GlobalFoundries (NASDAQ:GFS) Announces Earnings Results, Beats Expectations By $0.03 EPS

GlobalFoundries (NASDAQ:GFS) announced its quarterly earnings data on Wednesday. The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.43 by $0.03, FiscalAI reports. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The firm had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.77 billion. During the same period last year, the firm posted $0.42 EPS. GlobalFoundries’s revenue was up 5.8% on a year-over-year basis. 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 Stock Performance

Shares of GlobalFoundries stock traded up $0.94 during trading on Thursday, reaching $50.40. The company’s stock had a trading volume of 2,671,518 shares, compared to its average volume of 4,319,269. The business’s fifty day moving average price is $70.24 and its 200-day moving average price is $58.78. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.87 and a current ratio of 2.59. The firm has a market cap of $27.65 billion, a price-to-earnings ratio of 36.28, a price-to-earnings-growth ratio of 1.84 and a beta of 1.80. GlobalFoundries has a one year low of $31.51 and a one year high of $92.55.

GlobalFoundries Dividend Announcement

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

Key Stories Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: AI and data-center momentum strengthened. GlobalFoundries said demand for chips used in data centers—particularly optical products and silicon photonics—is accelerating. Management raised its 2026 data-center outlook and said the AI opportunity remains in its “early innings,” while new intellectual property could expand its addressable market. GlobalFoundries Q2 Earnings Call Highlights AI Data Center Momentum
• Positive Sentiment: Second-quarter results exceeded expectations. GlobalFoundries reported adjusted EPS of $0.46 versus consensus estimates near $0.43-$0.44, and revenue of $1.79 billion compared with expectations of approximately $1.77 billion. Revenue increased 5.8% year over year, supported by stronger data-center demand. GlobalFoundries tops second quarter estimates on AI chip demand
• Positive Sentiment: Dividend supports shareholder returns. GlobalFoundries declared a quarterly dividend of $0.12 per share, payable October 9 to shareholders of record September 23. The dividend represents an annualized yield of roughly 1%.
• Neutral Sentiment: Third-quarter outlook was broadly in line. The company guided to adjusted EPS of $0.46-$0.56, compared with consensus of $0.47, and revenue of about $1.9 billion, matching expectations. The range provides upside potential but did not deliver a major near-term forecast surprise.
• Negative Sentiment: Analyst downgrade pressured sentiment. Zacks Research downgraded GFS from “Strong Buy” to “Hold,” likely reinforcing profit-taking after the earnings release.
• Negative Sentiment: Investors may have expected an even larger AI-related upside. Despite the earnings beat, the stock’s reaction suggests expectations for AI infrastructure and silicon-photonics growth were already elevated. Reported insider activity was also heavily weighted toward selling, adding a cautious signal.

Insiders Place Their Bets

In other GlobalFoundries news, insider Michael James Hogan sold 500 shares of the stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $70.90, for a total transaction of $35,450.00. Following the sale, the insider directly owned 795 shares in the company, valued at $56,365.50. This represents a 38.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 335 shares of GlobalFoundries stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $77.36, for a total transaction of $25,915.60. Following the transaction, the insider directly owned 13,149 shares of the company’s stock, valued at $1,017,206.64. This represents a 2.48% decrease in their position. 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 90 days, insiders sold 18,950 shares of company stock valued at $1,375,905.

Institutional Trading of GlobalFoundries

A number of institutional investors have recently added to or reduced their stakes in GFS. Atlas Capital Advisors Inc. bought a new position in shares of GlobalFoundries during the fourth quarter valued at about $35,000. Advisory Services Network LLC bought a new stake in shares of GlobalFoundries in the 3rd quarter worth about $53,000. Caitong International Asset Management Co. Ltd increased its stake in GlobalFoundries by 431.9% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,782 shares of the company’s stock worth $62,000 after buying an additional 1,447 shares during the period. Quarry LP boosted its stake in shares of GlobalFoundries by 315.9% during the fourth quarter. Quarry LP now owns 1,859 shares of the company’s stock valued at $65,000 after purchasing an additional 1,412 shares in the last quarter. Finally, Empowered Funds LLC purchased a new position in shares of GlobalFoundries in the 4th quarter worth approximately $67,000.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Jefferies Financial Group set a $60.00 price target on GlobalFoundries in a research note on Wednesday. Robert W. Baird set a $140.00 price objective on shares of GlobalFoundries in a research note on Thursday. Loop Capital set a $80.00 price objective on shares of GlobalFoundries in a research report on Monday, May 4th. Citigroup increased their target price on shares of GlobalFoundries from $49.00 to $70.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Finally, Cantor Fitzgerald raised shares of GlobalFoundries from a “neutral” rating to an “overweight” rating and upped their target price for the company from $50.00 to $80.00 in a report on Monday, May 4th. Eight investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $74.94.

GlobalFoundries Company Profile

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.