GlobalFoundries stock falls over 5% on weak guidance despite Q4 earnings beat

Published 11/02/2025, 13:22
GlobalFoundries stock falls over 5% on weak guidance despite Q4 earnings beat

MALTA, N.Y. - On Tuesday, GlobalFoundries Inc. (NASDAQ:GFS) reported fourth-quarter earnings that beat analyst estimates, but its stock tumbled -5.14% in after-hours trading due to weaker-than-expected guidance for the first quarter of 2025.

The semiconductor manufacturer posted adjusted earnings per share of $0.46 for Q4 2024, slightly above the analyst consensus of $0.45. Revenue came in at $1.83 billion, in line with expectations.

However, GlobalFoundries’ outlook for Q1 2025 fell short of Wall Street projections. The company forecast revenue between $1.55 billion and $1.6 billion, below the $1.66 billion analysts were expecting. Adjusted EPS guidance of $0.24 to $0.34 also missed the $0.33 consensus estimate.

"In the fourth quarter, the GF team delivered solid financial results that exceeded the Non-IFRS midpoint of the guidance ranges we provided in our November earnings release," said CEO Thomas Caulfield.

For the full year 2024, GlobalFoundries reported revenue of $6.75 billion, down 9% YoY. Adjusted net income fell 30% to $870 million.

The company noted it generated over $1 billion in adjusted free cash flow in 2024 despite industry challenges. Looking ahead, Caulfield said GlobalFoundries is "encouraged by our strong design win momentum across our end markets and product portfolio as we position GF for a growth year" in 2025.

GlobalFoundries also recorded a $935 million impairment charge in Q4 related to legacy production capacity at its Malta, New York facility as it diversifies its manufacturing technology roadmap.

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