Start here if you're new
what it is
GlobalFoundries makes chips for other companies, mostly the less flashy ones that still keep cars, phones, and networks running.
how it gets paid
Last year Globalfoundries made $6.8B in revenue. smart mobile devices was the main engine at $2.04B, or 30% of sales.
why it's growing
Revenue grew 0.6% last year. EPS rose 38% vs. prior year to $0.44 even as revenue fell 3%.
what just happened
Latest quarter revenue was $1.7B and EPS was $0.44, with profit holding up better than sales.
At a glance
B+ balance sheet — decent shape, but not bulletproof
27.5x trailing p/e — priced about right
11.5% return on capital — nothing to write home about
xvary composite: 52/100 — below average
$2.30 fy2027 eps est
What they do
GlobalFoundries makes chips for other companies, mostly the less flashy ones that still keep cars, phones, and networks running.
Pure-play foundry → a company that only makes chips for other brands → so what: customers get a neutral factory, not a rival. That matters because GlobalFoundries says it is the only major foundry with a global footprint outside China or Taiwan, and long-term debt is just $1.1B, or 4% of capital. When supply chains break, you pay for certainty.
How they make money
$6.8B
annual revenue · their business grew +0.6% last year
smart mobile devices
$2.04B
3.0%
automotive
$1.50B
+8.0%
communications infrastructure & datacenter
$1.36B
+2.0%
home & industrial iot
$1.22B
+1.0%
aerospace, defense & other
$0.68B
flat
The products that matter
connectivity chip manufacturing
Communications
$0.7B · 38% of Q4 revenue
This was the largest business in the quarter at roughly $0.7B, and the 12% growth rate is why the Q4 print looked better than the stock's recent reputation.
largest segment
auto and industrial chips
Automotive & Industrial
$0.6B · 33% of revenue
This segment delivered about $0.6B in Q4 revenue and grew 8%. If you own GFS for resilience, this is one of the places you're looking.
steady demand
specialty process platform
FD-SOI platform
24.8% gross margin
The pitch here is not scale. It's staying out of the bleeding-edge node war while still keeping 24.8 cents of every revenue dollar after manufacturing costs.
economics matter
Key numbers
27.5x
trailing p/e
P/E → stock price divided by earnings → so what: you are paying a premium multiple today for a recovery that still needs to show up in the income statement.
$11B
2029 revenue est
Long-range revenue target → management's sales goal a few years out → so what: the bull case needs sales to rise $4.2B from today's $6.8B.
$1.1B
long-term debt
Long-term debt → money owed over many years → so what: debt is only 4% of capital, which gives the company room if chip demand wobbles.
24.8%
gross margin
Gross margin → what is left after making the chips → so what: nearly one quarter of each sales dollar remains before overhead, which matters in a cyclical business.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $1.1B (4% of capital)
- net profit margin 20.0% — keeps 20 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for GFS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue was $1.7B and EPS was $0.44, with profit holding up better than sales.
EDGAR shows quarterly revenue down 3% vs. prior year to $1.7B, while EPS rose 38% to $0.44. That is the weird part: sales softened, but the earnings line improved.
$1.7B
revenue
$0.44
eps
24.8%
gross margin
the number that mattered
EPS rose 38% vs. prior year to $0.44 even as revenue fell 3%, which says cost control is doing heavy lifting while demand recovers.
-
globalfoundries’ earnings prospects are gradually improving.we look for continued progress in coming quarters, but various customer end markets will likely remain mixed.
-
a new manufacturing partnership and two acquisitions last year (see below) offer promise.
-
the stock has been an industry laggard during the multi-year semiconductor run, but has showed unusual signs of life this year (up 38% year to date).
-
an expanded arrangement with renesas was inked last month.as part of the multibillion partnership, the japanese microcontroller company will utilize gfs’ technology platforms in its global manufacturing. the deal will strengthen supply chains and bolster gfs’ leading automotive business, which continues to see design wins amongst its customer base. however, revenue from this area may decelerate, as demand for componentry in automatic driving vehicles cools.
-
the datacenter and tech market are emerging as a new source of growth, too.the fourth-quarter purchases of singapore-based advanced micro foundry, a silicon photonics company, and infinilink, an egyptian optical data connectivity company, should complement this area over time. though small, silicon photonics revenues doubled to $200 million last year and will probably double again in 2026, thanks to fast growing datacenter connectivity requirements.
source: company filings, 2026
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What could go wrong
the #1 risk is specialty foundry demand softening faster than management expects in q1 2026.
med
Q1 guide reset becomes a longer reset
Management guided Q1 revenue to $1.6–$1.7B against a $1.8B consensus and EPS to $0.30–$0.40 against $0.38. If that weakness bleeds into Q2, the Q4 beat stops mattering.
Near-term exposure: up to $200M of quarterly revenue and roughly $0.08 of EPS expectations versus the higher end of what the market wanted.
med
Geopolitical and manufacturing footprint risk
The manufacturing network spans the U.S., Europe, and Asia. Source data flags a Nov. 2024 audit suggesting tighter trade restrictions could disrupt 15–20% of production capacity.
This is not an abstract macro risk. If restrictions tighten, capacity and customer deliveries could both get hit.
med
Secondary offering muddies the per-share story
A March 2026 secondary sold 27.3M shares with no proceeds going to the company, while GFS repurchased 7.34M shares concurrently. That's not a clean capital-return story. It's a crosscurrent.
The buyback offsets some of the supply, but not all of it. If demand weakens and share supply rises at the same time, the stock can feel heavier than the business alone would suggest.
The near-term problem is measurable: the current guide alone puts up to $200M of quarterly revenue at risk versus consensus, and the other two risks make it harder for valuation to expand while estimates are moving down.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
Expected May 5–12, 2026. This is the quarter that tells you whether the guide cut was a dip or the start of a longer reset.
margin
Gross margin around 24.8%
If specialty foundry demand is holding up, margin should not crack much below the current 24.8% level.
segment mix
Whether communications and auto keep carrying the quarter
Communications grew 12% and automotive & industrial grew 8%, while data center fell 3%. You want to see that gap narrow, not widen.
capital markets
Post-secondary share absorption
March's 27.3M-share secondary and the 7.34M-share repurchase create technical noise. Watch whether that overhang clears quickly or lingers.
Analyst rankings
street target midpoint
$42
That sits about 11% below the current $47.38 price. In human-speak, analysts see a decent business but not an obvious bargain from here.
balance sheet view
B+
Healthy enough to absorb a softer quarter. Not strong enough to make the softer quarter irrelevant.
trading stability
20 / 100
This stock does not trade like a safe utility. When estimates move, you feel it.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 123 buyers vs. 100 sellers in 4q2025. total institutional holdings: 0.6B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$21
$63
$47
current price
$42
target midpoint · 11% from current · 3-5yr high: $90 (+90% · 16% ann'l return)
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