GlobalFoundries Inc (GFS)
NASDAQ:GFS
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GlobalFoundries Inc
(NASDAQ:GFS)
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Rating:69Neutral
Price Target:
$48.00
▼(-1.90% Downside)
Action:ReiteratedDate:02/12/26
The score is driven primarily by solid financial footing (low leverage and strong cash generation) and a constructive technical trend. Earnings-call signals are supportive (margin expansion, design wins, acquisitions and buyback) but tempered by near-term revenue softness and investment-driven free-cash-flow pressure. Valuation is a clear drag due to the provided negative P/E and lack of a dividend yield.
Positive Factors
Strong cash generation and record free cash flow
Sustained positive operating cash flow and record adjusted free cash flow provide durable financial flexibility for a capital‑intense foundry. Robust FCF supports capex funding, M&A, and the $500M repurchase while reducing reliance on external financing over the next 2–6 months.
Negative Factors
Planned higher capex will compress free cash flow margin
Management's intentional step‑up in capex to expand silicon photonics, FDX, SiGe and advanced packaging will materially reduce near‑term free cash conversion. That durable investment cadence pressures distributable cash and leaves less flexibility for buybacks/dividends in the 2–6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and record free cash flow
Sustained positive operating cash flow and record adjusted free cash flow provide durable financial flexibility for a capital‑intense foundry. Robust FCF supports capex funding, M&A, and the $500M repurchase while reducing reliance on external financing over the next 2–6 months.
Read all positive factors
GlobalFoundries Inc (GFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.23B
Dividend YieldN/A
Average Volume (3M)3.84M
Price to Earnings (P/E)22.0
Beta (1Y)1.65
Revenue Growth0.25%
EPS Growth-106.22%
CountryUS
Employees13,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.55
Shares Outstanding556,417,240
10 Day Avg. Volume2,666,179
30 Day Avg. Volume3,837,545
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 Cap0.99
Enterprise Value/Revenue3.98
Enterprise Value/Gross Profit15.82
Enterprise Value/Ebitda12.55
Forecast
1Y Price Target
$50.68Price Target Upside3.58% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)1.84
Revenue Forecast (FY)$7.21B
GlobalFoundries Inc Business Overview & Revenue Model
Company Description
GLOBALFOUNDRIES Inc. operates as a semiconductor foundry worldwide. It manufactures integrated circuits, which enable various electronic devices that are pervasive. The company manufactures a range of semiconductor devices, including microprocesso...
How the Company Makes Money
GlobalFoundries primarily makes money by selling semiconductor manufacturing services to customers on a contract basis. Its core revenue stream is wafer fabrication: customers provide chip designs and GlobalFoundries manufactures those designs on ...
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 Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong margin expansion, record free cash flow, accelerating design-win momentum, strategic acquisitions (silicon photonics and processor IP) and a solid balance sheet enabling a $500M repurchase. Growth pockets were substantial — communications infrastructure & data center (+29% YoY), automotive (+17% YoY) and a doubled silicon photonics base — supporting a positive multi-year thesis. Near-term weaknesses include smart mobile and some IoT declines, a flat full-year revenue profile, an expected sequential Q1 decline, and an intentional increase in 2026 CapEx that will reduce free cash flow margin. On balance, the positive operational and financial momentum, coupled with strategic acquisitions and record cash generation, outweigh the short-term headwinds and investment-driven pressures.Positive Updates
Q4 Revenue and Shipments
Q4 revenue of $1.83B, up 8% sequentially and flat year-over-year; shipped ~619,300 300mm-equivalent wafers in the quarter (+3% sequential, +4% YoY).
Negative Updates
Smart Mobile Revenue Pressure
Smart mobile devices represented ~36% of Q4 revenue but declined ~13% sequentially and ~11% YoY in Q4; full-year smart mobile revenue down ~12% YoY, driven in part by GF-initiated one-time pricing adjustments with dual-sourced mobile customers.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue and Shipments
Q4 revenue of $1.83B, up 8% sequentially and flat year-over-year; shipped ~619,300 300mm-equivalent wafers in the quarter (+3% sequential, +4% YoY).
Read all positive updates
Company Guidance
GlobalFoundries guided Q1 2026 revenue of $1.625 billion, plus or minus $25 million, with non‑wafer revenue expected to be 10–12% of total (up from an 8–12% range in prior years); gross margin of ~27% ±100 bps; total operating expenses excluding share‑based compensation of $225 million ± $10 million (with a similar quarterly run rate expected in H1); and operating margin of 13.2% ±180 bps. At the midpoint, share‑based compensation is expected to be about $63 million (roughly $16 million in COGS), net interest and other income $2–10 million, income tax expense $17–35 million (full‑year effective tax rate expected in the high‑teens), and diluted EPS of $0.35 ± $0.05 based on ~560 million fully diluted shares. For full‑year 2026 GF expects non‑IFRS net CapEx of 15–20% of revenue, an adjusted free cash flow margin of approximately 10% of revenue, and noted that net CapEx may vary quarter‑to‑quarter depending on timing of spend and government grants.GlobalFoundries Inc Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.79B | 6.75B | 7.39B | 8.11B | 6.58B |
| Gross Profit | 1.71B | 1.65B | 2.10B | 2.24B | 1.01B |
| EBITDA | 2.23B | 1.50B | 2.64B | 3.25B | 1.54B |
| Net Income | 885.00M | -265.00M | 1.02B | 1.45B | -250.00M |
Balance Sheet | |||||
| Total Assets | 17.14B | 16.80B | 18.04B | 17.84B | 15.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.05B | 3.39B | 3.47B | 3.05B | 2.96B |
| Total Debt | 1.64B | 2.32B | 2.75B | 2.86B | 2.44B |
| Total Liabilities | 5.16B | 5.97B | 6.89B | 7.88B | 7.00B |
| Stockholders Equity | 11.93B | 10.78B | 11.10B | 9.91B | 7.97B |
Cash Flow | |||||
| Free Cash Flow | 1.01B | 1.10B | 321.00M | -435.00M | 1.07B |
| Operating Cash Flow | 1.73B | 1.72B | 2.13B | 2.62B | 2.84B |
| Investing Cash Flow | -1.27B | -1.13B | -1.88B | -4.06B | -1.45B |
| Financing Cash Flow | -845.00M | -785.00M | -212.00M | 842.00M | 650.00M |
GlobalFoundries Inc Technical Analysis
Positive
48.93
Price Trends
45.17
Positive
41.70
Positive
38.62
Positive
Market Momentum
0.59
Negative
61.89
Neutral
93.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFS, the sentiment is Positive. The current price of 48.93 is above the 20-day moving average (MA) of 44.45, above the 50-day MA of 45.17, and above the 200-day MA of 38.62, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 93.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $24.54B | 14.74 | 11.36% | 6.06% | 5.87% | -20.93% | |
69 Neutral | $27.23B | 21.96 | 7.68% | ― | 0.25% | -106.22% | |
68 Neutral | $14.33B | 26.10 | 8.73% | 0.81% | 0.13% | -16.17% | |
64 Neutral | $27.05B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $54.09B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $35.34B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
GFS
GlobalFoundries Inc
48.93
15.27
45.37%
ASX
ASE Technology Holding Co
24.84
16.83
210.19%
AMKR
Amkor
57.96
41.18
245.39%
ON
ON Semiconductor
68.65
33.03
92.73%
STM
STMicroelectronics
39.48
19.22
94.84%
UMC
United Micro
9.74
3.17
48.27%
GlobalFoundries Inc Corporate Events
GlobalFoundries Closes Mubadala Secondary Offering and $300 Million Share Buyback
Mar 13, 2026
On March 13, 2026, GlobalFoundries Inc. closed a previously announced underwritten secondary offering of 27,344,840 ordinary shares, all sold by major shareholder Mubadala Technology Investment Company. Of these, 20,000,000 shares were sold to the...
GlobalFoundries Prices Mubadala Secondary Share Offering, Launches $300 Million Buyback
Mar 12, 2026
On March 11, 2026, GlobalFoundries announced the pricing of a secondary public offering of 20 million ordinary shares at $42.00 per share, all sold by Mubadala Technology Investment Company, a subsidiary of its largest shareholder. The deal, which...
GlobalFoundries Launches Mubadala Secondary Offering and $300 Million Share Buyback
Mar 12, 2026
On March 11, 2026, GlobalFoundries announced the launch of a secondary public offering of 20,000,000 ordinary shares, all to be sold by Mubadala Technology Investment Company, a subsidiary of its largest shareholder Mubadala Investment Company PJS...
GlobalFoundries Adds Mubadala Legal Chief Samer Halawa to Board and Strategy Committee
Feb 4, 2026
On February 3, 2026, GlobalFoundries Inc.’s board of directors elected Samer Halawa, Chief Legal Officer of majority shareholder Mubadala Investment Company, as a new Class III director and member of the board’s Strategy Investment Co...
GlobalFoundries Adds Former Microchip CEO Ganesh Moorthy to Board
Jan 15, 2026
On January 15, 2026, GlobalFoundries announced that seasoned semiconductor executive Ganesh Moorthy, the former president and CEO of Microchip Technology, has been appointed to its board of directors with immediate effect. Moorthy’s four dec...
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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.