GLOBALFOUNDRIES (GFS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $1.83B, with gross margin and EPS at or above the high end of guidance, driven by double-digit growth in communications, infrastructure, and data center end markets.

• Full-year 2025 revenue was $6.791B, up 1% year-over-year, with non-IFRS EPS up 10% and gross margin up nearly 400bps year-over-year.

• Achieved record 500+ design wins in 2025, 95% sole-sourced, and expanded partnerships with key industry players.

• Advanced strategic pillars through technology differentiation, major acquisitions, and expanded manufacturing investments.

• Positioned to capitalize on megatrends: AI data center scaling, proliferation of physical AI, and resilient global semiconductor supply.

Financial highlights

• Q4 2025 revenue: $1.83B, up 8% sequentially, flat year-over-year; full-year revenue: $6.791B, up 1% year-over-year.

• Q4 gross profit: $530M (29% margin, up 360bps YoY); full-year gross profit: $1.773B (26.1% margin, up 80bps YoY).

• Q4 net income: $310M; full-year net income: $965M, diluted EPS $1.72, up 10% YoY.

• Q4 operating profit: $335M (18.3% margin); full-year operating profit: $1.066B (15.7% margin, up 210bps YoY).

• Q4 cash flow from operations: $374M; full-year: $1.731B. Q4 CapEx: $110M; full-year CapEx: $574M (8% of revenue).

• Adjusted free cash flow for 2025: $1.2B (17% margin, a new record).

Outlook and guidance

• Q1 2026 revenue expected at $1.625B ± $25M; gross margin ~27% ± 100bps; operating margin ~13.2% ± 180bps.

• Q1 2026 diluted EPS expected at $0.35 ± $0.05; effective tax rate in high teens % for 2026.

• Full-year 2026 net CapEx projected at 15%-20% of revenue, driven by strong demand in silicon photonics, FDX, SiGe, and advanced packaging.

• Free cash flow margin for 2026 expected at ~10% of revenue.

• Targeting 30% gross margin by end of 2026, with long-term goal of 40%.