GlobalFoundries (NASDAQ:GFS) Announces Quarterly Earnings Results

GlobalFoundries (NASDAQ:GFS) issued its earnings results on Tuesday. The company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.05, FiscalAI reports. The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.63 billion. GlobalFoundries had a net margin of 13.05% and a return on equity of 6.86%. The business’s revenue for the quarter was up 3.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.34 earnings per share. GlobalFoundries updated its Q2 2026 guidance to 0.250-0.350 EPS.

Here are the key takeaways from GlobalFoundries’ conference call:

• GLOBALFOUNDRIES reported a strong Q1 with $1.634 billion revenue, a record first-quarter gross margin of ~29% (+510 bps YoY), operating margin of 16.6%, $542M operating cash flow and $233M adjusted free cash flow, and repurchased $400M of shares.
• Management highlighted accelerating, high?value demand in optical networking and RF — announcing the OCI?capable SCALE silicon photonics platform, expecting silicon photonics to roughly double in 2026 and target >$1B run?rate exiting 2028, while SiGe capacity is oversubscribed into 2027 and being expanded.
• GF is shifting its business mix toward higher?margin “technology services” after the MIPS acquisition (Q1 tech services ~13%) and the expected close of the Synopsys ARC IP deal in H1; MIPS revenue is expected in the $60–100M zip code for 2026 and technology services should comprise a larger share of revenue going forward.
• Q2 guidance: revenue $1.76B ±$20M, gross margin ~28.5% ±100 bps, operating margin ~15.7% ±180 bps, diluted EPS ~$0.43 ±$0.05; full?year non?IFRS CapEx expected 15–20% of revenue with adjusted FCF margin ~10% skewed to H2.
• Management warned of near?term headwinds from geopolitical supply?chain pressures (Middle East conflict) and higher costs for specialty gases/chems (estimated ~0.5 percentage point margin impact per quarter) and expects some working?capital reversal in Q2.

GlobalFoundries Stock Performance

Shares of GFS traded down $3.06 during mid-day trading on Wednesday, hitting $70.98. 2,075,472 shares of the company traded hands, compared to its average volume of 4,010,744. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.95 and a current ratio of 2.62. The stock has a 50-day moving average price of $49.26 and a two-hundred day moving average price of $42.36. GlobalFoundries has a 1 year low of $31.51 and a 1 year high of $75.53. The stock has a market cap of $39.50 billion, a price-to-earnings ratio of 44.65, a P/E/G ratio of 2.67 and a beta of 1.71.

More GlobalFoundries News

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Q1 beat — GFS reported $0.40 EPS (vs. ~$0.35 expected) with revenue roughly in line; management highlighted growth versus a year ago. This beat underpins the recent rally. Read More.
• Positive Sentiment: Upbeat data?center outlook — management signaled stronger Q2 revenue driven by accelerating data?center deployments, which supports demand for high?margin specialty nodes. Read More.
• Positive Sentiment: New product / TAM expansion — GFS launched the SCALE co?packaged optics/photonic offering aimed at AI data centers, a strategic move to capture AI infrastructure dollars. Read More.
• Positive Sentiment: Analyst upgrades and bullish flows — multiple firms raised ratings/targets (Needham to $80, Cantor Fitzgerald and Susquehanna upgrades including a $100 PT reported), and unusually heavy call buying suggests bullish positioning by options traders. Read More.
• Neutral Sentiment: Insider selling disclosed (small, pre?arranged Rule 10b5?1 sales) — routine and relatively small in size, likely not a fundamental signal. Read More.
• Neutral Sentiment: SEC filing / 6?K and investor day activity — ongoing disclosures and new packaging announcements provide more data points for investors to evaluate execution. Read More.
• Negative Sentiment: Q2 EPS guidance was conservative — GFS set Q2 EPS at $0.25–$0.35, below consensus (~$0.39), which tempers the upside from the Q1 beat and may explain some profit?taking. Read More.
• Negative Sentiment: Mixed analyst landscape — while some firms hiked targets, others (e.g., Wedbush) keep a neutral stance with much lower targets, highlighting valuation and execution concerns that could weigh on the stock. Read More.

Insider Activity

In other GlobalFoundries news, insider Samak L. Azar sold 500 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $63.00, for a total value of $31,500.00. Following the completion of the transaction, the insider directly owned 16,494 shares in the company, valued at $1,039,122. This represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,300 shares of the company’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $60.69, for a total transaction of $139,587.00. Following the transaction, the insider owned 16,045 shares of the company’s stock, valued at approximately $973,771.05. This represents a 12.54% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 15,200 shares of company stock valued at $801,067 over the last three months.

Institutional Investors Weigh In On GlobalFoundries

Several hedge funds and other institutional investors have recently made changes to their positions in GFS. Invesco Ltd. boosted its holdings in shares of GlobalFoundries by 7.9% in the 3rd quarter. Invesco Ltd. now owns 2,962,385 shares of the company’s stock valued at $106,172,000 after buying an additional 217,866 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of GlobalFoundries by 9.9% in the 4th quarter. AQR Capital Management LLC now owns 2,865,046 shares of the company’s stock valued at $100,047,000 after purchasing an additional 257,254 shares during the period. Marshall Wace LLP increased its holdings in GlobalFoundries by 126.0% in the 4th quarter. Marshall Wace LLP now owns 2,382,003 shares of the company’s stock worth $83,180,000 after acquiring an additional 1,328,129 shares in the last quarter. Squarepoint Ops LLC grew its holdings in shares of GlobalFoundries by 55.4% during the fourth quarter. Squarepoint Ops LLC now owns 2,021,035 shares of the company’s stock worth $70,575,000 after buying an additional 720,846 shares in the last quarter. Finally, HRT Financial LP acquired a new position in GlobalFoundries in the fourth quarter valued at about $62,996,000.

Wall Street Analyst Weigh In

Several research analysts have issued reports on GFS shares. UBS Group reaffirmed a “neutral” rating on shares of GlobalFoundries in a report on Wednesday. TD Cowen reaffirmed a “buy” rating on shares of GlobalFoundries in a report on Thursday, February 12th. Dbs Bank cut shares of GlobalFoundries from a “moderate buy” rating to a “hold” rating in a report on Friday, February 13th. Morgan Stanley set a $65.00 target price on shares of GlobalFoundries in a report on Wednesday. Finally, Wedbush reissued a “neutral” rating and set a $50.00 price objective on shares of GlobalFoundries in a report on Monday. Eight research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $59.59.

About GlobalFoundries

GlobalFoundries, Inc (NASDAQ: GFS) is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.