What does Globalfoundries do and what are its main business segments?

What is Globalfoundries's latest dividend and current dividend yield?

What is the market's earnings forecast for Globalfoundries next quarter?

What were the key takeaways from Globalfoundries's earnings call?

What were the key takeaways from Globalfoundries’s earnings call?

Did Globalfoundries beat or miss consensus estimates last quarter?

What factors drove the changes in Globalfoundries's revenue and profit?

What is the revenue and EPS growth rate for Globalfoundries year over year?

- **Revenue Resilience**: $1.688B Q3 revenue flat Q/Q, -3% Y/Y, with automotive (+20% Y/Y) and comms infrastructure (+32% Y/Y) driving growth.
- **Margin Expansion**: Gross margin 26% (up 80bps Q/Q), operating margin 15.4% (up 180bps Y/Y), targeting 26.8% gross margin in Q4.
- **Optical Networking Growth**: $200M 2025 revenue (doubling Y/Y), targeting $1B+ run rate by end of decade with 3 new design wins ($150M lifetime value).
- **Physical AI Expansion**: $18B SAM by 2030, with wins in AI-enabled glasses, hearables, and vehicles.
- **CapEx Focus**: $16B U.S. investment for advanced packaging, $1.1B Dresden expansion for 1M+ wafer/year capacity.
- **Free Cash Flow Strength**: $451M Q3 adjusted free cash flow (27% margin), $4.2B cash, $1.2B debt.
- **2025 Guidance**: Automotive revenue to reach $1.5B, comms infrastructure up low-20s% Y/Y.


**CEO Summary Section**
- Q3 2025 revenue of $1.688B, flat Q/Q, -3% Y/Y, with automotive and communications infrastructure driving growth.
- Gross margin expanded to 26% (up 80bps Q/Q, 130bps Y/Y), driven by product mix and cost control.
- Optical networking revenue on track for $200M in 2025, targeting $1B+ run rate by end of decade.
- Physical AI SAM of $18B by 2030, with wins in AI-enabled glasses, hearables, and vehicles.
- $16B U.S. investment for advanced packaging, including $1.1B expansion in Dresden for 1M+ wafer/year capacity.

**CFO Financial Commentary**
- Q3 gross profit $439M (26% margin), operating profit $260M (15.4% margin), net income $232M ($0.41 EPS).
- Q4 guidance: $1.8B ±$25M revenue, 26.8% ±100bps gross margin, $0.47 ±$0.05 EPS.
- 2025 automotive revenue to reach $1.5B, comms infrastructure up low-20s% Y/Y.
- Adjusted free cash flow $451M (27% margin), $4.2B cash, $1.2B debt.

**Q&A Highlights**
- **Silicon Photonics**: GF's 10+ year lead in device performance, packaging innovation, and ecosystem partnerships (e.g., Corning). 2025 revenue to double Y/Y, targeting $1B+ by end of decade.
- **GaN Strategy**: $40M+ annualized revenue from 200mm fabs in Vermont, licensed TSMC 650V/80V tech for 2026 production. Focus on U.S. manufacturing for automotive, data center.
- **Onshoring**: 8 customer announcements for U.S. manufacturing, $15B-$20B addressable spend. Dresden expansion for Europe, Singapore for China diversification.
- **Mobile Growth**: 10% Q/Q increase in smart mobile devices, long-term focus on audio, haptics, advanced imaging. MIPS acquisition to boost IP licensing.
- **Utilization**: Mid-80s% Q3, modest improvement expected in Q4. Non-wafer revenue (13% of Q3) to grow 20%+ in 2025 from design wins, reticles, NRE.


GlobalFoundries Inc. (GFS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GFS

GFS fundamentals

You can ask Aime