GlobalFoundries shares surge 7% after beating Q4 expectations

Investing.com - On Wednesday, GlobalFoundries Inc. (NASDAQ: GFS) reported fourth-quarter earnings and revenue that GlobalFoundries (NASDAQ: GFS) exceeded analyst expectations, while providing guidance that aligned with Wall Street forecasts.

The semiconductor manufacturer’s shares jumped over 7.18% in pre-market trading after the release.

The chipmaker reported adjusted earnings of $0.55 per share for the fourth quarter of 2025, comfortably beating the analyst consensus of $0.48. Revenue came in at $1.83 billion, slightly above the $1.8 billion analysts had expected, though flat compared to the same quarter last year.

GlobalFoundries’ strong performance was driven by its diversification strategy, with the company noting that its automotive and communications infrastructure segments showed particular strength. The automotive segment grew 3% YoY to $427 million, while communications infrastructure and data center revenue surged 32% YoY to $225 million.

"Our fourth quarter results were at or above the high end of our guidance ranges," said GlobalFoundries CEO in the earnings release. "We achieved our fifth consecutive quarter of double-digit percentage year-over-year revenue growth in our communications infrastructure and data center business."

The company’s adjusted gross margin improved significantly to 29%, up 360 basis points from the year-ago quarter. For the first quarter of 2026, GlobalFoundries expects revenue between $1.6 billion and $1.65 billion and adjusted earnings between $0.30 and $0.40 per share, in line with analyst expectations.

GlobalFoundries also announced that its Board of Directors approved a share repurchase authorization of up to $500 million, signaling confidence in its financial position. The company generated $264 million in adjusted free cash flow during the quarter, representing a 14% margin.

Looking ahead, GlobalFoundries highlighted its silicon photonics business, which doubled to over $200 million in 2025, with expectations to nearly double again in 2026 as the company continues to diversify beyond its traditional semiconductor manufacturing operations.

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