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GLOBALFOUNDRIES Inc.
$26.7B
Market Cap
22.0
P/E
1.19
PEG
7.6%
ROCE
7.8%
ROE
0.13
D/E
11.7%
OPM
-48.8%
% from 52W High
66
α RS
🔍 GFS is showing a high-conviction setup because it matches 3 of 37 tracked screener presets, RS Rating is 66, and an ECS of 65.6 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 3/37 · RS Rating 66 · ECS 65.6
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About

GLOBALFOUNDRIES Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies in the United States, Europe, the Middle East, Africa, and internationally.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.786B
+6% YoY
Non-IFRS Operating Income
$298M
+16% YoY
Non-IFRS Operating Margin
16.7%
+1.4pp YoY
Non-IFRS Net Income
$256M
+9% YoY
What Went Right
  • Q2 revenue and non-IFRS gross margin exceeded high end; gross margin came in at 29.9%, up 470bps YoY.
  • Comms infrastructure and data center revenue grew 62% YoY in Q2 and FY26 growth outlook was raised to 50-60%; silicon photonics revenue expected to more than double in 2026.
  • Seven optical networking design wins won in Q2; also secured MediaTek BCD PMIC, Bosch FDX ADAS radar, Lockheed Martin chiplets, and paid first-ever dividend.
What to Watch
  • Smart mobile devices revenue expected down low-teens in 2026 due to memory pricing and shortages.
  • Q2 adjusted free cash flow was -$3M despite $405M operating cash flow, with CapEx at roughly 23% of revenue.
  • Operating expenses and R&D are set to rise after MIPS, ARC, and Photeon/IVR acquisitions; pricing increases only hit revenue from 2027.
  • Automotive revenue fell 10% YoY in Q2 on customer-led shipment timing, with recovery expected in H2 2026.
Management Guidance
  • Q3 2026 revenue guidance: $1.885B +/- $25M.
  • Q3 2026 non-IFRS gross margin ~30.5% +/- 100bps; operating margin 16.7% +/- 170bps; diluted EPS $0.51 +/- $0.05.
  • FY2026: C-ID revenue growth 50%-60%; technology services revenue $100-120M; adjusted FCF margin ~10%; effective tax rate mid-teens; pricing increases reflected in revenue from 2027.
Investor Lens
The AI data-center investment case is clearly stronger after this call: C-ID grew 62% YoY, FY26 guidance was raised to 50-60%, and silicon photonics is expected to more than double in 2026. Margins are inflecting ahead of plan - full-year gross margin now expected around 30% versus the original exit-rate target - and pricing increases should add a 2027 tailwind. The offset is mobile weakness, negative adjusted free cash flow and rising R&D spend, so disciplined execution on capacity ramp and premium mix is now the key driver.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 revenue $1.786B beat; non-IFRS GM 29.9%, EPS $0.46.
Revenue
Q2 revenue was $1.786B, up 9% sequentially and 6% YoY. End-market mix: smart mobile devices 36%, automotive 19%, home and industrial IoT 19%, and comms infrastructure/data center 16% - with C-ID surging 62% YoY.
Profitability
Non-IFRS net income was $256M, up 9% YoY, and non-IFRS diluted EPS was $0.46, up 10% YoY and at the high end of guidance.
Margins
Non-IFRS gross margin was 29.9%, up 470bps YoY; non-IFRS operating margin was 16.7%, up 140bps YoY. Margin expansion was driven by mix, technology services growth, structural cost improvements and higher utilization.
Balance Sheet
Cash, equivalents and marketable securities were $3.3B; total debt was $1.1B and the $1B revolver was undrawn. Q2 operating cash flow was $405M and adjusted free cash flow was -$3M; first dividend of $0.12 per share was paid on July 14.
Key Risks
Management flagged mobile weakness from memory shortages, negative free cash flow during heavy capacity investment, rising R&D/OpEx from recent acquisitions, and Q2 automotive softness on customer shipment timing. Q&A also highlighted capacity ramp execution in optical and SiGe, with SiGe oversubscribed through 2027.
Outlook
Q3 2026 revenue is guided to $1.885B +/- $25M with non-IFRS GM ~30.5%, operating margin ~16.7% and EPS of $0.51 +/- $0.05. Full-year C-ID growth was raised to 50-60%, technology services revenue is expected to reach $100-120M, and price increases begin contributing in 2027.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Q2 2026 saw strong revenue and margin growth, led by surging demand in data center and communications infrastructure, with silicon photonics and SiGe as key drivers. Strategic acquisitions, government grants, and robust design win momentum support a positive outlook for continued growth and profitability.
Q1 2026 Q1 2026 2026-05-05
Q1 2026 saw record gross margin and strong profitability, with double-digit growth in automotive and data center segments. Outlook for 2026 is robust, driven by silicon photonics, SiGe, and technology services, with continued margin expansion and disciplined capital allocation.
Q4 2025 Q4 2025 2026-02-11
Q4 and full-year 2025 results exceeded guidance, with strong growth in communications, data center, and automotive segments, and significant margin expansion. Strategic acquisitions and investments are accelerating technology roadmaps, while a $500 million share repurchase was announced.
Q3 2025 Q3 2025 2025-11-12
Q3 2025 results hit the high end of guidance, with strong growth in automotive and data center markets, margin expansion, and robust cash flow. Investments in U.S. and European capacity, new design wins, and a focus on differentiated technologies position the company for long-term growth.
Q2 2025 Q2 2025 2025-08-05
Q2 2025 results exceeded guidance with strong growth in automotive and data center, while mobile and IoT faced headwinds from trade and inventory dynamics. Guidance points to continued margin expansion, robust free cash flow, and strategic moves in China and AI IP.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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