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 gross margin at 26.1% and non-IFRS EPS at $1.72, up 10% year-over-year.

• Achieved record design wins, expanded customer base, and executed strategic acquisitions in silicon photonics (AMF, InfiniLink), MIPS, and Synopsys Arc IP.

• Advanced strategic pillars: technology differentiation, deep customer partnerships, and diversified global footprint, including major investments in U.S. and Europe.

• Recent acquisitions and partnerships are expanding technology capabilities and market reach.

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 margin: 29% (up 360 bps YoY); full-year gross margin: 26.1% (up 80 bps 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).

• Q4 cash flow from operations: $374M; full-year: $1.731B. Full-year adjusted free cash flow: $1.2B (17% margin).

Outlook and guidance

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

• 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 demand in silicon photonics, FDX, SiGe, and advanced packaging.

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

• Share-based compensation expected to impact margins by ~100bps in Q1 2026.