GlobalFoundries (NASDAQ:GFS) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

GlobalFoundries (NASDAQ:GFS) announced its earnings results on Wednesday. The company reported $0.53 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.02, FiscalAI reports. The firm had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.89 billion. GlobalFoundries had a net margin of 10.36% and a return on equity of 6.69%. The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.44 EPS.

Here are the key takeaways from GlobalFoundries’ conference call:

• GLOBALFOUNDRIES reported third-quarter revenue of $1.899 billion and record non-IFRS gross margin of 31.4%, both at the high end of guidance. Fourth-quarter guidance calls for $2 billion in revenue and $0.59 diluted EPS at the midpoint.
• Demand for optical networking is accelerating: the company expects $500 million in silicon photonics revenue in 2026 and now targets a roughly $1 billion annualized run rate exiting 2027, a year ahead of its prior outlook. It plans to triple silicon photonics capacity next year and said demand has booked capacity through 2027, with customers seeking commitments into 2029 and beyond.
• The business mix is becoming more diversified, with more than two-thirds of third-quarter revenue coming from outside smart mobile devices. Communications infrastructure and data center revenue grew 81% year over year, while automotive grew 20% and home and industrial IoT grew 49%.
• GF plans approximately $4 billion in net CapEx for 2027 to expand capacity in high-demand technologies, supported in part by customer prepayments and government incentives. Management said these investments can be made within existing facilities and expects to maintain its free-cash-flow targets.
• Smart mobile devices, still 32% of third-quarter revenue, fell 19% year over year; GF expects the end market to decline by a low-teens percentage for 2026. The company also expects its diluted share count to rise to approximately 600 million in 2027 as U.S. government equity issuances are completed.

GlobalFoundries Price Performance

NASDAQ:GFS traded down $2.94 during trading hours on Wednesday, reaching $39.95. 5,402,401 shares of the company were exchanged, compared to its average volume of 4,411,536. The business has a 50 day moving average of $46.29 and a 200 day moving average of $54.93. GlobalFoundries has a 1-year low of $32.02 and a 1-year high of $92.55. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.48 and a quick ratio of 1.74. The company has a market capitalization of $21.92 billion, a P/E ratio of 31.34, a P/E/G ratio of 1.33 and a beta of 1.78.

Trending Headlines about GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: For the quarter ended September 2026, GlobalFoundries reported adjusted earnings of $0.53 per share, above the $0.51 consensus estimate, and revenue of $1.90 billion, slightly ahead of estimates. Revenue rose 12.5% year over year. GlobalFoundries Reports Third Quarter 2026 Financial Results
• Negative Sentiment: A report says Morgan Stanley lowered its expectations for GlobalFoundries, which could temper investor optimism despite the quarterly beat. The article’s headline does not specify the size or details of the change. Morgan Stanley Has Lowered Expectations for GlobalFoundries
• Negative Sentiment: A separate analysis questions whether the shares are fully valued given cash-flow concerns, potentially adding pressure on the stock. Is GlobalFoundries Fully Priced, Or Is Cash Flow Falling Short?

Insiders Place Their Bets

In related news, insider Pradheepa Raman sold 2,145 shares of the stock in a transaction that occurred on Monday, September 28th. The shares were sold at an average price of $48.83, for a total transaction of $104,740.35. Following the sale, the insider owned 2,145 shares in the company, valued at approximately $104,740.35. This trade represents a 50.00% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 12,925 shares of company stock worth $637,054 over the last three months.

Analysts Set New Price Targets

Several research analysts recently commented on the company. BNP Paribas Exane cut GlobalFoundries from an “outperform” rating to a “neutral” rating and set a $51.00 price target for the company. in a research report on Monday, October 5th. TD Cowen reissued a “buy” rating and issued a $75.00 target price on shares of GlobalFoundries in a research note on Thursday, October 15th. Weiss Ratings restated a “hold (c)” rating on shares of GlobalFoundries in a report on Wednesday, August 26th. Deutsche Bank Aktiengesellschaft set a $75.00 price objective on shares of GlobalFoundries in a research report on Monday, August 10th. Finally, Morgan Stanley lowered their price objective on shares of GlobalFoundries from $60.00 to $56.00 and set an “equal weight” rating on the stock in a research note on Monday. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $75.58.

GlobalFoundries Company Profile

GlobalFoundries Inc (NASDAQ:GFS) is a semiconductor manufacturer that operates as a contract foundry, producing chips designed by other companies. The company provides wafer fabrication and related services for customers in the automotive, communications infrastructure, aerospace and defense, industrial, and consumer electronics markets.

GlobalFoundries specializes in differentiated semiconductor technologies rather than competing primarily in the most advanced logic-processing nodes. Its offerings include radio-frequency and silicon-on-insulator technologies, embedded memory, power-management solutions, high-voltage processes, silicon photonics, and other specialty platforms used in connectivity, sensing, automotive electronics, and edge-computing applications.

The company was established in 2009 through the separation of Advanced Micro Devices’ manufacturing operations, with investment from the Abu Dhabi-based Advanced Technology Investment Company.