Strong Financial Performance in Q2 2025: GlobalFoundries (GF) reported Q2 revenue of $1.688 billion, a 3% year-over-year increase, exceeding guidance midpoints. Adjusted free cash flow reached $277 million, contributing to a forecast of over $1 billion for the full year, reflecting robust operational execution.

Mixed Outlook by End Markets: GF anticipates mid-teen growth in the automotive sector and high-teen growth in communications infrastructure and data centers for 2025. However, smart mobile devices and IoT markets are expected to decline mid-single digits due to consumer demand uncertainties and inventory management issues.

Revamped Pricing Strategy: In response to market dynamics, GF adjusted its pricing strategy with specific customers, particularly in the smart mobile segment, leading to year-over-year ASP declines. The strategic shift aims to optimize long-term revenue, but could pressure margins in the near term.