GlobalFoundries' second quarter revenue and EPS beat estimates, with non-IFRS gross margin nearing 30%.

GlobalFoundries reported second-quarter revenue of $1.786 billion, an increase of 6% year-over-year, beating analyst expectations. The company posted non-IFRS diluted earnings per share of $0.46, up 10% from the prior-year period and also ahead of estimates.

Key Highlights

• Revenue of $1.786 billion beat the $1.76 billion analyst consensus, driven by strong momentum in strategic growth areas like AI data centers.
• Non-IFRS gross margin expanded to 29.9% from 25.2% a year ago, surpassing the 28.5% estimate and approaching the company's 30% year-end target.
• Non-IFRS diluted EPS of $0.46 topped the $0.44 estimate, growing 10% year-over-year.
• The company cited accelerating customer demand in Optical Networking for AI data centers, leveraging its silicon photonics and silicon germanium technologies.