GlobalFoundries (NASDAQ:GFS) Issues Earnings Results

GlobalFoundries (NASDAQ:GFS) announced its quarterly earnings data on Wednesday. The company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.03, FiscalAI reports. The firm had revenue of $1.79 billion during the quarter, compared to analysts’ expectations of $1.77 billion. GlobalFoundries had a return on equity of 6.70% and a net margin of 10.36%.The company’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the firm 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 Up 5.9%

Shares of NASDAQ:GFS traded up $2.97 on Friday, reaching $53.33. 2,486,929 shares of the company traded hands, compared to its average volume of 4,320,520. The stock has a market capitalization of $29.26 billion, a P/E ratio of 41.70, a price-to-earnings-growth ratio of 1.75 and a beta of 1.80. GlobalFoundries has a 52 week low of $31.51 and a 52 week high of $92.55. The company has a current ratio of 2.59, a quick ratio of 1.87 and a debt-to-equity ratio of 0.13. The business’s 50-day simple moving average is $69.63 and its 200 day simple moving average is $58.85.

GlobalFoundries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 23rd will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 0.9%. The ex-dividend date is Wednesday, September 23rd. GlobalFoundries’s dividend payout ratio is presently 37.50%.

Insider Buying and Selling at GlobalFoundries

In related news, insider Michael James Hogan sold 2,800 shares of the business’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $82.88, for a total transaction of $232,064.00. Following the transaction, the insider owned 9,645 shares in the company, valued at $799,377.60. The trade was a 22.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 500 shares of GlobalFoundries stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $74.82, for a total value of $37,410.00. Following the sale, the insider directly owned 15,494 shares in the company, valued at approximately $1,159,261.08. The trade was a 3.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 18,950 shares of company stock valued at $1,375,905 in the last 90 days.

Institutional Investors Weigh In On GlobalFoundries

A number of hedge funds and other institutional investors have recently bought and sold shares of GFS. Kestra Advisory Services LLC acquired a new position in GlobalFoundries in the 4th quarter valued at about $119,000. Vontobel Holding Ltd. purchased a new stake in GlobalFoundries during the 4th quarter worth about $203,000. Advisors Asset Management Inc. boosted its position in shares of GlobalFoundries by 66.0% in the 4th quarter. Advisors Asset Management Inc. now owns 3,202 shares of the company’s stock valued at $112,000 after purchasing an additional 1,273 shares during the period. Federation des caisses Desjardins du Quebec increased its position in GlobalFoundries by 9.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 3,575 shares of the company’s stock valued at $125,000 after acquiring an additional 305 shares during the period. Finally, Intesa Sanpaolo S.p.A. acquired a new stake in GlobalFoundries in the fourth quarter valued at about $158,000.

Analyst Ratings Changes

A number of research analysts recently commented on GFS shares. Cantor Fitzgerald raised GlobalFoundries from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $50.00 to $80.00 in a research note on Monday, May 4th. TD Cowen lowered their price target on shares of GlobalFoundries from $85.00 to $75.00 and set a “buy” rating for the company in a report on Thursday. Citigroup increased their price objective on shares of GlobalFoundries from $49.00 to $70.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Jefferies Financial Group set a $60.00 price objective on GlobalFoundries in a research note on Wednesday. Finally, Morgan Stanley reiterated a “negative” rating and set a $60.00 price target on shares of GlobalFoundries in a report on Thursday. Eight research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $75.12.

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.