GlobalFoundries (NASDAQ:GFS) Announces Earnings Results

GlobalFoundries (NASDAQ:GFS) announced its quarterly earnings results on Wednesday. The company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.43 by $0.03, FiscalAI reports. The business had revenue of $1.79 billion for the quarter, compared to analysts’ expectations of $1.77 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The business’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the company 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 Down 4.9%

GlobalFoundries stock traded down $2.56 during midday trading on Wednesday, reaching $49.46. The stock had a trading volume of 7,913,948 shares, compared to its average volume of 3,829,239. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13. GlobalFoundries has a 52-week low of $31.51 and a 52-week high of $92.55. The firm has a market cap of $27.14 billion, a price-to-earnings ratio of 35.58, a price-to-earnings-growth ratio of 1.84 and a beta of 1.80. The company has a fifty day moving average of $70.24 and a 200 day moving average of $58.78.

GlobalFoundries Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 23rd will be issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, September 23rd. GlobalFoundries’s dividend payout ratio is presently 34.53%.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Zacks Research raised GlobalFoundries from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 6th. Arete Research set a $95.00 price target on shares of GlobalFoundries in a research report on Wednesday, June 10th. Loop Capital set a $80.00 price objective on shares of GlobalFoundries in a research note on Monday, May 4th. Citigroup lifted their price target on GlobalFoundries from $49.00 to $70.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Finally, Robert W. Baird set a $100.00 price objective on GlobalFoundries in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $73.81.

GlobalFoundries News Roundup

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries reported second-quarter adjusted EPS of $0.46, above the roughly $0.43–$0.44 analyst consensus, while revenue of $1.79 billion exceeded expectations of approximately $1.77 billion. Revenue increased 5.8% year over year. GlobalFoundries Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management said demand for chips used in AI-related data centers is growing, supporting the company’s specialty-chip and silicon-photonics growth opportunity. However, executives characterized the AI data-center business as still being in its “early innings,” implying substantial longer-term potential. GlobalFoundries tops second quarter estimates on AI chip demand
• Positive Sentiment: The company declared a quarterly dividend of $0.12 per share, payable October 9 to shareholders of record September 23. The annualized payout is approximately $0.48 per share, for a stated yield of about 1%.
• Neutral Sentiment: Third-quarter guidance calls for adjusted EPS of $0.46–$0.56 and revenue of about $1.9 billion. Revenue is broadly in line with consensus, while the EPS midpoint is above estimates but the low end is below them. GlobalFoundries Surpasses Q2 Earnings and Revenue Estimates
• Negative Sentiment: The market’s negative response indicates that the quarterly beat may not have been sufficient to justify elevated expectations surrounding AI infrastructure, data-center demand and silicon photonics. Investors may have been looking for a larger outlook improvement or clearer evidence of near-term AI acceleration.
• Negative Sentiment: Reported insider activity has been heavily weighted toward sales over the past six months, with 35 sales versus one purchase. While insider transactions may reflect personal liquidity needs, the imbalance can add to investor caution.

Insider Buying and Selling at GlobalFoundries

In related news, insider Samak L. Azar sold 500 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $74.82, for a total transaction of $37,410.00. Following the completion of the sale, the insider directly owned 15,494 shares of the company’s stock, valued at approximately $1,159,261.08. This trade represents a 3.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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, July 20th. The shares were sold at an average price of $58.22, for a total value of $232,880.00. Following the transaction, the director owned 14,867 shares of the company’s stock, valued at approximately $865,556.74. The trade was a 21.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 19,450 shares of company stock worth $1,412,000 over the last 90 days.

Institutional Trading of GlobalFoundries

A number of large investors have recently made changes to their positions in GFS. Invesco Ltd. lifted its holdings in GlobalFoundries by 7.9% during the 3rd quarter. Invesco Ltd. now owns 2,962,385 shares of the company’s stock valued at $106,172,000 after buying an additional 217,866 shares in the last quarter. AQR Capital Management LLC grew its stake in GlobalFoundries by 9.9% in the 4th quarter. AQR Capital Management LLC now owns 2,865,046 shares of the company’s stock worth $100,047,000 after acquiring an additional 257,254 shares in the last quarter. Marshall Wace LLP increased its position in shares of GlobalFoundries by 126.0% during the fourth quarter. Marshall Wace LLP now owns 2,382,003 shares of the company’s stock worth $83,180,000 after acquiring an additional 1,328,129 shares during the period. Squarepoint Ops LLC increased its position in shares of GlobalFoundries by 55.4% during the fourth quarter. Squarepoint Ops LLC now owns 2,021,035 shares of the company’s stock worth $70,575,000 after acquiring an additional 720,846 shares during the period. Finally, HRT Financial LP bought a new stake in shares of GlobalFoundries during the fourth quarter valued at approximately $62,996,000.

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.