GlobalFoundries (NASDAQ:GFS) Issues Earnings Results, Beats Estimates By $0.03 EPS

GlobalFoundries (NASDAQ:GFS) issued its earnings results on Wednesday. The company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03, FiscalAI reports. The company had revenue of $1.79 billion for the quarter, compared to analysts’ expectations of $1.77 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The firm’s revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.42 EPS. GlobalFoundries updated its Q3 2026 guidance to 0.460-0.560 EPS.

Here are the key takeaways from GlobalFoundries’ conference call:

• Strong Q2 execution: Revenue rose 6% year over year to $1.786 billion, while non-IFRS gross margin reached 29.9%, up nearly 500 basis points year over year and above guidance. Q3 revenue is expected to reach $1.885 billion at the midpoint, with gross margin advancing to approximately 30.5%.
• AI data-center demand accelerated: Communications infrastructure and data-center revenue increased 62% year over year in Q2, driven by silicon photonics and silicon germanium. GF raised its full-year 2026 growth outlook for the segment to 50%-60% and said SiGe capacity is oversubscribed through 2027.
• Capacity expansion and government support are advancing photonics: GF plans to add capacity within its existing fab footprint and expects silicon photonics revenue to more than double in 2026. A planned $300 million U.S. Department of Commerce award is expected to support next-generation photonics, packaging, and near-/co-packaged optics capabilities.
• Strategic investments broaden long-term opportunities: GF highlighted new engagements in quantum manufacturing, integrated voltage regulators for AI data centers, and the acquired MIPS/Synopsys ARC processor-IP businesses. These initiatives are expected to generate near-term technology-services revenue but require increased R&D spending and are largely longer-term growth bets.
• Mobile weakness remains a headwind: GF now expects smart-mobile-device revenue to decline by a low-teens percentage in 2026, primarily because of memory pricing and shortages. Automotive revenue also fell 13% sequentially in Q2, although management continues to expect low-double-digit growth for the full year.

GlobalFoundries Trading Down 4.9%

Shares of GlobalFoundries stock traded down $2.56 during trading on Wednesday, reaching $49.46. 7,913,948 shares of the stock were exchanged, compared to its average volume of 3,829,239. The stock’s fifty day moving average is $70.24 and its 200 day moving average is $58.78. The firm has a market cap of $27.14 billion, a price-to-earnings ratio of 35.58, a price-to-earnings-growth ratio of 1.84 and a beta of 1.80. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13. GlobalFoundries has a 1 year low of $31.51 and a 1 year high of $92.55.

GlobalFoundries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 23rd will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Wednesday, September 23rd. GlobalFoundries’s dividend payout ratio (DPR) is 34.53%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $70.00 price objective on shares of GlobalFoundries in a research note on Tuesday, May 5th. JPMorgan Chase & Co. boosted their target price on GlobalFoundries from $45.00 to $70.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Wedbush restated a “neutral” rating and set a $50.00 target price on shares of GlobalFoundries in a report on Monday, May 4th. Weiss Ratings restated a “hold (c)” rating on shares of GlobalFoundries in a research report on Friday, May 29th. Finally, Loop Capital set a $80.00 price target on GlobalFoundries in a research note on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, GlobalFoundries presently has an average rating of “Hold” and an average price target of $73.81.

Trending Headlines about GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries reported second-quarter adjusted EPS of $0.46, above the roughly $0.43–$0.44 analyst consensus, while revenue of $1.79 billion exceeded expectations of approximately $1.77 billion. Revenue increased 5.8% year over year. GlobalFoundries Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management said demand for chips used in AI-related data centers is growing, supporting the company’s specialty-chip and silicon-photonics growth opportunity. However, executives characterized the AI data-center business as still being in its “early innings,” implying substantial longer-term potential. GlobalFoundries tops second quarter estimates on AI chip demand
• Positive Sentiment: The company declared a quarterly dividend of $0.12 per share, payable October 9 to shareholders of record September 23. The annualized payout is approximately $0.48 per share, for a stated yield of about 1%.
• Neutral Sentiment: Third-quarter guidance calls for adjusted EPS of $0.46–$0.56 and revenue of about $1.9 billion. Revenue is broadly in line with consensus, while the EPS midpoint is above estimates but the low end is below them. GlobalFoundries Surpasses Q2 Earnings and Revenue Estimates
• Negative Sentiment: The market’s negative response indicates that the quarterly beat may not have been sufficient to justify elevated expectations surrounding AI infrastructure, data-center demand and silicon photonics. Investors may have been looking for a larger outlook improvement or clearer evidence of near-term AI acceleration.
• Negative Sentiment: Reported insider activity has been heavily weighted toward sales over the past six months, with 35 sales versus one purchase. While insider transactions may reflect personal liquidity needs, the imbalance can add to investor caution.

Insider Buying and Selling at GlobalFoundries

In other GlobalFoundries news, insider Michael James Hogan sold 2,800 shares of the company’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $75.17, for a total value of $210,476.00. Following the completion of the transaction, the insider directly owned 6,695 shares in the company, valued at approximately $503,263.15. This represents a 29.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 500 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $74.82, for a total value of $37,410.00. Following the completion of the transaction, the insider directly owned 15,494 shares of the company’s stock, valued at $1,159,261.08. This represents a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 19,450 shares of company stock valued at $1,412,000.

Hedge Funds Weigh In On GlobalFoundries

A number of hedge funds have recently bought and sold shares of the company. US Bancorp DE boosted its stake in GlobalFoundries by 25.1% during the 3rd quarter. US Bancorp DE now owns 5,825 shares of the company’s stock valued at $209,000 after purchasing an additional 1,170 shares during the last quarter. Vontobel Holding Ltd. bought a new position in shares of GlobalFoundries during the 4th quarter valued at $203,000. Intesa Sanpaolo S.p.A. purchased a new position in shares of GlobalFoundries in the 4th quarter worth $158,000. Federation des caisses Desjardins du Quebec boosted 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 buying an additional 305 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in shares of GlobalFoundries in the fourth quarter worth $119,000.

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.