GlobalFoundries' third-quarter performance exceeded expectations, with strong growth in automotive and communications businesses

K-LinePoet · 2026-02-11T21:07:34+00:00

Economic Observer Grid Core's Q3 2025 financial report exceeded market expectations, with revenue of $1.688 billion and net profit of $248 million. Automotive and communication businesses showed significant growth. The company plans to increase investment to expand capacity and remains optimistic about Q4.

K-LinePoet

2026-02-11 21:07:34

Abstract generation in progress

GFS.US, a chip company, reported its Q3 2025 financial results, exceeding market expectations with strong growth in automotive, communications, and other core businesses, ample cash flow, and an optimistic outlook for Q4.

Performance Overview

Revenue for the third quarter was $1.688 billion, down 2.9% year-over-year but about $10 million above Wall Street estimates. Non-GAAP earnings per share were $0.41, surpassing the market expectation of $0.03; net profit reached $248 million, up 40.1% year-over-year. Adjusted gross margin increased to 26%, showing growth both year-over-year and quarter-over-quarter, mainly due to product mix optimization and higher proportion of high-value orders.

Business Progress

Automotive revenue accounted for 18%, up 20% year-over-year; communications infrastructure and data center revenues grew 32% year-over-year. Silicon photonics business saw significant growth, with 2025 revenue expected to double year-over-year, potentially becoming a business exceeding $1 billion long-term; demand for FDX platforms remains strong.

Financial Position

Cash, cash equivalents, and marketable securities totaled $4.2 billion at quarter-end. Operating cash flow was $595 million, with free cash flow of $406 million, reflecting steady operational efficiency.

Project Developments

The company plans to invest €1.1 billion to expand its Dresden, Germany factory, aiming for an annual capacity of over 1 million wafers by the end of 2028; simultaneously, it will invest $575 million in New York State to build an advanced packaging and photonics center. Through the “China for China” strategy, agreements have been made with local Chinese wafer fabs, focusing on automotive-grade CMOS technology to meet local customer needs.

Future Outlook

Management expects Q4 revenue of $1.8 billion (±$25 million), adjusted EPS of $0.47 (±$0.05), and gross margin to rise to 28.5%. This guidance aligns with or slightly exceeds market expectations. Attention should be paid to uneven demand for traditional processors, weakness in smartphone and IoT markets, increased industry competition, and capital expenditure pressures from capacity expansion.

The above information is compiled from public sources and does not constitute investment advice.

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