Revenue growth remains stagnant with quarterly fluctuations between a 15.9% decline and a 3.1% increase, while gross margins remain constrained within a 22.4% to 28.9% range.
| Sales/Revenue | 6.84B | 6.79B | 6.75B | 7.39B | 8.11B | 6.58B | 4.85B | 5.81B |
| Revenue Growth % | 0.8% | 0.61% | -8.69% | -8.83% | 23.13% | 35.75% | -16.55% | - |
| Cost of Goods Sold | 5.03B | 5.08B | 5.1B | 5.29B | 5.87B | 5.57B | 5.56B | 6.35B |
| COGS % of Revenue | - | 74.82% | 75.54% | 71.58% | 72.39% | 84.62% | 114.68% | 109.16% |
| Gross Profit | 1.81B | 1.71B | 1.65B | 2.1B | 2.24B | 1.01B | -712M | -532.24M |
| Gross Margin % | 26.4% | 25.18% | 24.46% | 28.42% | 27.61% | 15.38% | -14.68% | -9.16% |
| Gross Profit Growth % | - | 3.57% | -21.42% | -6.16% | 121.03% | 242.28% | -33.77% | - |
| Operating Expenses | 980M | 913M | 1.86B | 972M | 1.07B | 1.07B | 944M | 1.09B |
| OpEx % of Revenue | - | 13.44% | 27.63% | 13.15% | 13.22% | 16.29% | 19.46% | 18.8% |
| Selling, General & Admin | 346M | 362M | 401M | 448M | 451M | 546M | 330M | 358.94M |
| SG&A % of Revenue | - | 5.33% | 5.94% | 6.06% | 5.56% | 8.29% | 6.8% | 6.17% |
| Research & Development | 523M | 518M | 496M | 428M | 482M | 478M | 476M | 582.97M |
| R&D % of Revenue | - | 7.63% | 7.35% | 5.79% | 5.94% | 7.26% | 9.81% | 10.03% |
| Other Operating Expenses | 2M | 33M | 968M | 96M | 139M | 49M | 138M | 150.64M |
| Operating Income | 826M | 797M | -214M | 1.13B | 1.17B | -60M | -1.66B | -1.62B |
| Operating Margin % | 12.08% | 11.74% | -3.17% | 15.27% | 14.39% | -0.91% | -34.14% | -27.95% |
| Operating Income Growth % | - | 472.43% | -118.95% | -3.26% | 2045% | 96.38% | -1.92% | - |
| EBITDA | 2.11B | 2.11B | 1.35B | 2.58B | 2.79B | 1.56B | 866M | 1.05B |
| EBITDA Margin % | 30.88% | 31.09% | 20.06% | 34.9% | 34.41% | 23.66% | 17.85% | 18.12% |
| EBITDA Growth % | 69.64% | 55.91% | -47.52% | -7.53% | 79.08% | 79.91% | -17.79% | - |
| D&A (Non-Cash Add-back) | 1.29B | 1.31B | 1.57B | 1.45B | 1.62B | 1.62B | 2.52B | 2.68B |
| EBIT | 901M | 911M | -64M | 1.19B | 1.62B | -77M | -1.23B | -944.35M |
| Net Interest Income | 67M | 66M | 56M | 12M | -66M | -108M | -151.29M | -218.8M |
| Interest Income | 67M | 66M | 201M | 149M | 51M | 5.7M | 3.1M | 11.38M |
| Interest Expense | 0 | 0 | 145M | 137M | 117M | 113.7M | 154.39M | 230.18M |
| Other Income/Expense | 75M | 114M | 44M | -45M | 365M | -116M | 291M | 477.67M |
| Pretax Income | 901M | 911M | -170M | 1.08B | 1.53B | -176M | -1.36B | -1.15B |
| Pretax Margin % | 13.17% | 13.41% | -2.52% | 14.66% | 18.89% | -2.67% | -28.14% | -19.73% |
| Income Tax | 120M | 23M | 92M | 66M | 86M | 78M | -12M | 224.06M |
| Effective Tax Rate % | 13.32% | 2.52% | -54.12% | 6.09% | 5.61% | -44.32% | 0.88% | -19.53% |
| Net Income | 778M | 885M | -265M | 1.02B | 1.45B | -250M | -1.35B | -1.37B |
| Net Margin % | 11.37% | 13.03% | -3.93% | 13.8% | 17.86% | -3.8% | -27.83% | -23.59% |
| Net Income Growth % | 513.83% | 433.96% | -125.98% | -29.56% | 679.2% | 81.48% | 1.55% | - |
| Net Income (Continuing) | 781M | 888M | -262M | 1.02B | 1.45B | -254M | -1.35B | -1.37B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 55M | 55M | 48M | 47M | 47M | 58M | 65.13M | 0 |
| EPS (Diluted) | 1.39 | 1.59 | -0.48 | 1.83 | 2.62 | -0.49 | -2.54 | -2.66 |
| EPS Growth % | 508.82% | 431.25% | -126.23% | -30.15% | 634.69% | 80.71% | 4.51% | - |
| EPS (Basic) | - | 1.59 | -0.48 | 1.85 | 2.69 | -0.49 | -2.54 | -2.66 |
| Diluted Shares Outstanding | 561M | 558M | 553M | 556M | 552M | 505.76M | 531.85M | 515.92M |
| Basic Shares Outstanding | 555M | 556.6M | 553M | 552M | 539M | 505.76M | 531.85M | 515.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High fixed cost sensitivity
According to recent quarterly filings, GFS revenue growth has fluctuated between a 15.9% decline and a 3.1% increase, suggesting that the company is struggling to find a consistent growth trajectory amidst ongoing inventory corrections and a challenging demand environment for its core semiconductor foundry services.
The lack of sustained top-line momentum appears to reflect the cyclical nature of the mature node market, where demand is heavily tethered to consumer electronics replacement cycles. Investors should monitor whether the recent shift toward automotive and industrial applications can eventually decouple the company from these volatile mobile-centric trends.
As reported in financial statements, GFS gross margins have hovered between 22.4% and 28.9% over the last ten quarters, indicating that the company's profitability remains highly sensitive to factory utilization rates and the inherent pricing limitations of its specialized, non-leading-edge semiconductor manufacturing process nodes.
The inability to consistently maintain gross margins above the 28% level suggests that GFS lacks the pricing power of leading-edge foundries. This margin profile warrants further investigation into whether the company's specialty nodes can command higher premiums as automotive and industrial design wins mature over the coming years.
Based on the provided income statement data, operating margins have experienced significant swings, including a sharp contraction to -38.3% in 2024Q4, which highlights the extreme vulnerability of the company's high fixed-cost structure to even minor fluctuations in quarterly wafer throughput and overall factory utilization levels.
The erratic nature of operating income suggests that GFS struggles to achieve meaningful operating leverage during periods of soft demand. Management's ability to control SG&A and R&D expenses appears insufficient to offset the impact of depreciation and overhead when utilization rates fall below critical thresholds.
Analysis of the reported figures reveals that net income has been subject to extreme variance, including a massive loss in 2024Q4, while stock-based compensation remains a persistent expense, consistently ranging between $30 million and $60 million per quarter throughout the observed ten-quarter period.
The significant discrepancy between operating income and net income in certain periods suggests that non-operating items or tax anomalies may be distorting the underlying earnings quality. Investors should be cautious of relying on EPS as a stable metric given the company's susceptibility to one-time charges and cyclical swings.
While management emphasizes the strategic value of domestic expansion, the income statement data suggests that aggressive capital allocation may lead to stranded assets if the expected demand for U.S.-manufactured specialty chips fails to materialize at the price points necessary to justify the high depreciation burden.
Short-sellers may focus on the potential for margin compression if the company continues to expand capacity in a high-cost environment without a corresponding increase in utilization. The reliance on government subsidies to offset these costs may mask the true economic viability of the company's long-term manufacturing strategy.
Quick answers to the most common questions about buying GFS stock.
For fiscal year 2025, GLOBALFOUNDRIES Inc. (GFS) reported total revenue of $6.79B. This represents a 16.8% increase compared to $5.81B in 2019.
GLOBALFOUNDRIES Inc. (GFS) is profitable, generating $885.0M in net income for the fiscal year ending 2025 with a net profit margin of 13.0%.
GLOBALFOUNDRIES Inc. (GFS) reported an operating income of $797.0M, resulting in an operating profit margin of 11.7%. This margin reflects the operational efficiency of the business before interest and taxes.
GLOBALFOUNDRIES Inc. (GFS) generated $1.71B in gross profit for the year, representing a gross profit margin of 25.2%. This demonstrates the company's core pricing power and production efficiency.