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 significant gross margin expansion.

• Achieved nearly 400bps year-over-year gross margin expansion in Q4, reflecting disciplined cost management and strategic execution.

• Advanced strategic pillars through technology differentiation, deep customer partnerships, and major acquisitions, including AMF, InfiniLink, and agreement to acquire Synopsys Processor IP Solutions.

• Announced $500M share repurchase authorization, reflecting a strong balance sheet and commitment to shareholder returns.

Financial highlights

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

• Q4 gross profit: $530M (29% margin), up 300bps sequentially and 360bps year-over-year; full-year gross profit: $1.773B (26.1% margin), up 80bps year-over-year.

• Q4 net income: $200M; full-year net income: $965M, diluted EPS $1.72, up 10% year-over-year.

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

• 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% ± 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 expected at ~10% of full-year revenue for 2026.

• Communications infrastructure and data center revenue expected to grow over 30% year-over-year in 2026.