GlobalFoundries (NASDAQ:GFS) Issues Earnings Results, Beats Expectations By $0.08 EPS

GlobalFoundries (NASDAQ:GFS) released its quarterly earnings data on Wednesday. The company reported $0.55 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $0.08, FiscalAI reports. The company had revenue of $1.83 billion for the quarter, compared to the consensus estimate of $1.80 billion. GlobalFoundries had a return on equity of 6.94% and a net margin of 13.05%.The company’s quarterly revenue was up .0% on a year-over-year basis. During the same period in the previous year, the business 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 Performance

GlobalFoundries stock opened at $48.33 on Friday. The company has a market cap of $26.72 billion, a PE ratio of 30.37, a PEG ratio of 2.00 and a beta of 1.50. The company has a current ratio of 3.03, a quick ratio of 2.24 and a debt-to-equity ratio of 0.13. GlobalFoundries has a 1 year low of $29.77 and a 1 year high of $50.98. The company’s 50-day moving average is $40.27 and its two-hundred day moving average is $36.43.

Key Stories Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Earnings beat and buyback — Q4 results topped estimates (EPS $0.55 vs. $0.47) and the company announced buyback capacity (reported as up to $500M), driving strong investor demand after the print. Article Title
• Positive Sentiment: Analyst upgrades — Several firms raised price targets (Needham, Robert W. Baird among them) and bumped ratings toward Buy/Outperform, reinforcing the bullish case on margin expansion and secular demand for data-center & AI chips. Article Title
• Positive Sentiment: Strategic growth narrative — Management emphasized investments (silicon photonics, advanced packaging, GaN partnerships, “physical AI” end markets) and plans an investor webinar to detail silicon photonics / advanced packaging opportunities. Article Title
• Neutral Sentiment: Options flow spike — Unusually high call buying (≈15,176 calls) signals speculative positioning and short-term bullish interest but is not a fundamental change. (No external link provided.)
• Neutral Sentiment: Documentation available — Earnings call transcript and presentation were published, providing detail on guidance, margin outlook and demand trends for investors doing deeper diligence. Article Title
• Negative Sentiment: Not all bulls — Some firms (e.g., Wedbush) raised targets but retained a neutral stance, indicating some analysts view upside as limited at current valuations; elevated P/E (~30x) may temper further enthusiasm. Article Title

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GFS. JPMorgan Chase & Co. cut their price objective on GlobalFoundries from $40.00 to $35.00 and set a “neutral” rating for the company in a report on Thursday, November 13th. Susquehanna reissued a “neutral” rating and set a $50.00 price target on shares of GlobalFoundries in a report on Thursday. Needham & Company LLC boosted their price target on shares of GlobalFoundries from $42.00 to $55.00 and gave the company a “buy” rating in a research report on Thursday. Robert W. Baird raised their price objective on shares of GlobalFoundries from $40.00 to $60.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, Wedbush increased their price target on GlobalFoundries from $40.00 to $50.00 and gave the stock a “neutral” rating in a research report on Thursday. Six equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $46.13.

Hedge Funds Weigh In On GlobalFoundries

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. HRT Financial LP bought a new stake in shares of GlobalFoundries during the 4th quarter valued at $62,996,000. AQR Capital Management LLC grew its position in shares of GlobalFoundries by 168.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,607,792 shares of the company’s stock worth $93,463,000 after buying an additional 1,635,338 shares during the period. Squarepoint Ops LLC raised its position in shares of GlobalFoundries by 137.8% in the 3rd quarter. Squarepoint Ops LLC now owns 1,300,189 shares of the company’s stock valued at $46,599,000 after acquiring an additional 753,376 shares during the period. Two Sigma Investments LP raised its holdings in GlobalFoundries by 1,789.3% in the third quarter. Two Sigma Investments LP now owns 657,269 shares of the company’s stock worth $23,557,000 after purchasing an additional 622,480 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in shares of GlobalFoundries by 72.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,208,828 shares of the company’s stock valued at $42,212,000 after purchasing an additional 508,046 shares during the period.

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.