GlobalFoundries ( GFS ) stock gained after it reported fiscal third-quarter 2025 results on Wednesday.

The company’s quarterly revenue declined 3% year-on-year (Y/Y) to $1.688 billion, topping the analyst consensus estimate of $1.676 billion.

The contract chipmaker’s adjusted EPS of 41 cents beat the analyst consensus estimate of 37 cents. 

Also Read: GlobalFoundries Secures Next-Gen Chip Tech From Taiwan Semiconductor

Segment Highlights

Smart mobile device revenue declined 13% from a year ago to $752 million.

Communications infrastructure & data center revenue grew 32% Y/Y to $175 million.

Home and industrial IOT revenue decreased 16% Y/Y to $258 million.

Automotive revenue rose 20% Y/Y to $306 million. Non-wafer revenue grew 13% Y/Y to $197 million.

Margin and Cash Flow Metrics

The adjusted gross margin rose 130 bps Y/Y to 26.0%. The adjusted operating margin increased by 180 bps to 15.4%. The adjusted EBITDA margin declined by 220 bps Y/Y to 33.9%. 

As of September 30, 2025, GlobalFoundries ( GFS ) generated $595 million in operating cash flow and held $4.2 billion in cash and equivalents.

CEO Commentary

GlobalFoundries ( GFS ) recorded its fourth consecutive quarter of year-over-year revenue growth in both Automotive and Communications Infrastructure and Data Center markets, CEO Tim Breen noted.

Gross margin expanded both sequentially and annually as GF continued to optimize its product mix and profitability, he said.

The company also saw growing customer momentum across key growth areas, including its silicon photonics and FDX platforms, Breen added.

Outlook

GlobalFoundries ( GFS ) expects fourth-quarter revenue of $1.775 billion-$1.825 billion versus the $1.794 billion analyst consensus estimate. The company expects adjusted EPS of 42 cents to 52 cents versus the 46 cents analyst consensus estimate.

Price Action: GFS stock was trading higher by 7.07% to $37.27 premarket at last check Wednesday.

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