GlobalFoundries Inc. (NASDAQ:GFS) shares climbed 3.6% in premarket trading after the semiconductor manufacturer delivered third-quarter results that surpassed analyst forecasts, driven by robust growth in its automotive and communications infrastructure businesses.
The New York–based chipmaker reported adjusted earnings per share of $0.41, topping the analyst consensus of $0.38. Revenue reached $1.69 billion, slightly above expectations of $1.68 billion, though it represented a 3% decline year-over-year compared to $1.74 billion in the same quarter of 2024.
Following the announcement, GlobalFoundries’ stock rose as investors reacted positively to the company’s earnings beat and upbeat fourth-quarter outlook.
“GF delivered a strong third quarter, with revenue, gross margin, operating margin, and earnings per share at the high end of the guidance ranges,” said Tim Breen, CEO of GlobalFoundries. “For the fourth consecutive quarter, we saw strong year-over-year revenue growth in both our Automotive and Communications Infrastructure and Data Center end markets.”
The company reported a non-IFRS gross margin of 26.0%, improving by 130 basis points year-over-year and 80 basis points sequentially. Wafer shipments also rose 10% year-over-year to 602,000 units (300mm equivalent).
Looking ahead, GlobalFoundries expects fourth-quarter revenue between $1.775 billion and $1.825 billion, consistent with the market consensus of $1.79 billion. The company forecasts adjusted earnings per share of $0.42 to $0.52, compared to analyst projections of $0.47.