GlobalFoundries (NASDAQ:GFS) delivered pedestrian Q1 FY25 results, beating on both revenue and earnings, with Q2 guidance broadly in line with expectations. However, the results highlighted ongoing challenges—revenue and margins showed little to no sequential growth, and the company leaned on favorable year-over-year comparisons rather than addressing the quarterly deceleration. The cited 90% sole-sourced metric rings hollow given the flat topline, raising questions about the strength of demand.
The one area of continued strength was in Communication Infrastructure and Datacenter, which provided some support. Management stated there has been no material impact from tariffs and affirmed they are positioned to absorb potential shifts in customer sourcing preferences toward U.S. operations. Full-year guidance remained unchanged, pointing to modest growth with limited margin expansion—unlikely to spark investor enthusiasm. Notably, management sidestepped a discussion on Average Selling Price (ASP), instead deflecting to cost controls and product mix as levers for maintaining profitability.
For more details, key highlights, and commentary, check out the high-level earnings summary.
