Overview
Semiconductor manufacturer reported preliminary Q4 revenue up, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company announced $500 mln share repurchase authorization
Outlook
Globalfoundries expects Q1 2026 revenue between $1.6 bln and $1.65 bln
Company anticipates Q1 2026 non-IFRS gross margin of 27% ± 100bps
Globalfoundries projects Q1 2026 non-IFRS diluted EPS of $0.35 ± $0.05
Result Drivers
COST MANAGEMENT - GF attributed the nearly 400 basis point increase in Non-IFRS gross margin to disciplined cost management and strong execution
ACQUISITIONS - Recent acquisitions have expanded GF's capabilities into diversified technology solutions, aligning with AI Data Center and on-shoring trends
STRATEGIC PARTNERSHIP - Partnership with Navitas aims to enhance U.S.-based gallium nitride technology for high-power markets
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $1.83 bln | $1.80 bln (16 Analysts) |
Q4 Adjusted EPS | Beat | $0.55 | $0.47 (15 Analysts) |
Q4 EPS | $0.36 | ||
Q4 Adjusted Net Income | Beat | $310 mln | $264.93 mln (13 Analysts) |
Q4 Net Income | $200 mln | ||
Q4 Adjusted EBITDA | $641 mln | ||
Q4 Gross Margin | 27.80% | ||
Q4 Adjusted Gross Margin | 29.00% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for GlobalFoundries Inc is $40.00, about 4.5% below its February 10 closing price of $41.90
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nGNX2sxQt3
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)