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GlobalFoundries Inc
(NASDAQ:GFS)
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Rating:67Neutral
Price Target:
$56.00
▲(5.30% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects strengthening fundamentals and an upbeat, guidance-supported outlook (profitability recovery, strong liquidity, and accelerating higher-value data center/communications momentum), partially offset by a weak technical trend and a demanding valuation (high P/E with a low dividend yield).
Positive Factors
Strong cash generation & solid balance sheet
Robust trailing‑twelve‑month operating cash flow and positive free cash flow, coupled with ~$3.3B liquidity and low net debt, provide durable financial flexibility to fund CapEx, support dividends/repurchases, and weather semiconductor cyclicality without near‑term refinancing stress.
Negative Factors
High near‑term CapEx intensity
Elevated capital spending to expand capacity and scale new technologies depresses near‑term free cash flow and raises the break‑even hurdle for returns. Long‑term upside depends on timely, cost‑efficient capacity ramps; execution delays would prolong low FCF and strain capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & solid balance sheet
Robust trailing‑twelve‑month operating cash flow and positive free cash flow, coupled with ~$3.3B liquidity and low net debt, provide durable financial flexibility to fund CapEx, support dividends/repurchases, and weather semiconductor cyclicality without near‑term refinancing stress.
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
$27.43B
Dividend Yield0.23%
Average Volume (3M)3.01M
Price to Earnings (P/E)35.5
Beta (1Y)1.76
Revenue Growth0.80%
EPS GrowthN/A
CountryUS
Employees14,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.41
Shares Outstanding548,700,800
10 Day Avg. Volume3,662,054
30 Day Avg. Volume3,014,966
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.07Price Target Upside50.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.92
Revenue Forecast (FY)$7.29B
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 makes money primarily by manufacturing semiconductor wafers for customers under contract (foundry services). Revenue is largely generated through: (1) Wafer fabrication sales: Customers pay GFS to produce chips on specified process...
GlobalFoundries Inc Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and strategic momentum: revenue, shipments, and margins beat guidance with notable breakout growth in communications infrastructure & data center (62% YoY) driven by silicon photonics and SiGe, plus strategic moves into quantum, IVR/power and IP/software that expand long‑term addressable markets. Financial position is healthy with $3.3B in liquidity, first dividend initiation and disciplined capital allocation. Near‑term headwinds include smart mobile decline (low‑teens expected for 2026), a sequentially weak automotive quarter due to shipment timing, elevated CapEx and R&D as the company invests to scale capacity and integrate acquisitions, and some dependency on expected government grants. Overall, the positives — strong margin expansion, robust design‑win momentum, accelerating data‑center demand, and strategic acquisitions — materially outweigh the headwinds, supporting an overall upbeat outlook.Positive Updates
Revenue Growth and Shipment Volume
Second quarter revenue $1.786B, up 9% sequentially and 6% year-over-year; shipped ~625,000 300-mm equivalent wafers, up 8% sequentially and 8% year-over-year.
Negative Updates
Smart Mobile Revenue Pressure
Smart mobile devices comprised ~36% of revenue; Q2 revenue rose 15% sequentially but fell 6% YoY; company expects smart mobile devices to decline by a low‑teens percent year‑over‑year in 2026 due to memory pricing and shortages.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Shipment Volume
Second quarter revenue $1.786B, up 9% sequentially and 6% year-over-year; shipped ~625,000 300-mm equivalent wafers, up 8% sequentially and 8% year-over-year.
Read all positive updates
Company Guidance
For the third quarter GF guided revenue of $1.885 billion ± $25 million, gross margin of ~30.5% ±100 bps (midpoint implying ~450 bps YoY expansion), non‑IFRS operating expense (ex‑share‑based comp) of $260 million ± $10 million, operating margin ~16.7% ±170 bps, share‑based comp of ≈$76 million (≈$18 million in COGS), net interest & other income $3–11 million, income tax expense $28–52 million, and diluted EPS of $0.51 ± $0.05 on ~556 million diluted shares. For full‑year 2026 GF reiterated an adjusted free cash flow margin target of ~10%, expects communications infrastructure & data center revenue to grow 50–60% Y/Y (up from prior high‑30s outlook), technology services to be at the high end of a 10–12% share of total revenue with ~$100–$120 million contribution from the MIPS + Synopsys ARC deals, a mid‑teens effective tax rate, and noted CapEx is expected toward the higher end of their prior 15–20% of revenue range as R&D ramps. Key balance‑sheet and cash metrics included Q2 operating cash flow of $405 million, Q2 net CapEx of $408 million (~23% of Q2 revenue), cash and marketable securities ≈$3.3 billion, total debt $1.1 billion with a $1.0 billion undrawn revolver, a $0.12 quarterly dividend (paid and approved for Oct. 9), and ≈$100 million remaining on the share‑repurchase authorization.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
Negative
53.18
Price Trends
70.49
Negative
63.73
Negative
51.72
Negative
Market Momentum
-6.01
Negative
32.29
Neutral
34.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFS, the sentiment is Negative. The current price of 53.18 is below the 20-day moving average (MA) of 56.45, below the 50-day MA of 70.49, and above the 200-day MA of 51.72, indicating a bearish trend. The MACD of -6.01 indicates Negative momentum. The RSI at 32.29 is Neutral, neither overbought nor oversold. The STOCH value of 34.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $47.07B | 18.09 | 20.98% | 2.12% | 9.07% | 116.20% | |
67 Neutral | $27.43B | 35.45 | 6.66% | 0.22% | 0.80% | ― | |
67 Neutral | $31.76B | 57.88 | 7.45% | ― | -9.04% | -4.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $12.39B | 22.26 | 12.37% | 0.51% | 17.93% | 82.27% | |
56 Neutral | $47.01B | 99.45 | 2.66% | 0.70% | 10.06% | -27.68% | |
53 Neutral | $75.50B | 39.90 | 14.45% | 1.13% | 18.30% | 82.12% |
* Technology Sector Average
GFS
GlobalFoundries Inc
49.46
17.23
53.45%
ASX
ASE Technology Holding Co
36.78
26.94
273.93%
AMKR
Amkor
53.86
31.19
137.53%
ON
ON Semiconductor
76.91
29.32
61.61%
STM
STMicroelectronics
52.77
28.16
114.44%
UMC
United Micro
19.29
12.71
193.12%
GlobalFoundries Inc Corporate Events
GlobalFoundries Posts Strong Q2 2026 Results and Accelerates AI and Quantum Chip Strategy
Aug 5, 2026
GlobalFoundries reported preliminary second-quarter 2026 results on August 5, posting revenue of $1.786 billion, gross margin of 28.3% and net income of $167 million, with non-IFRS metrics showing stronger profitability and EBITDA of $587 million....
GlobalFoundries Files Mid‑Year 2026 Unaudited Results and Management Analysis
Aug 5, 2026
GlobalFoundries Inc., a leading semiconductor foundry headquartered in Malta, N.Y., reported its unaudited interim condensed consolidated financial position as of June 30, 2026, alongside comparative figures for December 31, 2025. The filing detai...
GlobalFoundries Streamlines Board After Shareholder-Backed AGM Decisions
Jul 29, 2026
At its Annual General Meeting of Shareholders held on July 28, 2026, GlobalFoundries Inc. saw investors strongly back board continuity and oversight measures. Shareholders approved the election of David Kerko, Jack Lazar and Carlos Obeid as Class ...
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.