GlobalFoundries Upgraded to Positive with Strong Q2 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 58 minutes ago
0mins
Should l Buy GFS?
Source: seekingalpha
- Strong Earnings Beat: GlobalFoundries reported better-than-expected results for Q1 2026, leading to a 1.3% rise in premarket trading, reflecting market confidence in its future growth trajectory.
- Smartphone Revenue Recovery: Analysts noted that smartphone-related revenue marked a bottom in Q1 2026, which is expected to drive overall revenue growth, particularly with communication infrastructure revenue projected to grow at a 35% CAGR from 2025 to 2028.
- Technology Services Revenue Growth: Technology services revenue is anticipated to grow at a 15% CAGR from 2025 to 2028, primarily driven by contributions from MIPS and Synopsys IP, further enhancing the company's profitability.
- Improved Profitability Expectations: By 2028, GlobalFoundries is expected to achieve gross margins and operating margins of 32% and 25%, respectively, compared to reported margins of 29% and 17% in Q1 2026.
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Analyst Views on GFS
Wall Street analysts forecast GFS stock price to fall
11 Analyst Rating
2 Buy
7 Hold
2 Sell
Hold
Current: 74.040
Low
35.00
Averages
41.32
High
48.50
Current: 74.040
Low
35.00
Averages
41.32
High
48.50
About GFS
GlobalFoundries Inc. is a semiconductor manufacturer. The Company offers a range of mainstream wafer fabrication services and technologies. It manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. Its specialized foundry manufacturing processes include a library consisting of qualified circuit-building block designs (known as IP titles or IP blocks), and advanced transistor and device technology. The Company's differentiated technology platforms include radio frequency (RF) silicon-on-insulator (SOI), Fin Field-Effect Transistor (FinFET), FDX, Complementary Metal-Oxide Semiconductor (CMOS), Silicon Germanium (SiGe), Gallium Nitride (GaN), Bipolar-CMOS-DMOS (BCD), and Silicon Photonics (SiPh).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GlobalFoundries Upgraded to Positive with Strong Q2 Outlook
- Strong Earnings Beat: GlobalFoundries reported better-than-expected results for Q1 2026, leading to a 1.3% rise in premarket trading, reflecting market confidence in its future growth trajectory.
- Smartphone Revenue Recovery: Analysts noted that smartphone-related revenue marked a bottom in Q1 2026, which is expected to drive overall revenue growth, particularly with communication infrastructure revenue projected to grow at a 35% CAGR from 2025 to 2028.
- Technology Services Revenue Growth: Technology services revenue is anticipated to grow at a 15% CAGR from 2025 to 2028, primarily driven by contributions from MIPS and Synopsys IP, further enhancing the company's profitability.
- Improved Profitability Expectations: By 2028, GlobalFoundries is expected to achieve gross margins and operating margins of 32% and 25%, respectively, compared to reported margins of 29% and 17% in Q1 2026.
See More
Key Wall Street Rating Changes Overview
- LCI Industries Upgrade: Roth upgrades LCI Industries from Hold to Buy with a price target of $164, unchanged, following outsized Q1 EPS, indicating strong profitability that is expected to drive stock price upward.
- VF Corp Upgrade: BTIG raises VF Corp's rating from Neutral to Buy, citing more reasonable estimates reflecting positive outlook for Vans brand, which could enhance market confidence and shareholder returns.
- DaVita's Strong Performance: Deutsche Bank upgrades DaVita from Hold to Buy after reporting Q1 revenues of $3.415 billion, beating consensus by 2.2%, and EPS of $2.87, exceeding expectations by 22.1%, showcasing robust treatment growth and revenue per treatment.
- Monster Beverage Upgrade: Rothschild & Co Redburn upgrades Monster Beverage from Neutral to Buy, highlighting significant international growth potential as the company currently holds only 14% market share, suggesting substantial future market position improvement.
See More
GLOBALFOUNDRIES INC: NEEDHAM INCREASES TARGET PRICE FROM $55 TO $80
- Global Foundries Price Increase: Global Foundries has raised its target price from $55 to $80.
- Market Impact: This adjustment reflects a significant shift in the company's valuation and market expectations.
See More
GlobalFoundries Q1 Earnings Exceed Expectations
- Earnings Growth: GlobalFoundries reported a non-IFRS EPS of $0.40 for Q1, an 18% year-over-year increase that surpassed analyst expectations, indicating a strong enhancement in the company's profitability.
- Stable Revenue: The company achieved revenue of $1.63 billion in Q1, reflecting a 3% year-over-year growth that aligned with market estimates, demonstrating its ability to maintain stable income in a competitive semiconductor market.
- Optimistic Outlook: For Q2 2026, GlobalFoundries anticipates a non-IFRS EPS of $0.43 (plus or minus $0.05), exceeding the consensus estimate of $0.41, showcasing management's confidence in future profitability.
- Revenue Forecast Increase: The company expects net revenue of $1.76 billion (plus or minus $25 million) for Q2, higher than the consensus estimate of $1.74 billion, reflecting a positive outlook on market demand.
See More
GLOBALFOUNDRIES Q1 Earnings Beat Expectations
- Earnings Surprise: GLOBALFOUNDRIES reported a Q1 non-GAAP EPS of $0.40, beating expectations by $0.05, indicating strong performance in the semiconductor sector despite a modest 2.5% year-over-year revenue growth.
- Stable Revenue: The company achieved Q1 revenue of $1.63 billion, aligning with market expectations, which reflects its ability to maintain stable sales levels in the current economic climate, thereby boosting investor confidence in future growth.
- Q2 Guidance: For Q2, GLOBALFOUNDRIES projects net revenue around $1.76 billion with a gross margin of 27.4%, showcasing ongoing efforts in cost control and profitability, which may attract further investor interest.
- Market Consensus: Although Q1 revenue and EPS slightly fell short of market consensus, the company's positive outlook for the future could provide support for its stock price.
See More
Middle East Tensions Weigh on Stock Market Performance
- Market Decline: The S&P 500 index fell by 0.41%, the Dow Jones Industrial Average dropped by 1.13%, and the Nasdaq 100 index decreased by 0.21%, reflecting investor concerns over escalating tensions in the Middle East, which dampened market sentiment.
- Oil Price Surge: WTI crude oil prices surged over 4% following exchanges of fire between the US and Iran in the Strait of Hormuz, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a five-week high of 4.46%.
- Strong Economic Data: US March factory orders rose by 1.5% month-over-month, exceeding expectations of 0.6%, marking the largest increase in four months, indicating economic resilience that could provide support to the stock market.
- Earnings Optimism: As of Monday, 82% of the 322 S&P 500 companies that reported Q1 earnings exceeded estimates, with projected earnings growth of 12% year-over-year for Q1, although excluding the technology sector, the growth is only 3%, highlighting performance disparities across sectors.
See More
GlobalFoundries Upgraded to Positive with Strong Q2 Outlook
- Strong Earnings Beat: GlobalFoundries reported better-than-expected results for Q1 2026, leading to a 1.3% rise in premarket trading, reflecting market confidence in its future growth trajectory.
- Smartphone Revenue Recovery: Analysts noted that smartphone-related revenue marked a bottom in Q1 2026, which is expected to drive overall revenue growth, particularly with communication infrastructure revenue projected to grow at a 35% CAGR from 2025 to 2028.
- Technology Services Revenue Growth: Technology services revenue is anticipated to grow at a 15% CAGR from 2025 to 2028, primarily driven by contributions from MIPS and Synopsys IP, further enhancing the company's profitability.
- Improved Profitability Expectations: By 2028, GlobalFoundries is expected to achieve gross margins and operating margins of 32% and 25%, respectively, compared to reported margins of 29% and 17% in Q1 2026.
See More
Key Wall Street Rating Changes Overview
- LCI Industries Upgrade: Roth upgrades LCI Industries from Hold to Buy with a price target of $164, unchanged, following outsized Q1 EPS, indicating strong profitability that is expected to drive stock price upward.
- VF Corp Upgrade: BTIG raises VF Corp's rating from Neutral to Buy, citing more reasonable estimates reflecting positive outlook for Vans brand, which could enhance market confidence and shareholder returns.
- DaVita's Strong Performance: Deutsche Bank upgrades DaVita from Hold to Buy after reporting Q1 revenues of $3.415 billion, beating consensus by 2.2%, and EPS of $2.87, exceeding expectations by 22.1%, showcasing robust treatment growth and revenue per treatment.
- Monster Beverage Upgrade: Rothschild & Co Redburn upgrades Monster Beverage from Neutral to Buy, highlighting significant international growth potential as the company currently holds only 14% market share, suggesting substantial future market position improvement.
See More
GLOBALFOUNDRIES INC: NEEDHAM INCREASES TARGET PRICE FROM $55 TO $80
- Global Foundries Price Increase: Global Foundries has raised its target price from $55 to $80.
- Market Impact: This adjustment reflects a significant shift in the company's valuation and market expectations.
See More
GlobalFoundries Q1 Earnings Exceed Expectations
- Earnings Growth: GlobalFoundries reported a non-IFRS EPS of $0.40 for Q1, an 18% year-over-year increase that surpassed analyst expectations, indicating a strong enhancement in the company's profitability.
- Stable Revenue: The company achieved revenue of $1.63 billion in Q1, reflecting a 3% year-over-year growth that aligned with market estimates, demonstrating its ability to maintain stable income in a competitive semiconductor market.
- Optimistic Outlook: For Q2 2026, GlobalFoundries anticipates a non-IFRS EPS of $0.43 (plus or minus $0.05), exceeding the consensus estimate of $0.41, showcasing management's confidence in future profitability.
- Revenue Forecast Increase: The company expects net revenue of $1.76 billion (plus or minus $25 million) for Q2, higher than the consensus estimate of $1.74 billion, reflecting a positive outlook on market demand.
See More
GLOBALFOUNDRIES Q1 Earnings Beat Expectations
- Earnings Surprise: GLOBALFOUNDRIES reported a Q1 non-GAAP EPS of $0.40, beating expectations by $0.05, indicating strong performance in the semiconductor sector despite a modest 2.5% year-over-year revenue growth.
- Stable Revenue: The company achieved Q1 revenue of $1.63 billion, aligning with market expectations, which reflects its ability to maintain stable sales levels in the current economic climate, thereby boosting investor confidence in future growth.
- Q2 Guidance: For Q2, GLOBALFOUNDRIES projects net revenue around $1.76 billion with a gross margin of 27.4%, showcasing ongoing efforts in cost control and profitability, which may attract further investor interest.
- Market Consensus: Although Q1 revenue and EPS slightly fell short of market consensus, the company's positive outlook for the future could provide support for its stock price.
See More
Middle East Tensions Weigh on Stock Market Performance
- Market Decline: The S&P 500 index fell by 0.41%, the Dow Jones Industrial Average dropped by 1.13%, and the Nasdaq 100 index decreased by 0.21%, reflecting investor concerns over escalating tensions in the Middle East, which dampened market sentiment.
- Oil Price Surge: WTI crude oil prices surged over 4% following exchanges of fire between the US and Iran in the Strait of Hormuz, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a five-week high of 4.46%.
- Strong Economic Data: US March factory orders rose by 1.5% month-over-month, exceeding expectations of 0.6%, marking the largest increase in four months, indicating economic resilience that could provide support to the stock market.
- Earnings Optimism: As of Monday, 82% of the 322 S&P 500 companies that reported Q1 earnings exceeded estimates, with projected earnings growth of 12% year-over-year for Q1, although excluding the technology sector, the growth is only 3%, highlighting performance disparities across sectors.
See More
