GlobalFoundries Q3 revenue slightly beats, adjusted profit exceeds estimates
Overview
US semiconductor foundry's preliminary Q3 revenue rose 13% yr/yr, slightly beating analyst expectations
Adjusted EPS and net income for preliminary Q3 beat consensus
GAAP net loss driven by $441 mln non-cash charge for USG share issuance
Outlook
Globalfoundries expects Q4 2026 revenue of $2.0 bln ± $25 mln
Company sees Q4 2026 non-IFRS gross margin at 31.5% ± 100bps
Globalfoundries forecasts Q4 2026 non-IFRS diluted EPS of $0.59 ± $0.05
Result Drivers
AI APPLICATIONS - Co said record non-IFRS gross margin was driven by a richer mix of business across high-value, high-growth AI applications
GROWTH MARKETS - Co cited strong momentum in key growth markets, led by record yr/yr revenue growth in communications infrastructure and data center, as well as strong growth in Automotive and Home and Industrial IoT
STRATEGIC DIVERSIFICATION - Co said results reflect continued strategic diversification and strength of differentiated technologies, supported by recent customer and government partnerships
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $1.90 bln | $1.89 bln (16 Analysts) |
Q3 Adjusted EPS | Beat | $0.53 | $0.50 (16 Analysts) |
Q3 Loss Per Share | $0.49 | ||
Q3 Adjusted Net Income | Beat | $298 mln | $285.11 mln (13 Analysts) |
Q3 Net Loss | $270 mln | ||
Q3 Adjusted EBITDA | $647 mln | ||
Q3 Gross Margin | 30.10% | ||
Q3 Adjusted Gross Margin | 31.40% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 9 "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 $72.00, about 67.9% above its November 3 closing price of $42.89
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago
Reuters Recommended Reads
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Nov 3 - Astera Labs Q3 revenue jumps 154% on Scorpio switch ramp, design wins
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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.)