GlobalFoundries (NASDAQ:GFS) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

GlobalFoundries (NASDAQ:GFS) announced its quarterly earnings data on Wednesday. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.02, FiscalAI reports. The firm had revenue of $1.90 billion during the quarter, compared to analysts’ expectations of $1.89 billion. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%. The company’s quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the firm 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 Stock Performance

Shares of NASDAQ:GFS traded down $3.84 during midday trading on Thursday, hitting $36.50. The company had a trading volume of 6,402,852 shares, compared to its average volume of 4,442,262. The company has a market cap of $20.03 billion, a price-to-earnings ratio of 28.57, a PEG ratio of 1.36 and a beta of 1.78. GlobalFoundries has a 12-month low of $32.02 and a 12-month high of $92.55. The company has a fifty day moving average of $46.18 and a two-hundred day moving average of $54.93. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.48 and a quick ratio of 1.74.

GlobalFoundries Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 14th. Shareholders of record on Tuesday, December 22nd will be given a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, December 22nd. GlobalFoundries’s dividend payout ratio (DPR) is presently 37.50%.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft set a $75.00 price objective on shares of GlobalFoundries in a report on Monday, August 10th. UBS Group reduced their target price on shares of GlobalFoundries from $61.00 to $55.00 and set a “neutral” rating for the company in a research note on Thursday, August 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of GlobalFoundries in a report on Wednesday, August 26th. Morgan Stanley reduced their target price on shares of GlobalFoundries from $60.00 to $56.00 and set an “equal weight” rating for the company in a research report on Monday. Finally, Zacks Research cut GlobalFoundries from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Eight research 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. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $71.53.

Key GlobalFoundries News

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Q3 adjusted earnings were $0.53 per share, topping the $0.51 consensus, while revenue of $1.90 billion edged past estimates and rose 12.5% year over year. The company also reported a record quarterly margin, adding to evidence of improving performance. GlobalFoundries Q3 results
• Neutral Sentiment: Analyst views remain mixed: Susquehanna kept a positive rating and Needham maintained a buy rating, while Wedbush rates the shares neutral. Their revised targets remain above the cited share price, but the estimates vary widely.
• Negative Sentiment: All three firms lowered their price targets. Wedbush cut its target from $72 to $45, Susquehanna reduced its target from $125 to $110, and Needham lowered its target from $80 to $55. The downward revisions may weigh on sentiment despite the quarterly beat.

Insider Activity at GlobalFoundries

In other GlobalFoundries news, insider Pradheepa Raman sold 6,760 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $51.12, for a total transaction of $345,571.20. The transaction was disclosed in a document filed 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. Over the last ninety days, insiders have sold 12,590 shares of company stock worth $620,877.

About GlobalFoundries

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.