GlobalFoundries Inc. (NASDAQ:GFS) shares climbed more than 7.18% in pre-market trading Wednesday after the chipmaker posted fourth-quarter results that topped expectations and issued guidance broadly in line with Wall Street forecasts.
For the fourth quarter of 2025, the semiconductor manufacturer reported adjusted earnings of $0.55 per share, ahead of the $0.48 consensus estimate. Revenue totaled $1.83 billion, slightly above analyst expectations of $1.8 billion and flat year over year.
The company attributed its solid performance to continued diversification across end markets, with particular momentum in automotive and communications infrastructure. Automotive revenue rose 3% from a year earlier to $427 million, while communications infrastructure and data center sales jumped 32% year over year to $225 million.
“Our fourth quarter results were at or above the high end of our guidance ranges,” said GlobalFoundries CEO in the earnings release. “We achieved our fifth consecutive quarter of double-digit percentage year-over-year revenue growth in our communications infrastructure and data center business.”
Adjusted gross margin expanded to 29%, an improvement of 360 basis points compared to the same period last year.
For the first quarter of 2026, GlobalFoundries expects revenue between $1.6 billion and $1.65 billion and adjusted earnings per share of $0.30 to $0.40, broadly matching analyst projections.
The company also revealed a new share repurchase authorization of up to $500 million, reflecting confidence in its balance sheet and cash generation. During the quarter, GlobalFoundries produced $264 million in adjusted free cash flow, equal to a 14% margin.
Looking forward, management pointed to rapid growth in its silicon photonics business, which surpassed $200 million in revenue in 2025 and is projected to nearly double again in 2026, underscoring efforts to broaden its footprint beyond traditional semiconductor manufacturing.