Globalfoundries 2025 Q2 Earnings Surpasses Expectations as Net Income Jumps 47%

GlobalFoundries (GFS) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The company exceeded Non-IFRS guidance ranges for revenue and gross margin while EPS outperformed the high end of the guidance. Key drivers included strong growth in the Automotive and Communications Infrastructure and Datacenter markets.

Revenue
GlobalFoundries generated $1.69 billion in total revenue for Q2 2025, a 3.4% increase from $1.63 billion in Q2 2024. Wafer revenue accounted for the majority of the total, reaching $1.52 billion, while non-wafer revenue contributed $166 million. These figures reflect continued demand for semiconductor manufacturing services across core markets.

Earnings/Net Income
The company's net income surged by 47.1% year-over-year, reaching $228 million in Q2 2025 compared to $155 million in Q2 2024. Earnings per share (EPS) also rose significantly, climbing to $0.41 in Q2 2025, up 46.4% from $0.28 in the same period the prior year, marking a strong earnings performance.

Price Action
Following the earnings report, GFS shares experienced a decline. The stock dropped 1.50% on the latest trading day, fell 18.69% for the week, and has dropped 17.59% month-to-date. The recent performance reflects mixed investor sentiment despite the company’s strong earnings.

Post Earnings Price Action Review
Despite the revenue increase and improved earnings, the strategy of buying GFS shares on the earnings release date and holding for 30 days proved ineffective over the past three years. The approach generated a -33.22% return versus the benchmark's 47.29% gain. The CAGR was -12.77%, and the maximum drawdown was 0.00%, indicating no further downside but eroded portfolio value.

CEO Commentary
Tim Breen, CEO of GlobalFoundries, highlighted the robust Q2 performance, surpassing Non-IFRS guidance ranges for revenue, gross margin, and EPS. He emphasized continued growth in the Automotive and Communications Infrastructure and Datacenter sectors, while expressing cautious optimism about consumer markets. The company is also pursuing strategic initiatives like the MIPS acquisition and the China-for-China foundry partnership to enhance long-term customer value.

Guidance
While GlobalFoundries did not provide explicit forward-looking guidance for future quarters, the CEO noted ongoing strategic investments, including the MIPS acquisition and the China-for-China partnership, indicating a focus on market expansion and customer collaboration. The company also reiterated its Non-IFRS financial measures but did not outline specific revenue, EPS, or CAPEX targets for the next quarter.

Additional News
In recent business developments, GlobalFoundries was named the exclusive manufacturing partner for Continental’s newly established Advanced Electronics & Semiconductor Solutions (AESS) organization in June. This partnership aims to meet the growing demand for safe, connected autonomous vehicles, leveraging GF’s global manufacturing footprint and automotive-qualified process technologies.

In July, the company announced a definitive agreement to acquire MIPS, a leader in AI and processor IP. The acquisition will expand GF’s portfolio with advanced RISC-V processor IP and software tools tailored for real-time computing in automotive, industrial, and data center applications. This strategic move is expected to enhance collaboration and customization opportunities for GF’s customers.

Additionally, GF advanced its China-for-China strategy by entering into a definitive agreement with a local Chinese foundry to support customers with reliable supply in mainland China. This partnership allows customers to benefit from GF’s automotive-grade process technologies and manufacturing capabilities to meet domestic Chinese demand.