million, further reflecting the company’s solid financial health.

Comparing the current quarter’s performance with the same period last year, GlobalFoundries witnessed a slight decline in revenue from $1.739 billion to $1.688 billion. However, the company managed to improve its gross profit from $414 million to $419 million, demonstrating effective cost management and operational improvements. The diluted EPS also saw a significant rise from $0.32 in Q3 2024 to $0.44 in Q3 2025, showcasing substantial growth in shareholder returns.

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Section 2: Details

Looking ahead, GlobalFoundries has provided promising guidance for the fourth quarter of 2025. The company anticipates net revenue to be approximately $1.800 billion, with a gross margin of 27.6% ± 100 basis points. This reflects an optimistic outlook and confidence in sustaining the growth trajectory observed in the previous quarters. The operating margin is projected to reach 13.3% ± 180 basis points, indicating continued focus on enhancing operational efficiencies.

The company expects its non-IFRS diluted EPS for the upcoming quarter to be around $0.47 ± $0.05, which would mark a significant increase compared to the current quarter’s performance. This forward-looking guidance suggests that GlobalFoundries is well-positioned to capitalize on market opportunities and drive further growth. The strategic initiatives, such as the expansion of production capacity in Dresden and the partnership with Silicon Labs, are expected to contribute positively to the company’s future performance.

GlobalFoundries’ strategic focus on key growth applications, including silicon photonics and FDX platforms, is likely to play a crucial role in achieving its financial targets. The company’s commitment to innovation and expansion in high-demand markets, such as automotive and communications infrastructure, positions it favorably for sustained growth. Overall, GlobalFoundries’ Q3 performance and future guidance indicate a strong foundation for continued success in the semiconductor industry.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.