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

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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