GlobalFoundries (NASDAQ:GFS) Trading 9% Higher on Better-Than-Expected Earnings

GlobalFoundries Inc. (NASDAQ:GFS)’s share price traded up 9% on Wednesday following a stronger than expected earnings report. The stock traded as high as $47.19 and last traded at $45.6910. 1,580,789 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 3,890,551 shares. The stock had previously closed at $41.90.

The company reported $0.55 earnings per share for the quarter, topping the consensus estimate of $0.47 by $0.08. GlobalFoundries had a negative net margin of 0.65% and a positive return on equity of 6.64%. The firm had revenue of $1.83 billion for the quarter, compared to the consensus estimate of $1.80 billion. During the same period in the prior year, the firm earned $0.46 EPS. The firm’s revenue for the quarter was up .0% on a year-over-year basis. GlobalFoundries has set its Q1 2026 guidance at 0.300-0.400 EPS.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on GFS shares. Wedbush cut GlobalFoundries from an “outperform” rating to a “neutral” rating and dropped their target price for the stock from $42.00 to $40.00 in a research report on Wednesday, December 31st. Jefferies Financial Group reissued a “hold” rating and set a $38.00 price objective on shares of GlobalFoundries in a research note on Monday, October 27th. BNP Paribas Exane assumed coverage on shares of GlobalFoundries in a research report on Friday, October 24th. They issued an “outperform” rating and a $45.00 price objective for the company. Citigroup boosted their price target on GlobalFoundries from $35.00 to $42.00 and gave the stock a “neutral” rating in a research report on Thursday, January 15th. Finally, Evercore raised their price objective on GlobalFoundries from $43.00 to $45.00 and gave the company an “outperform” rating in a research note on Thursday, November 13th. Four research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $42.23.

Institutional Trading of GlobalFoundries

Large investors have recently bought and sold shares of the company. Royal Bank of Canada grew its holdings in GlobalFoundries by 4.4% in the first quarter. Royal Bank of Canada now owns 15,583 shares of the company’s stock valued at $575,000 after purchasing an additional 660 shares during the period. AQR Capital Management LLC boosted its holdings in shares of GlobalFoundries by 77.6% in the 1st quarter. AQR Capital Management LLC now owns 102,048 shares of the company’s stock valued at $3,679,000 after purchasing an additional 44,599 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of GlobalFoundries by 7,120.1% during the 1st quarter. Jones Financial Companies Lllp now owns 12,202 shares of the company’s stock valued at $450,000 after buying an additional 12,033 shares during the period. IFP Advisors Inc increased its holdings in shares of GlobalFoundries by 824.7% during the 2nd quarter. IFP Advisors Inc now owns 897 shares of the company’s stock worth $38,000 after buying an additional 800 shares during the last quarter. Finally, Aberdeen Group plc raised its position in shares of GlobalFoundries by 6.1% in the 2nd quarter. Aberdeen Group plc now owns 72,735 shares of the company’s stock worth $2,778,000 after buying an additional 4,151 shares during the period.

GlobalFoundries Stock Up 10.9%

The firm has a 50-day moving average of $39.84 and a two-hundred day moving average of $36.26. The company has a current ratio of 3.03, a quick ratio of 2.24 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $25.70 billion, a PE ratio of -516.89, a price-to-earnings-growth ratio of 1.78 and a beta of 1.50.

About GlobalFoundries

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.