GlobalFoundries Inc. (GFS) disclosed a secondary offering of 20 million ordinary shares at $42.00 per share, a transaction that will not generate proceeds for the company because the shares are being sold by Mubadala Technology Investment Company, a wholly owned subsidiary of Mubadala Investment Company PJSC, GFS’s largest shareholder. The offering is expected to close on March 13, 2026, subject to customary closing conditions.
In conjunction with the secondary offering, GFS will repurchase $300 million of the selling shareholder’s ordinary shares at the same price per share. The repurchase is part of a $500 million share‑repurchase authorization approved by the board in February 2026 and will be funded from the company’s cash reserves. The buyback is intended to offset the dilution created by the secondary offering and to return value to shareholders.
GFS reported Q4 2025 revenue of $1.83 billion, an 8% quarter‑over‑quarter increase driven by strong demand in its automotive and data‑center segments. Earnings per share were $0.55, beating analyst expectations by $0.11. Gross margin expanded to 29% and operating margin reached 18.3%, reflecting pricing power and disciplined cost management. Automotive revenue grew 62% QoQ and 30% YoY, while data‑center demand continued to lift the company’s core business.
Silicon photonics revenue exceeded $200 million in 2025 and is expected to nearly double again in 2026, underscoring GFS’s focus on high‑margin specialty technologies. The company’s diversified customer base and mature process technology portfolio support its continued growth in automotive, smart‑mobile, IoT, and data‑center markets.
Investors reacted negatively to the announcement, citing concerns about dilution from the secondary offering. Management remains confident that the share repurchase will help maintain the company’s capital structure and support shareholder value.
The transaction balances the dilution from the secondary offering with a substantial share repurchase, signals confidence in GFS’s financial position, and preserves the company’s strong cash position while providing liquidity to its largest shareholder. The move is a material corporate action that warrants coverage.
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