GLOBALFOUNDRIES (GFS) opened Q1 2026 earnings season with Q4 2025 revenue of US$1.8 billion, Basic EPS of US$0.36 and net income of US$199 million, while trailing twelve month EPS sat at US$1.59 on revenue of US$6.8 billion and net income of US$885 million. Over recent quarters the company has seen revenue range between US$1.6 billion and US$1.8 billion with Basic EPS between US$0.32 and US$0.45, alongside a prior period of losses that is now reflected in the turnaround in the trailing figures. With the latest numbers adding to that shift into profitability, margins and earnings quality are now central for investors assessing how durable this phase of the story might be.

See our full analysis for GLOBALFOUNDRIES.

With the headline results established, the next step is to line these figures up against the prevailing narratives to see which stories about GLOBALFOUNDRIES hold up under the numbers and which ones start to look out of date.

TTM profit of US$885 million reframes the story

• On a trailing twelve month basis GLOBALFOUNDRIES earned US$885 million of net income on US$6.8b of revenue, compared with a loss of US$265 million on US$6.8b of revenue one year earlier.
• What bullish investors highlight is that this move into profitability lines up with longer term earnings growth of about 24.5% per year and forecasts of roughly 27% annual earnings growth. However:
  • TTM EPS of US$1.59 follows a period when TTM EPS was negative, so the earnings line now backs up the view that the business has shifted from repair mode into generating consistent profit.
  • Revenue over the last six reported quarters has moved in a relatively tight band between US$1.6b and US$1.8b, which fits the bullish idea of “revenue stability” but also means a lot of the earnings story is coming from margins rather than fast top line expansion.

On top of those headline profit figures, bulls argue that stronger design wins and higher value chip mixes can keep margins doing more of the heavy lifting than raw revenue growth, which is exactly what recent TTM numbers seem to be reflecting right now. 🐂 GLOBALFOUNDRIES Bull Case

Revenue growth forecasts trail market at 10.2%

• The data show revenue is forecast to grow about 10.2% per year, compared with an 11.2% annual revenue growth rate quoted for the broader US market, while earnings are forecast to grow much faster at about 27.05% per year.
• Bears focus on this gap, arguing that slower revenue growth and heavier exposure to mature nodes could cap long run potential even if earnings grow faster for a while:
  • With revenue projected to grow slightly slower than the broader market, bearish investors point back to risks such as customer concentration and competition from other foundries if high growth segments tilt more toward leading edge technologies.
  • At the same time, the combination of 10.2% revenue growth and 27.05% earnings growth in the forecasts implies a growing reliance on margin gains, which critics see as more exposed if pricing pressure or higher compliance costs show up.

Skeptics argue that if revenue trails market growth while margin gains carry most of the load, any bump in pricing or costs could matter more than bulls expect. 🐻 GLOBALFOUNDRIES Bear Case

P/E at 46.6x with a DCF gap

• The trailing P/E of 46.6x is slightly below the US Semiconductor industry average of 48.1x and well below the peer average of 74.4x, while the current share price of US$74.04 sits above a DCF fair value of roughly US$33.86 and an analyst price target reference of US$63.40.
• Consensus style narratives point out a mix of support and pushback here, with profitability and multi year earnings growth on one side and valuation tension on the other:
  • The P/E sitting under both the industry and peer averages lines up with the idea that investors are not paying a premium multiple despite the shift to a US$885 million TTM profit and forecast earnings growth of about 27% per year.
  • However, the gap between the US$74.04 share price, the US$33.86 DCF fair value, and the US$63.40 analyst target reference suggests some investors may see pricing as rich relative to the cash flow estimate even if headline multiples look reasonable compared with peers.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GLOBALFOUNDRIES on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After weighing both the bullish and bearish angles, the real question is how you see the balance of risk and reward today. Take a closer look at the trade offs and move early to form your own view with the 3 key rewards

See What Else Is Out There

GLOBALFOUNDRIES combines a relatively high 46.6x P/E, revenue growth forecasts that trail the broader US market, and a share price above a quoted DCF fair value.

If that mix of rich pricing and slower revenue outlook makes you cautious, it is worth checking out 52 high quality undervalued stocks that may offer stronger value for every dollar you put to work.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.