How GlobalFoundries' Latest Numbers Set the Stage for the Next Chapter

GlobalFoundries (GFS) has just posted its FY 2025 first half results, with revenue of US$3.3 billion and basic EPS of US$0.79, against a backdrop of recent trailing 12 month losses and a current share price of US$48.74. The company has seen revenue move from US$3.2 billion in the first half of 2024 to US$3.3 billion in the first half of 2025, while EPS shifted from US$0.52 to US$0.79 over the same periods. This sets up a contrast with the trailing 12 month EPS of a US$0.21 loss and reminds investors that the real story is whether margins can move toward sustainable profitability.

With the headline figures on the table, the next step is to see how these results line up against the widely shared narratives around GlobalFoundries' growth prospects, risk profile, and path to stronger margins.

LTM still shows a US$115m loss

• On a trailing 12 month basis, GlobalFoundries posted total revenue of US$6.8b and a net loss of US$115 million, even though the latest half on its own showed net income of US$438 million.
• Consensus narrative points to profit margin expansion over the next few years, yet the current LTM loss means the company is still in the phase of turning that view into actual results.
  • Analysts are assuming margins could move from roughly a loss position today to about 16.3% in three years. However, the LTM net loss shows that shift is not visible in the reported numbers yet.
  • The contrast between a profitable recent half and a loss over the full LTM period is exactly what analysts are watching, because it highlights how dependent the story is on sustaining better halves like FY 2025 H1.

Losses have been shrinking at 32.1% a year

• Over the past five years, GlobalFoundries has reduced its losses at an annualized rate of 32.1%, which aligns with forecasts for earnings to grow about 26.11% per year and for the company to turn profitable within three years.
• Bulls argue that growing demand for specialty chips and capital efficient expansion can support this transition, and the recent numbers provide both support and challenges for that view.
  • Support comes from the swing between a net loss of US$553 million in FY 2024 H2 and net income of US$438 million in FY 2025 H1, which is a sizeable change in just two reported halves.
  • At the same time, the LTM net loss of US$115 million and LTM EPS loss of US$0.21 mean the bullish view still depends heavily on the idea that recent profitability can be repeated and scaled, not just appear in a single half.

Want to see how those bullish assumptions about margins and earnings stack up against the detailed forecasts and scenarios? 🐂 GlobalFoundries Bull Case

P/S at 4x while price sits above DCF fair value

• GlobalFoundries is trading on a P/S of 4x, below the cited US semiconductor industry average of 5.9x and peer average of 9.2x, yet the current share price of US$48.74 is above the DCF fair value of about US$36.60.
• Bears focus on this gap between price and DCF fair value, while also pointing to GlobalFoundries’ limited presence in advanced nodes as a risk if growth tilts even more toward leading edge technologies.
  • The lower P/S multiple offers some support to investors who compare sales multiples across the sector, but the share price premium to the DCF fair value keeps the cautious view in focus.
  • Because the company is still loss making on a trailing 12 month basis, skeptics argue that relying only on relative P/S and forecasts is risky, and they continue to question whether future earnings will justify paying above that DCF number.

Curious how skeptics connect today’s 4x P/S and the US$36.60 DCF fair value to their longer term thesis? 🐻 GlobalFoundries Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GlobalFoundries on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers in a different light? Take a couple of minutes to test your own view against the data and turn it into a full narrative: Do it your way

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding GlobalFoundries.

See What Else Is Out There

GlobalFoundries is still loss making on a trailing 12 month basis and trades above its DCF fair value, which keeps valuation and earnings quality in question.

If that mix of recent losses and a price above fair value gives you pause, take a look at our 51 high quality undervalued stocks that pair stronger fundamentals with more compelling pricing right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.