GlobalFoundries' fiscal year 2025 performance remains steady, with automotive electronics and AI business becoming growth highlights

GlobalFoundries Releases Q4 and Full Year 2025 Financial Results, Demonstrating Steady Performance and Strong Growth in Automotive Electronics and AI-Related Business

Performance Overview

Revenue Surpasses Guidance: In Q4 2025, GlobalFoundries achieved $1.83 billion in revenue, an 8.4% quarter-over-quarter increase, exceeding the company’s upper guidance limit. Internal databases show that the quarterly revenue was $1.83 billion, consistent with the financial report. Gross Margin Hits New High: Non-IFRS gross margin in Q4 reached 28.7%, up 2.7 percentage points quarter-over-quarter, setting a new quarterly record. Internal database IFRS gross margin was 27.76%, indicating a significant improvement in profitability. Earnings Meet Expectations: Diluted EPS for Q4 was $0.47, at the upper end of the company’s guidance range. Internal data shows that the diluted EPS was $0.36 for the quarter. Healthy Cash Flow: Operating cash flow in Q4 was $320 million, with free cash flow of $190 million, providing strong support for capital expenditures and R&D investments. Internal data indicates operating cash flow of $374 million and free cash flow of $166 million for the quarter.

Business Progress

Automotive Electronics as Core Driver: Automotive revenue accounted for 19%, a 12% year-over-year increase, driven by strong demand for automotive-grade chips, with customers including Tesla, Volkswagen, Bosch, and others. Robust Growth in Communications and Physical AI: Significant growth in communication infrastructure and silicon photonics related to physical AI, with the long-term goal of reaching $1 billion in annual silicon photonics revenue. Narrowing Impact of Mobile Business: Mobile revenue share decreased to 38%, with a reduced negative impact on overall performance. Increased Share of High-Margin Products: Revenue from high-margin specialty processes (such as silicon photonics and automotive-grade MCUs) increased to 32%, boosting overall gross margin.

Company Project Progress

High Capacity Utilization: Global capacity utilization remains above 95%, ensuring stable order delivery. Steady Capacity Expansion: Expansion projects in New York, USA, and Dresden, Germany, are ongoing, with an additional monthly capacity of 12,000 wafers expected in 2025. Benefiting from Policy Support: The company aligns with the US CHIPS Act and the EU Chips Act, receiving government subsidies that help alleviate capital expenditure pressures and strengthen supply chain diversification strategies.

Future Outlook

The company provides an optimistic outlook for Q1 2026, expecting revenue between $1.85 billion and $1.90 billion, representing a quarter-over-quarter growth of 1.1% to 3.8%; full-year revenue is projected to grow 5% to 7% year-over-year.

The above information is compiled from publicly available sources and does not constitute investment advice.