GlobalFoundries (NASDAQ:GFS) Posts Earnings Results, Beats Estimates By $0.05 EPS

GlobalFoundries (NASDAQ:GFS) posted its quarterly earnings results on Tuesday. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.05, FiscalAI reports. The company had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.63 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The firm’s revenue for the quarter was up 3.1% on a year-over-year basis. During the same quarter in the prior year, the business 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 Down 2.0%

GFS stock traded down $1.43 during midday trading on Thursday, hitting $70.87. The stock had a trading volume of 7,479,038 shares, compared to its average volume of 4,115,150. The firm has a market cap of $39.43 billion, a price-to-earnings ratio of 50.99, a price-to-earnings-growth ratio of 2.92 and a beta of 1.71. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.62 and a quick ratio of 1.95. GlobalFoundries has a 52-week low of $31.51 and a 52-week high of $76.37. The business has a 50-day moving average of $49.79 and a two-hundred day moving average of $42.63.

Key Headlines Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Board approved GF’s first-ever quarterly dividend of $0.12 per share and a capital-allocation framework targeting returns of up to 50% of trailing 12‑month adjusted free cash flow via dividends and buybacks — a clear shareholder‑friendly move that supports valuation. GlobalFoundries Announces Inaugural Dividend and Growth Strategies at 2026 Investor Day
• Positive Sentiment: Q1 results beat EPS estimates and management raised/issued a constructive Q2 outlook; GF also launched SCALE AI photonics platform and highlighted AI‑centric demand — fundamentals and product news that support revenue/ margin expansion expectations. GlobalFoundries rises after Q2 outlook beat GLOBALFOUNDRIES (GFS) Is Up 12.3% After Launching SCALE AI Photonics Platform And Q1 2026 Results – Has The Bull Case Changed?
• Positive Sentiment: Several firms raised ratings and price targets (notably Susquehanna upgraded to Positive with a $100 PT and Needham raised its PT to $80), adding buy‑side momentum and coverage conviction. GlobalFoundries (NASDAQ:GFS) Upgraded by Susquehanna to Positive Rating Needham & Company LLC Boosts GlobalFoundries (NASDAQ:GFS) Price Target to $80.00
• Neutral Sentiment: Institutional flows are mixed — many funds both added and reduced positions in recent filings — implying active repositioning rather than unanimous conviction. (Quiver/filings cited in Investor Day materials.)
• Negative Sentiment: Material insider selling has been reported (multiple insiders sold shares over the past six months), which investors often view as a cautionary signal even if it’s not proof of company issues. GlobalFoundries Announces Inaugural Dividend and Growth Strategies at 2026 Investor Day
• Negative Sentiment: Management emphasized forward‑looking risks (geopolitical tensions, supply/operational disruptions, and dependence on policy funding) — these remain downside catalysts if execution or external conditions deteriorate.
• Negative Sentiment: Some investors may read the dividend as a shift toward returning cash rather than prioritizing aggressive capex/reinvestment, which could concern growth‑oriented holders if AI demand requires heavy capital intensity.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on GFS. Wedbush reaffirmed a “neutral” rating and issued a $50.00 price target on shares of GlobalFoundries in a report on Monday. Citigroup increased their price objective on GlobalFoundries from $49.00 to $70.00 and gave the company a “neutral” rating in a report on Wednesday. Weiss Ratings raised GlobalFoundries from a “sell (d)” rating to a “hold (c)” rating in a report on Monday, March 2nd. Susquehanna raised shares of GlobalFoundries from a “neutral” rating to a “positive” rating and increased their price target for the stock from $50.00 to $100.00 in a report on Wednesday. Finally, The Goldman Sachs Group restated a “neutral” rating and issued a $70.00 price objective on shares of GlobalFoundries in a research report on Tuesday. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $66.06.

Insider Buying and Selling at GlobalFoundries

In other news, insider Samak L. Azar sold 500 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $63.00, for a total value of $31,500.00. Following the sale, the insider directly owned 16,494 shares of the company’s stock, valued at approximately $1,039,122. This represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Glenda Dorchak sold 4,000 shares of GlobalFoundries stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $58.46, for a total value of $233,840.00. Following the completion of the transaction, the director directly owned 18,867 shares of the company’s stock, valued at approximately $1,102,964.82. This represents a 17.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 15,700 shares of company stock worth $836,067.

Hedge Funds Weigh In On GlobalFoundries

A number of hedge funds have recently bought and sold shares of GFS. Vontobel Holding Ltd. bought a new position in shares of GlobalFoundries in the 4th quarter worth approximately $203,000. Intesa Sanpaolo S.p.A. bought a new position in shares of GlobalFoundries in the 4th quarter worth approximately $158,000. Federation des caisses Desjardins du Quebec lifted its stake in shares of GlobalFoundries by 9.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 3,575 shares of the company’s stock worth $125,000 after purchasing an additional 305 shares during the period. Kestra Advisory Services LLC bought a new position in shares of GlobalFoundries in the 4th quarter worth approximately $119,000. Finally, State of Wyoming bought a new position in shares of GlobalFoundries in the 4th quarter worth approximately $116,000.

GlobalFoundries Company Profile

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.