GlobalFoundries Navigates Weak Outlook As Mobile Device Revenue Declines
The company's quarterly revenue growth of 3% year-on-year (Y/Y) to $1.69 billion, topping the analyst consensus estimate of $1.68 billion.
The contract chipmaker's adjusted EPS of 42 cents beat the analyst consensus estimate of 35 cents.Smart mobile device revenue declined 10% from a year ago to $683 million.
Communications infrastructure & data center revenue grew 11% Y/Y to $171 million.
Home and industrial IOT revenue increased 2% Y/Y to $300 million.
View more earnings on GFS
Automotive revenue rose 36% Y/Y to $368 million. Non-wafer revenue grew 10% Y/Y to $166 million.
The adjusted gross margin remained flat Y/Y at 25.2%. The adjusted operating margin increased by 130 bps to 13.4%. The adjusted EBITDA margin rose by 230 bps Y/Y to 15.3%.
As of June 30, 2025, GlobalFoundries generated $431 million in operating cash flow and held $3.9 billion in cash and equivalents.
CEO Tim Breen noted that continued momentum in the Automotive and Communications Infrastructure and Datacenter segments drove double-digit year-over-year revenue growth for both businesses. While GF awaits a recovery in consumer-driven markets, Breen emphasized the company's progress in strengthening its long-term customer value through the planned acquisition of MIPS and the establishment of a China-for-China foundry partnership.
Outlook
GlobalFoundries expects third-quarter revenue of $1.650 billion-$1.700 billion (prior $1.425 billion-$1.925 billion) versus the $1.774 billion analyst consensus estimate. The company expects adjusted EPS of $0.33-$0.43 (prior $0.31-$0.41) versus the $0.41 analyst consensus estimate.
GlobalFoundries stock dropped 16% year-to-date due to the broader market downturn and a lack of significant exposure to the booming AI sector.
Price Action: GFS stock is trading lower by 7.21% to $33.57 premarket at last check Tuesday.
Photo by JHVEPhoto via Shutterstock
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article GlobalFoundries Navigates Weak Outlook As Mobile Device Revenue Declines originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a minute ago
- Yahoo
Palantir CEO says he'll 10X revenue in 'crazy efficient revolution' — what investors need know as Wall Street buys in
Palantir's enigmatic CEO Alex Karp just made a claim that would sound delusional coming from almost any other tech executive: He plans to grow revenue tenfold while shrinking his workforce by over 10%. "We're planning to grow our revenue … while decreasing our number of people," Karp told CNBC's Morgan Brennan on Aug. 5. after the data analytics giant crushed Wall Street expectations with its second-quarter earnings. "This is a crazy, efficient revolution. The goal is to get 10x revenue and have 3,600 people. We have now 4,100." The assertion came as Palantir's stock soared to all-time highs above $179. With the stock already up 139% this year, even seasoned investors are starting to take Karp's vision seriously.' Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now The numbers that made Wall Street believers Palantir's second-quarter results weren't just good — they were the kind of numbers that make skeptics eat their words. The company posted revenue of $1.004 billion, marking its first-ever billion-dollar quarter and growing 48% year over year. That crushed analyst expectations of $939 million. But the real story was hiding in the details. U.S. commercial revenue nearly doubled with 93% growth to $306 million, while the company's "Rule of 40" score — a key metric combining growth rate and profit margin — hit an astronomical 94%. To put that in perspective, most successful software companies are thrilled to hit 40%. "The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission," Karp wrote in a characteristically fiery letter to shareholders. The company also generated adjusted free cash flow of $569 million with a 57% margin — the kind of cash generation that makes Karp's efficiency claims seem less like Silicon Valley hype and more like mathematical reality. Real customers, real results — measured in minutes, not months While Karp's rhetoric can sound overblown, Palantir's customers are backing up his efficiency revolution with hard numbers that would make any CFO salivate. Fannie Mae, the mortgage giant, is now using Palantir's AI platform to detect fraud in seconds — a process that previously took months. "This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers," said Priscilla Almodovar, Fannie Mae's president and CEO. At Land O'Frost, a major food manufacturer, production schedules that once took 40 hours to create now take 30 minutes. "This can now be done in 30 minutes," confirmed Kelli Howard, the company's vice president of supply chain, referring to a process that represents an 80-fold improvement in efficiency. Even the State Department has gotten in on the action, reducing the time to clear foreign service candidates from 60 days to just 12. "We put the first application into production in 3 months," said Alan Lewis, IT director at the Bureau of Medical Services. Perhaps most tellingly, one healthcare executive has coined a new unit of measurement. "We've been using the term 'a Palantir unit of time' — and that represents when we're driving value in less than an hour," said Dr. Michael Ash, president and COO of Nebraska Medicine. Wall Street takes notice as commercial momentum explodes The numbers coming out of Palantir's commercial business are the kind that make Wall Street analysts recalibrate their models. U.S. commercial contract value climbed 222% year over year to $843 million — a figure that suggests Palantir's push beyond government contracts is just getting started. The remaining deal value for U.S. commercial customers grew 145% year over year and 20% quarter over quarter to $2.8 billion, indicating a robust pipeline of future revenue. These aren't just one-off wins; the company's U.S. commercial customer count jumped 64% year over year to 485 customers. But perhaps the most eye-popping development is Palantir's recent 10-year contract with the U.S. Army worth up to $10 billion. That's more than three times Palantir's entire 2024 revenue of $2.87 billion, making it one of the company's biggest deals ever. The combination of exploding commercial growth and massive government contracts has analysts scrambling to update their models. With the company raising full-year guidance to between $4.142 billion and $4.150 billion — up from the previous $3.89 billion to $3.90 billion — Wall Street is beginning to realize that Palantir's transformation from a government contractor to a dual-threat AI powerhouse might be further along than anyone expected. Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. The CEO who thinks Harvard is overrated In typical Karp fashion, the CEO used the earnings call to take shots at traditional institutions while touting Palantir's unconventional approach to business. "If you did not go to school, or you went to a school that's not that great, or you went to Harvard or Princeton or Yale, once you come to Palantir, you're a Palantirian — no one cares about the other stuff," Karp said during Monday's earnings call. "This is by far the best credential in tech. If you come to Palantir, your career is set." It's not just talk. Palantir has achieved its explosive growth without a traditional enterprise sales force — a decision that conventional wisdom said would doom the company. Instead, they've focused on building products so compelling that customers essentially sell themselves. The approach seems to be working. During the second quarter, Palantir closed 157 deals worth at least $1 million, including 66 deals of at least $5 million and 42 deals of at least $10 million. What investors need to know Palantir just dramatically raised its financial targets for 2025, and the numbers are staggering. The company now expects to bring in between $4.142 billion and $4.150 billion in revenue this year — that's up from their previous forecast of $3.89 billion to $3.90 billion. To put that in perspective, they just increased their revenue outlook by about $250 million in a single quarter. The U.S. commercial business is the real rocket ship here. Palantir expects this segment alone to generate more than $1.302 billion in 2025, growing at least 85% year over year. That's the kind of growth rate you typically see from small startups, not companies already doing billions in revenue. The company expects to generate between $1.8 billion and $2 billion in adjusted free cash flow this year. In plain English, that means the company is throwing off massive amounts of cash — nearly 50 cents for every dollar of revenue. Most software companies would kill for those kinds of margins. But here's where it gets tricky for investors: Despite the impressive results, Palantir's stock currently trades at 277 times forward earnings. That's a valuation that would make even the frothiest dot-com era stocks blush. Chief Revenue Officer Ryan Taylor provided some context for why customers are willing to pay premium prices: "LLMs simply don't work in the real world without Palantir. This is the reality fueling our growth." In other words, while everyone's talking about ChatGPT and other AI tools, Palantir claims to be the crucial bridge that makes these technologies actually useful for businesses — and companies are willing to pay up for that capability. The bottom line Is Karp's vision of 10x revenue growth with fewer employees realistic, or is it the kind of hubris that precedes a spectacular fall? The numbers suggest it might actually be achievable. With 57% cash flow margins, exploding commercial adoption, and massive government contracts in hand, Palantir is generating the kind of efficiency gains that make the impossible look inevitable. As Karp himself put it, "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades." For investors, the question isn't whether Palantir can deliver on its promises — the company is already doing that. The question is whether even these spectacular results can justify a valuation that assumes perfection for years to come. With analysts suggesting investors buy on pullbacks rather than chase the stock at all-time highs, patience might be the best strategy for those looking to join Karp's "crazy efficient revolution." What to read next Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
a minute ago
- Yahoo
Palantir CEO says he'll 10X revenue in 'crazy efficient revolution' — what investors need to know as Wall Street buys in
Palantir's enigmatic CEO Alex Karp just made a claim that would sound delusional coming from almost any other tech executive: He plans to grow revenue tenfold while shrinking his workforce by 10%. "We're planning to grow our revenue … while decreasing our number of people," Karp told CNBC's Morgan Brennan on Aug. 5. after the data analytics giant crushed Wall Street expectations with its second-quarter earnings. "This is a crazy, efficient revolution. The goal is to get 10x revenue and have 3,600 people. We have now 4,100." The assertion came as Palantir's stock soared to all-time highs above $179. With the stock already up 139% this year, even seasoned investors are starting to take Karp's vision seriously. The numbers that made Wall Street believers Palantir's second-quarter results weren't just good — they were the kind of numbers that make skeptics eat their words. The company posted revenue of $1.004 billion, marking its first-ever billion-dollar quarter and growing 48% year over year. That crushed analyst expectations of $939 million. But the real story was hiding in the details. U.S. commercial revenue nearly doubled with 93% growth to $306 million, while the company's "Rule of 40" score — a key metric combining growth rate and profit margin — hit an astronomical 94%. To put that in perspective, most successful software companies are thrilled to hit 40%. "The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission," Karp wrote in a characteristically fiery letter to shareholders. The company also generated adjusted free cash flow of $569 million with a 57% margin — the kind of cash generation that makes Karp's efficiency claims seem less like Silicon Valley hype and more like mathematical reality. Real customers, real results — measured in minutes, not months While Karp's rhetoric can sound overblown, Palantir's customers are backing up his efficiency revolution with hard numbers that would make any CFO salivate. Fannie Mae, the mortgage giant, is now using Palantir's AI platform to detect fraud in seconds — a process that previously took months. "This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers," said Priscilla Almodovar, Fannie Mae's president and CEO. At Land O'Frost, a major food manufacturer, production schedules that once took 40 hours to create now take 30 minutes. "This can now be done in 30 minutes," confirmed Kelli Howard, the company's vice president of supply chain, referring to a process that represents an 80-fold improvement in efficiency. Even the State Department has gotten in on the action, reducing the time to clear foreign service candidates from 60 days to just 12. "We put the first application into production in 3 months," said Alan Lewis, IT director at the Bureau of Medical Services. Perhaps most tellingly, one healthcare executive has coined a new unit of measurement. "We've been using the term 'a Palantir unit of time' — and that represents when we're driving value in less than an hour," said Dr. Michael Ash, president and COO of Nebraska Medicine. Wall Street takes notice as commercial momentum explodes The numbers coming out of Palantir's commercial business are the kind that make Wall Street analysts recalibrate their models. U.S. commercial contract value climbed 222% year over year to $843 million — a figure that suggests Palantir's push beyond government contracts is just getting started. The remaining deal value for U.S. commercial customers grew 145% year over year and 20% quarter over quarter to $2.8 billion, indicating a robust pipeline of future revenue. These aren't just one-off wins; the company's U.S. commercial customer count jumped 64% year over year to 485 customers. But perhaps the most eye-popping development is Palantir's recent 10-year contract with the U.S. Army worth up to $10 billion. That's more than three times Palantir's entire 2024 revenue of $2.87 billion, making it one of the company's biggest deals ever. The combination of exploding commercial growth and massive government contracts has analysts scrambling to update their models. With the company raising full-year guidance to between $4.142 billion and $4.150 billion — up from the previous $3.89 billion to $3.90 billion — Wall Street is beginning to realize that Palantir's transformation from a government contractor to a dual-threat AI powerhouse might be further along than anyone expected. The CEO who thinks Harvard is overrated In typical Karp fashion, the CEO used the earnings call to take shots at traditional institutions while touting Palantir's unconventional approach to business. "If you did not go to school, or you went to a school that's not that great, or you went to Harvard or Princeton or Yale, once you come to Palantir, you're a Palantirian — no one cares about the other stuff," Karp said during Monday's earnings call. "This is by far the best credential in tech. If you come to Palantir, your career is set." It's not just talk. Palantir has achieved its explosive growth without a traditional enterprise sales force — a decision that conventional wisdom said would doom the company. Instead, they've focused on building products so compelling that customers essentially sell themselves. The approach seems to be working. During the second quarter, Palantir closed 157 deals worth at least $1 million, including 66 deals of at least $5 million and 42 deals of at least $10 million. What investors need to know Palantir just dramatically raised its financial targets for 2025, and the numbers are staggering. The company now expects to bring in between $4.142 billion and $4.150 billion in revenue this year — that's up from their previous forecast of $3.89 billion to $3.90 billion. To put that in perspective, they just increased their revenue outlook by about $250 million in a single quarter. The U.S. commercial business is the real rocket ship here. Palantir expects this segment alone to generate more than $1.302 billion in 2025, growing at least 85% year over year. That's the kind of growth rate you typically see from small startups, not companies already doing billions in revenue. The company expects to generate between $1.8 billion and $2 billion in adjusted free cash flow this year. In plain English, that means the company is throwing off massive amounts of cash — nearly 50 cents for every dollar of revenue. Most software companies would kill for those kinds of margins. But here's where it gets tricky for investors: Despite the impressive results, Palantir's stock currently trades at 277 times forward earnings. That's a valuation that would make even the frothiest dot-com era stocks blush. Chief Revenue Officer Ryan Taylor provided some context for why customers are willing to pay premium prices: "LLMs simply don't work in the real world without Palantir. This is the reality fueling our growth." In other words, while everyone's talking about ChatGPT and other AI tools, Palantir claims to be the crucial bridge that makes these technologies actually useful for businesses — and companies are willing to pay up for that capability. The bottom line Is Karp's vision of 10x revenue growth with fewer employees realistic, or is it the kind of hubris that precedes a spectacular fall? The numbers suggest it might actually be achievable. With 57% cash flow margins, exploding commercial adoption, and massive government contracts in hand, Palantir is generating the kind of efficiency gains that make the impossible look inevitable. As Karp himself put it, "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades." For investors, the question isn't whether Palantir can deliver on its promises — the company is already doing that. The question is whether even these spectacular results can justify a valuation that assumes perfection for years to come. With analysts suggesting investors buy on pullbacks rather than chase the stock at all-time highs, patience might be the best strategy for those looking to join Karp's "crazy efficient revolution." This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a minute ago
- Yahoo
2 investment trusts I'd consider for long-term passive income
For my money, the best way to source a long-term second income is to invest in dividend-paying assets. I own a variety of stocks, investment trusts and exchange-traded funds (ETFs) that have a history of paying a large and growing income over time. Here are two that have caught my attention this month. I'll consider adding them to my Stocks and Shares ISA when I next have spare cash to invest. Growth and income potential At 11%, Henderson Far East Income (LSE:HFEL) has one of the highest forward dividend yields on the London stock market. This reflects in large part significant share price weakness in recent years that's inflated the yield. As its name implies, it provides significant exposure to China and the surrounding regions. Around 27% of its capital is tied up in Chinese equities alone. So amid signs of severe economic cooling there, it's no shock to see it fall in value. The trust's regained much ground in 2025, thanks to signs of improvement in China's economy. Yet with trade tensions simmering, it's possible the share price could turn lower again. However, I still think Henderson Far East Income is an attractive trust to consider. Its investment across a spectrum of Asian powerhouse economies (including Hong Kong, India and South Korea) provides abundant opportunities for shareholders to tap into. With continental wealth levels and population sizes booming, I think it provides excellent growth and income potential. The make-up of its portfolio also allows it to weather individual dividend shocks and pay a large and growing dividend. As well as providing excellent geographical diversification, the 70-plus companies it holds are spread across multiple sectors including financial services, consumer goods, real estate and technology. As you can see, annual dividends have kept steadily rising, even in spite of troubles in the key Chinese market. In fact, they've grown for 17 years on the bounce. Another top trust TR Property Investment Trust (LSE:TRY) doesn't have such a knockout near-term dividend yield. For 2025, it sits at a still-market-beating (but not double-digit) figure of 5%. What it does have however, is a similarly excellent record of unbroken dividend growth. Shareholder rewards have risen almost each year for around 20 years. TR invests in real estate investment trusts (REITs) across Europe, including the UK. This makes it a reliable source of income as, under sector rules, these trusts must pay at least 90% of annual rental earnings out in dividends. That's in exchange for the tax breaks they receive. Many of these trusts focus on cyclical sectors like retail, leisure and industrials. And so rental collection and building occupancy are highly sensitive to economic conditions. But strong diversification across sectors helps limit such damage on overall returns. Healthcare, residential and food retail are also among the industries it has exposure to through the 48 REITs it holds. Today, the trust trades an a near-8% discount to its net asset value (NAV) per share of 352p. Combined with that large dividend yield, I think it's a great value investment trust to consider. The post 2 investment trusts I'd consider for long-term passive income appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
