GlobalFoundries (NASDAQ:GFS) Issues Earnings Results

GlobalFoundries (NASDAQ:GFS) released its earnings results on Wednesday. The company reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.51 by $0.02, FiscalAI reports. The company had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. GlobalFoundries had a net margin of 2.81% and a return on equity of 7.18%. The company’s revenue was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.44 EPS.

Here are the key takeaways from GlobalFoundries’ conference call:

• GLOBALFOUNDRIES reported third-quarter revenue of $1.899 billion and record non-IFRS gross margin of 31.4%, both at the high end of guidance. Fourth-quarter guidance calls for $2 billion in revenue and $0.59 diluted EPS at the midpoint.
• Demand for optical networking is accelerating: the company expects $500 million in silicon photonics revenue in 2026 and now targets a roughly $1 billion annualized run rate exiting 2027, a year ahead of its prior outlook. It plans to triple silicon photonics capacity next year and said demand has booked capacity through 2027, with customers seeking commitments into 2029 and beyond.
• The business mix is becoming more diversified, with more than two-thirds of third-quarter revenue coming from outside smart mobile devices. Communications infrastructure and data center revenue grew 81% year over year, while automotive grew 20% and home and industrial IoT grew 49%.
• GF plans approximately $4 billion in net CapEx for 2027 to expand capacity in high-demand technologies, supported in part by customer prepayments and government incentives. Management said these investments can be made within existing facilities and expects to maintain its free-cash-flow targets.
• Smart mobile devices, still 32% of third-quarter revenue, fell 19% year over year; GF expects the end market to decline by a low-teens percentage for 2026. The company also expects its diluted share count to rise to approximately 600 million in 2027 as U.S. government equity issuances are completed.

GlobalFoundries Stock Up 4.3%

GFS stock traded up $1.55 during mid-day trading on Friday, hitting $37.91. 1,508,771 shares of the company were exchanged, compared to its average volume of 4,463,703. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.74 and a current ratio of 2.48. The firm has a market cap of $20.80 billion, a P/E ratio of 108.95, a P/E/G ratio of 1.28 and a beta of 1.78. The firm’s 50 day simple moving average is $45.99 and its 200 day simple moving average is $54.90. GlobalFoundries has a 1-year low of $32.02 and a 1-year high of $92.55.

GlobalFoundries Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 14th. Shareholders of record on Tuesday, December 22nd will be paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, December 22nd. GlobalFoundries’s payout ratio is presently 137.14%.

Insiders Place Their Bets

In other news, insider Pradheepa Raman sold 6,760 shares of the company’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $51.12, for a total transaction of $345,571.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 12,590 shares of company stock valued at $620,877.

More GlobalFoundries News

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries beat Q3 estimates, reporting $0.53 in earnings per share versus $0.51 expected and $1.90 billion in revenue versus $1.89 billion expected. Revenue grew 12.5% year over year, and reports also highlighted improved, record margins and commitments supporting future growth. Margins Improve As GlobalFoundries Secures Commitments For Future Growth
• Positive Sentiment: TD Cowen maintained a Buy rating despite lowering its target to $60, while Susquehanna retained a Positive rating with a $110 target—indications that some analysts still see substantial upside. GlobalFoundries price target cut as Wedbush lowers valuation multiple
• Negative Sentiment: Several firms reduced their valuations. UBS cut its target from $48 to $43 and kept a Neutral rating; Citi lowered its target from $58 to $46, JPMorgan from $57 to $50, and Wedbush from $72 to $45, also maintaining Neutral ratings. Wedbush cited a lower valuation multiple, suggesting analysts are reassessing how much investors should pay for the shares.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Morgan Stanley cut their target price on shares of GlobalFoundries from $60.00 to $56.00 and set an “equal weight” rating for the company in a research report on Monday. Needham & Company LLC lowered their price target on GlobalFoundries from $80.00 to $55.00 and set a “buy” rating on the stock in a research report on Wednesday. Citigroup dropped their price objective on GlobalFoundries from $58.00 to $46.00 and set a “neutral” rating on the stock in a research note on Thursday. JPMorgan Chase & Co. cut their price objective on GlobalFoundries from $57.00 to $50.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of GlobalFoundries in a research note on Thursday, October 15th. Eight equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $67.79.

GlobalFoundries Company Profile

GlobalFoundries Inc (NASDAQ:GFS) is a semiconductor manufacturer that operates as a contract foundry, producing chips designed by other companies. The company provides wafer fabrication and related services for customers in the automotive, communications infrastructure, aerospace and defense, industrial, and consumer electronics markets.

GlobalFoundries specializes in differentiated semiconductor technologies rather than competing primarily in the most advanced logic-processing nodes. Its offerings include radio-frequency and silicon-on-insulator technologies, embedded memory, power-management solutions, high-voltage processes, silicon photonics, and other specialty platforms used in connectivity, sensing, automotive electronics, and edge-computing applications.

The company was established in 2009 through the separation of Advanced Micro Devices’ manufacturing operations, with investment from the Abu Dhabi-based Advanced Technology Investment Company.