GlobalFoundries (NASDAQ:GFS) Issues Earnings Results

GlobalFoundries (NASDAQ:GFS) issued its quarterly earnings results on Wednesday. The company reported $0.55 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.08, FiscalAI reports. The firm had revenue of $1.83 billion during the quarter, compared to the consensus estimate of $1.80 billion. GlobalFoundries had a positive return on equity of 6.64% and a negative net margin of 0.65%.The company’s revenue was up .0% on a year-over-year basis. During the same period last year, the company earned $0.46 earnings per share. GlobalFoundries updated its Q1 2026 guidance to 0.300-0.400 EPS.

Here are the key takeaways from GlobalFoundries’ conference call:

• GF reported solid Q4 and FY‑2025 results with $1.83B Q4 revenue, a 29% gross margin (up ~360 bps YoY), record adjusted free cash flow of $1.2B for 2025, and Q1 guidance of ~$1.625B revenue—all signaling improving profitability and cash generation.
• Management is aggressively building technology adjacent capabilities via acquisitions and partnerships—AMF/InfiniLink for silicon photonics, MIPS (and Synopsys Arc) for processor IP, and a TSMC GaN license—targeting a $1B silicon‑photonics run‑rate by end of 2028 and expanded physical‑AI product offerings.
• Design‑win momentum and customer diversification are accelerating: >500 design wins in 2025 (≈95% sole‑source), automotive revenue hit a record $1.4B, and communications infrastructure & data center grew ~29% in 2025 with management expecting >30% YoY growth in 2026.
• Board authorized a $500M share‑repurchase and GF expects to increase net CapEx to 15–20% of revenue in 2026 to fund capacity for hot corridors (SiPho, FDX, SiGe, packaging); management expects ~10% free‑cash‑flow margin for 2026, so near‑term investment may weigh on cash conversion even as buybacks support returns.

GlobalFoundries Stock Up 13.4%

NASDAQ:GFS traded up $5.60 during trading hours on Wednesday, reaching $47.50. The company’s stock had a trading volume of 3,347,887 shares, compared to its average volume of 3,960,214. The company has a market capitalization of $26.26 billion, a P/E ratio of -529.66, a price-to-earnings-growth ratio of 1.78 and a beta of 1.50. GlobalFoundries has a 12 month low of $29.77 and a 12 month high of $48.56. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.24 and a current ratio of 3.03. The stock has a 50 day moving average price of $39.84 and a two-hundred day moving average price of $36.26.

Key GlobalFoundries News

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Q4 results beat expectations: GA‑foundry posted $0.55 EPS vs. a $0.47 consensus and revenue of $1.83B vs. $1.80B, showing a modest upside to estimates and year‑over‑year EPS improvement. This earnings surprise is a primary driver of the stock strength. GlobalFoundries Inc. (GFS) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Relative strength signal — an 81 RS rating cited by coverage highlights improving market leadership, which can attract momentum and ETF flows into the name. Stocks showing rising market leadership: GlobalFoundries earns 81 RS rating
• Neutral Sentiment: Company press release and investor materials were posted (Q4/fiscal 2025 results, slide deck and call recording); these provide more detail for investors but largely confirm the published earnings figures. GlobalFoundries Reports Fourth Quarter 2025 and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Analyst write‑ups highlight which metrics moved versus estimates and year‑ago levels, useful for parsing the quality of the beat (mix, margins, ROE vs. net margin). These pieces help investors dig into unit economics rather than headline EPS. Here’s What Key Metrics Tell Us About GlobalFoundries (GFS) Q4 Earnings
• Neutral Sentiment: Coverage pieces on strategic moves (e.g., partnerships, board changes) have appeared; these could influence longer‑term sentiment but don’t immediately alter near‑term financials. Did Israel Telsys Partnership and Mubadala Board Move Just Shift GlobalFoundries’ (GFS) Investment Narrative?
• Negative Sentiment: Q1 2026 guidance disappointed versus consensus: EPS guided to $0.30–$0.40 (consensus ~$0.38) and revenue guided to ~$1.6–$1.7B vs. a ~$1.8B consensus — the revenue miss in particular is a material near‑term headwind and likely the main cause of any intraday weakness before the earnings beat was digested.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on GFS. UBS Group restated a “neutral” rating and issued a $45.00 price target on shares of GlobalFoundries in a research note on Monday, February 2nd. Citigroup boosted their price target on GlobalFoundries from $35.00 to $42.00 and gave the company a “neutral” rating in a report on Thursday, January 15th. Wall Street Zen downgraded shares of GlobalFoundries from a “buy” rating to a “hold” rating in a research report on Saturday, November 15th. BNP Paribas Exane began coverage on GlobalFoundries in a research report on Friday, October 24th. They set an “outperform” rating and a $45.00 target price for the company. Finally, Bank of America boosted their target price on shares of GlobalFoundries from $33.00 to $37.00 and gave the stock an “underperform” rating in a report on Thursday, December 4th. Four research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, GlobalFoundries presently has an average rating of “Hold” and a consensus price target of $42.23.

Institutional Trading of GlobalFoundries

Several hedge funds have recently modified their holdings of GFS. Royal Bank of Canada grew its position in shares of GlobalFoundries by 4.4% in the 1st quarter. Royal Bank of Canada now owns 15,583 shares of the company’s stock worth $575,000 after buying an additional 660 shares during the last quarter. AQR Capital Management LLC grew its holdings in GlobalFoundries by 77.6% in the first quarter. AQR Capital Management LLC now owns 102,048 shares of the company’s stock worth $3,679,000 after purchasing an additional 44,599 shares during the last quarter. Jones Financial Companies Lllp increased its position in shares of GlobalFoundries by 7,120.1% during the first quarter. Jones Financial Companies Lllp now owns 12,202 shares of the company’s stock worth $450,000 after purchasing an additional 12,033 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of GlobalFoundries by 3.4% during the 2nd quarter. American Century Companies Inc. now owns 27,606 shares of the company’s stock valued at $1,055,000 after purchasing an additional 903 shares during the last quarter. Finally, M&T Bank Corp acquired a new stake in shares of GlobalFoundries in the 2nd quarter worth $269,000.

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.