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GlobalFoundries Guides Above Street, Announces $500 Million Buyback After Q4 Beat

An above‑consensus outlook plus a $500 million buyback signals a strategy centered on data‑center infrastructure.

A screen displays the company logo for semiconductor and chipmaker GlobalFoundries Inc. during the company's IPO at the Nasdaq MarketSite in Times Square in New York City, U.S., October 28, 2021.  REUTERS/Brendan McDermid

Overview

  • GlobalFoundries forecast Q1 2026 revenue of $1.63 billion ± $25 million and adjusted EPS of $0.35 ± $0.05, both slightly above LSEG consensus.
  • The board authorized a $500 million share repurchase program, reflecting confidence in cash generation.
  • Q4 2025 revenue reached $1.83 billion with adjusted EPS of $0.55, as gross margin improved to about 29% year over year.
  • Management reported adjusted free cash flow of roughly $1.2 billion for 2025 and about $4 billion in cash, with 2026 net capex planned at 15%–20% of revenue and a target free‑cash‑flow margin near 10%.
  • The company is shifting away from smartphones toward communications and data‑center markets, with more than 60% of 2025 revenue from non‑smart mobile end markets and silicon photonics revenue doubling to over $200 million after the Advanced Micro Foundry acquisition, with further rapid growth expected this year.