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GlobalFoundries Inc
(NASDAQ:GFS)
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Rating:69Neutral
Price Target:
$98.00
▲(79.00% Upside)
Action:Downgraded
Date:05/28/26
The score is driven primarily by improving financial performance (profitability recovery, low leverage, and strong free cash flow) and a constructive earnings-call outlook with continued margin expansion and strategic momentum. These positives are tempered by demanding valuation (high P/E, no dividend yield provided) and technically overextended conditions (RSI/Stoch elevated), which raise near-term downside risk.
Positive Factors
Margin recovery and expansion
Material gross-margin expansion (record +510 bps YoY) reflects improved mix and operating leverage tied to higher-margin corridors. Sustained margin improvement supports durable EBIT conversion, funds reinvestment and returns, and reduces cyclic earnings volatility if mix holds.
Negative Factors
Choppy, cyclical revenue trajectory
Revenue volatility over multiple years underscores exposure to semiconductor cyclicality and end-market swings. Persistent top-line inconsistency can complicate capacity planning, margin sustainability and multi-year investment returns even as recent YoY recovery appears.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery and expansion
Material gross-margin expansion (record +510 bps YoY) reflects improved mix and operating leverage tied to higher-margin corridors. Sustained margin improvement supports durable EBIT conversion, funds reinvestment and returns, and reduces cyclic earnings volatility if mix holds.
Read all positive factors
GlobalFoundries Inc Key Performance Indicators (KPIs)
Any
Revenue by End Market
Analyzes revenue generated from different sectors, highlighting which markets are driving growth and where the company might face challenges or opportunities.
Analyzes revenue generated from different sectors, highlighting which markets are driving growth and where the company might face challenges or opportunities.
Data provided by:
The Fly
The FlyGlobalFoundries Inc (GFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.78B
Dividend YieldN/A
Average Volume (3M)5.55M
Price to Earnings (P/E)57.4
Beta (1Y)1.76
Revenue Growth0.80%
EPS GrowthN/A
CountryUS
Employees13,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.41
Shares Outstanding548,700,800
10 Day Avg. Volume3,210,215
30 Day Avg. Volume5,551,368
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.63
Price to Sales (P/S)2.86
P/FCF Ratio19.26
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit24.42
Enterprise Value/Ebitda20.16
Forecast
1Y Price Target
$80.31Price Target Upside46.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.89
Revenue Forecast (FY)$7.24B
GlobalFoundries Inc Business Overview & Revenue Model
Company Description
GLOBALFOUNDRIES Inc. operates as a prominent global semiconductor foundry, specializing in the creation of integrated circuits. These vital components are instrumental in powering a wide array of ubiquitous electronic devices. The company's divers...
How the Company Makes Money
GlobalFoundries primarily makes money by selling semiconductor manufacturing services. Its main revenue stream is foundry revenue from producing customer-designed chips on silicon wafers, typically priced based on factors such as wafer starts/wafe...
GlobalFoundries Inc Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call highlights strong operational execution and profitability improvements, driven by higher-margin end-market mix (communications/data center, automotive), record gross margin expansion (+510 bps YoY), robust cash generation and accelerating design-win momentum (50% YoY increase). Strategic progress in silicon photonics and SiGe (capacity oversubscription into 2027), M&A (MIPS closed, Synopsys ARC pending) and large customer partnerships reinforce a positive multi-year growth and margin story. Offsetting this are near-term cyclical pressures: sequential revenue decline (-11% Q1), softness in smart mobile (-15% seq) and IoT (-22% YoY) alongside expected working-capital normalization, higher Q2 CapEx, and incremental supply-chain costs tied to geopolitical risks (~0.5 pt margin headwind per quarter). Overall, positives around margin expansion, secular growth in high-value corridors, strong balance sheet and clear strategic momentum materially outweigh the manageable short-term headwinds.Positive Updates
Revenue and Shipments
Q1 revenue of $1.634B (down 11% sequentially, up 3.1% YoY); shipped ~579 300-mm equivalent wafers (down 6% sequentially, up 7% YoY).
Negative Updates
Sequential Revenue Decline
Total revenue down 11% sequentially in Q1, reflecting near-term cyclical softness in certain end markets (notably smart mobile and IoT).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Shipments
Q1 revenue of $1.634B (down 11% sequentially, up 3.1% YoY); shipped ~579 300-mm equivalent wafers (down 6% sequentially, up 7% YoY).
Read all positive updates
Company Guidance
GF guided Q2 2026 revenue of $1.76 billion ± $25 million with gross margin ~28.5% ±100 bps (midpoint = ~300 bps YoY expansion), non‑IFRS operating expenses ex‑SBC of $225 million ± $10 million, operating margin 15.7% ±180 bps, share‑based compensation ≈ $71 million (≈ $19M in COGS), net interest & other between -$6M and $2M, and tax expense $28M–$48M (full‑year effective tax rate expected in the high‑teens); EPS guidance was $0.43 ± $0.05 on ~555M diluted shares. They expect Q2 net CapEx to rise, full‑year net CapEx ~15–20% of revenue, and adjusted free cash flow margin ≈10% for 2026 (skewed to H2). For context, Q1 actuals included $1.634B revenue, 29% gross margin (+510 bps YoY), $271M operating profit (16.6% OM), $227M net income, $0.40 diluted EPS, $542M cash from operations, $309M net CapEx (~19% of revenue), $233M adjusted FCF (≈14% margin), ~$3.8B cash & equivalents, $1.1B debt, and $400M of share repurchases completed.GlobalFoundries Inc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.84B | 6.79B | 6.75B | 7.39B | 8.11B | 6.58B |
| Gross Profit | 1.81B | 1.71B | 1.65B | 2.10B | 2.24B | 1.01B |
| EBITDA | 2.19B | 2.23B | 1.50B | 2.64B | 3.25B | 1.54B |
| Net Income | 778.00M | 885.00M | -265.00M | 1.02B | 1.45B | -250.00M |
Balance Sheet | ||||||
| Total Assets | 16.90B | 17.14B | 16.80B | 18.04B | 17.84B | 15.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.00B | 3.05B | 3.39B | 3.47B | 3.05B | 2.96B |
| Total Debt | 1.72B | 1.71B | 2.32B | 2.75B | 2.86B | 2.44B |
| Total Liabilities | 5.15B | 5.16B | 5.97B | 6.89B | 7.88B | 7.00B |
| Stockholders Equity | 11.69B | 11.93B | 10.78B | 11.10B | 9.91B | 7.97B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.01B | 1.10B | 321.00M | -435.00M | 1.07B |
| Operating Cash Flow | 1.94B | 1.73B | 1.72B | 2.13B | 2.62B | 2.84B |
| Investing Cash Flow | -1.11B | -1.27B | -1.13B | -1.88B | -4.06B | -1.45B |
| Financing Cash Flow | -578.00M | -845.00M | -785.00M | -212.00M | 842.00M | 650.00M |
GlobalFoundries Inc Technical Analysis
Neutral
54.75
Price Trends
73.95
Positive
59.69
Positive
48.10
Positive
Market Momentum
2.79
Positive
50.30
Neutral
40.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFS, the sentiment is Neutral. The current price of 54.75 is below the 20-day moving average (MA) of 81.56, below the 50-day MA of 73.95, and above the 200-day MA of 48.10, indicating a neutral trend. The MACD of 2.79 indicates Positive momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GFS.
GlobalFoundries Inc Risk Analysis
GlobalFoundries Inc disclosed 66 risk factors in its most recent earnings report. GlobalFoundries Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have significant exposure to the Secured Overnight Financing Rate ("SOFR") and other floating interest rates and fluctuations in interest rates may have adverse effects on our financial condition and results of operations. Q4, 2023
2.
Our management has identified material weaknesses in our ICFR and has concluded that our ICFR was not effective as of December 31, 2023, which may have a material adverse result on our results of operation and financial condition for future periods. Q4, 2023
3.
If we are unable to successfully deploy AI/ML across our products and services and our business operations and adequately anticipate and account for legal, regulatory and social developments in the AI/ML space, we may become less competitive against our peers and we may incur significant costs that do not provide us with commensurate returns. Q4, 2023
GlobalFoundries Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $64.67B | 40.90 | 13.50% | 6.06% | 7.52% | 17.94% | |
70 Outperform | $19.51B | 46.78 | 9.96% | 0.81% | 12.71% | 37.49% | |
69 Neutral | $43.78B | 57.45 | 6.66% | ― | 0.80% | ― | |
63 Neutral | $35.53B | 62.82 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $86.95B | 57.79 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $63.71B | 427.66 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
GFS
GlobalFoundries Inc
81.00
42.86
112.35%
ASX
ASE Technology Holding Co
42.13
32.07
318.62%
AMKR
Amkor
82.34
61.53
295.66%
ON
ON Semiconductor
88.57
36.16
68.99%
STM
STMicroelectronics
74.79
44.65
148.16%
UMC
United Micro
26.84
19.19
250.85%
GlobalFoundries Inc Corporate Events
GlobalFoundries Sets July 28, 2026 Hybrid AGM to Elect Directors and Ratify Auditor
Jun 15, 2026
GlobalFoundries Inc. has called its 2026 annual general meeting of shareholders for July 28, 2026, to be held both at its New York City offices and via live webcast for holders of record as of June 1, 2026. Shareholders will vote on the election o...
GlobalFoundries Debuts Dividend and Capital Return Plan at 2026 Investor Day
May 7, 2026
At its Investor Day on May 7, 2026 in Malta, N.Y., GlobalFoundries outlined a long-term growth roadmap centered on supplying semiconductors that power AI data centers and embed AI into the physical world, leveraging its geographically diversified ...
GlobalFoundries Delivers Strong Q1 2026 Results and Expands Silicon Photonics and Automotive Partnerships
May 5, 2026
GlobalFoundries reported preliminary first-quarter 2026 results on May 5, 2026, posting revenue of $1.63 billion, IFRS net income of $104 million, and a gross margin of 27.6%, with non-IFRS profit metrics at or above guidance and strong cash gener...
GlobalFoundries Files Q1 2026 Unaudited Financials and Management Analysis
May 5, 2026
On May 5, 2026, GlobalFoundries Inc. filed a Form 6-K with U.S. regulators for the month of May as a foreign private issuer, providing investors with unaudited interim condensed consolidated financial statements as of March 31, 2026, and December ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.