GlobalFoundries (NASDAQ:GFS) Announces Earnings Results, Beats Expectations By $0.05 EPS

GlobalFoundries (NASDAQ:GFS) released its quarterly earnings results on Tuesday. The company reported $0.40 earnings per share 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 firm had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period last year, the firm posted $0.34 EPS. The business’s revenue was up 3.1% on a year-over-year basis. 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 Trading Up 3.8%

Shares of NASDAQ GFS traded up $2.56 during midday trading on Tuesday, hitting $70.31. The stock had a trading volume of 4,123,419 shares, compared to its average volume of 3,974,125. The company’s 50-day simple moving average is $48.71 and its 200 day simple moving average is $42.09. The firm has a market cap of $39.12 billion, a P/E ratio of 44.23, a price-to-earnings-growth ratio of 2.56 and a beta of 1.71. GlobalFoundries has a fifty-two week low of $31.51 and a fifty-two week high of $72.70. 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 research analysts recently weighed in on GFS shares. Zacks Research raised GlobalFoundries from a “strong sell” rating to a “hold” rating in a report on Friday, January 30th. Cantor Fitzgerald raised GlobalFoundries from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $50.00 to $80.00 in a research note on Monday. 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. Weiss Ratings raised GlobalFoundries from a “sell (d)” rating to a “hold (c)” rating in a research note on Monday, March 2nd. Finally, UBS Group set a $50.00 target price on GlobalFoundries in a research note on Thursday, February 12th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $50.12.

Insider Activity

In other news, Director Glenda Dorchak sold 4,000 shares of GlobalFoundries 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 of the company’s stock, valued at approximately $1,102,964.82. This trade represents a 17.49% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 the firm’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $63.00, for a total value of $31,500.00. Following the completion of the transaction, the insider owned 16,494 shares in the company, valued at $1,039,122. This represents a 2.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 15,200 shares of company stock valued at $801,067.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in GFS. Royal Bank of Canada boosted its position in shares of GlobalFoundries by 4.4% in the 1st quarter. Royal Bank of Canada now owns 15,583 shares of the company’s stock worth $575,000 after purchasing an additional 660 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of GlobalFoundries by 77.6% in the 1st quarter. AQR Capital Management LLC now owns 102,048 shares of the company’s stock worth $3,679,000 after purchasing an additional 44,599 shares during the last quarter. Jones Financial Companies Lllp boosted its position in shares of GlobalFoundries by 7,120.1% in the 1st quarter. Jones Financial Companies Lllp now owns 12,202 shares of the company’s stock worth $450,000 after purchasing an additional 12,033 shares during the last quarter. American Century Companies Inc. boosted its position in shares of GlobalFoundries by 3.4% in the 2nd quarter. American Century Companies Inc. now owns 27,606 shares of the company’s stock worth $1,055,000 after purchasing an additional 903 shares during the last quarter. Finally, M&T Bank Corp bought a new position in shares of GlobalFoundries in the 2nd quarter worth $269,000.

Key Headlines Impacting GlobalFoundries

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.

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.