GlobalFoundries Q4 Revenue Flat at $1.83B, EPS $0.55 Tops Estimates, $500M Buyback
GlobalFoundries posted flat Q4 revenue of $1.83B and EPS of $0.55, topping consensus estimates of $1.803B and $0.47, driven by 32% growth in communications/data center. Board approved a $500M buyback; CEO Tim Breen unveiled a Physical AI bet targeting a $3B onshoring opportunity.
1. Q4 Financial Results
GlobalFoundries reported Q4 revenue of $1.83 billion, flat year-over-year and above the $1.803 billion estimate, with adjusted EPS of $0.55 beating the $0.47 forecast. Smart mobile device revenue fell 11% to $657 million while communications and data center sales grew 32% to $225 million, automotive rose 3% to $427 million and non-wafer revenue jumped 42% to $218 million.
2. Margins and Cash Position
Adjusted gross margin expanded 360 basis points to 29.0% and operating margin improved 270 basis points to 18.3%, though adjusted EBITDA margin dipped 110 basis points to 35.0%. The company generated $374 million in operating cash flow and held $4 billion in cash and equivalents as of year-end.
3. Share Buyback Approval
The board authorized repurchasing up to $500 million of common stock, leveraging the strong cash balance to enhance shareholder value and signal confidence in future performance.
4. Strategic Physical AI Pivot
CEO Tim Breen outlined a shift toward “Physical AI”—embedding intelligence into autonomous vehicles and industrial robotics—supported by acquisitions of MIPS and Synopsys’ processor IP. Management is aiming to capture a $3 billion onshoring opportunity and return to a 30% gross margin in 2026 through a richer business mix.