GlobalFoundries (NASDAQ:GFS) Announces Earnings Results

Key Points

• GlobalFoundries beat Q1 expectations with $0.40 EPS vs. $0.35 expected and revenue of $1.634 billion, while reporting a record first‑quarter gross margin of ~29%, $542M operating cash flow and a $400M share repurchase.
• Management is pushing higher‑margin growth initiatives — launching the SCALE silicon photonics platform (targeting ~2x silicon photonics growth in 2026 and >$1B run‑rate by end‑2028), expanding oversubscribed SiGe capacity into 2027, and shifting mix toward technology services after the MIPS acquisition and the planned Synopsys ARC IP deal.
• Outlook is mixed: Q2 EPS guidance of $0.25–$0.35 came in below street estimates and management cited geopolitical supply‑chain pressures and higher specialty‑gas costs as near‑term headwinds, even as the stock jumped and analyst ratings/targets remain varied.

GlobalFoundries (NASDAQ:GFS - Get Free Report) issued its earnings results on Tuesday. The company reported $0.40 EPS for the quarter, beating analysts' consensus estimates of $0.35 by $0.05, FiscalAI reports. GlobalFoundries had a return on equity of 6.86% and a net margin of 13.05%.The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the previous year, the firm posted $0.34 earnings per share. GlobalFoundries's quarterly revenue was up 3.1% compared to the same quarter last year. 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

GFS stock traded up $2.18 on Tuesday, reaching $69.93. The company's stock had a trading volume of 3,678,545 shares, compared to its average volume of 3,967,885. GlobalFoundries has a 52 week low of $31.51 and a 52 week high of $72.70. The company has a market capitalization of $38.91 billion, a P/E ratio of 43.85, a price-to-earnings-growth ratio of 2.56 and a beta of 1.71. The firm has a fifty day moving average of $48.71 and a two-hundred day moving average of $42.09. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.62 and a quick ratio of 1.95.

Analysts Set New Price Targets

A number of equities analysts have commented on GFS shares. Wedbush restated a "neutral" rating and issued a $50.00 target price on shares of GlobalFoundries in a research note on Monday. Robert W. Baird lifted their target price on GlobalFoundries from $40.00 to $60.00 and gave the company an "outperform" rating in a research note on Thursday, February 12th. The Goldman Sachs Group lifted their target price on GlobalFoundries from $40.00 to $46.00 and gave the company a "neutral" rating in a research note on Wednesday, February 11th. Citigroup lifted their target price on GlobalFoundries from $42.00 to $49.00 and gave the company a "neutral" rating in a research note on Thursday, February 12th. Finally, Susquehanna restated a "neutral" rating and issued a $50.00 target price on shares of GlobalFoundries in a research note on Thursday, February 12th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $50.12.

Insider Buying and Selling

In other GlobalFoundries 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 transaction of $31,500.00. Following the completion of the transaction, the insider directly owned 16,494 shares of the company's stock, valued at approximately $1,039,122. This trade represents a 2.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Glenda Dorchak sold 4,000 shares of the business's stock in a transaction on 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 sale, the director directly owned 18,867 shares in the company, valued at $1,102,964.82. This represents a 17.49% 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. Insiders sold 15,200 shares of company stock valued at $801,067 in the last three months.

Institutional Trading of GlobalFoundries

Hedge funds and other institutional investors have recently modified their holdings of the company. Atlas Capital Advisors Inc. bought a new stake in shares of GlobalFoundries in the 4th quarter worth $35,000. Advisory Services Network LLC bought a new stake in shares of GlobalFoundries in the 3rd quarter worth $53,000. Caitong International Asset Management Co. Ltd raised its stake in shares of GlobalFoundries by 431.9% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,782 shares of the company's stock worth $62,000 after buying an additional 1,447 shares in the last quarter. Quarry LP raised its stake in shares of GlobalFoundries by 315.9% in the 4th quarter. Quarry LP now owns 1,859 shares of the company's stock worth $65,000 after buying an additional 1,412 shares in the last quarter. Finally, Empowered Funds LLC bought a new stake in shares of GlobalFoundries in the 4th quarter worth $67,000.

GlobalFoundries News Summary

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Q1 results beat consensus: GFS reported $0.40 EPS vs. $0.35 expected and revenue roughly in line at ~$1.63B, showing modest year‑over‑year growth and improved margins — a core reason investors pushed the stock higher. Read More.
• Positive Sentiment: Company forecasts stronger Q2 revenue driven by accelerating data‑center deployments, suggesting demand tailwinds in higher‑margin customers (helps forward revenue visibility despite EPS guidance). Read More.
• Positive Sentiment: Cantor Fitzgerald upgraded the stock ahead of investor day, and the company introduced its SCALE™ optical module for co‑packaged optics targeting AI data centers — both fuel optimism on TAM expansion into AI infrastructure. Read More. Read More.
• Neutral Sentiment: Routine regulatory filings and slide decks were posted (Form 6‑K, press release and conference materials) — useful for detail but not market moving by themselves. Read More. Read More.
• Neutral Sentiment: Small insider sales were disclosed (pre‑arranged 10b5‑1 plans) — notable for transparency but not signaling management loss of confidence. Read More.
• Negative Sentiment: Q2 EPS guidance came in below consensus: management guided to $0.25–$0.35 vs. ~$0.39 street estimate, limiting upside and raising questions on margins/timing of customer ramps. Read More.
• Negative Sentiment: Wedbush reaffirmed a "neutral" rating with a $50 PT — a reminder some analysts see material downside from current levels and could cap further gains until guidance proves out. Read More.

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.

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