GET DAILY SIGNALSGlobalFoundries (GFS) Delivers +13% Revenue Growth in Q3 2026
Key Takeaways
- Revenue reached $1.899 billion, up 13% year over year and 6% sequentially, landing at the high end of guidance.
- Non-IFRS diluted earnings per share (EPS) came in at $0.53, above the $0.51 consensus estimate.
- The company posted a record non-IFRS gross margin of 31.4%, up 540 basis points year over year.
- Reported IFRS results swung to a net loss of $270 million, driven largely by a $441 million non-cash charge from shares issued to the U.S. government.
- Fourth-quarter guidance calls for $2.0 billion in revenue and non-IFRS EPS of $0.59 at the midpoint.
- Despite the earnings beat, shares fell roughly 8% as investors weighed higher capital spending and share dilution.
- For more on this ticker's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated GFS pages.
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Earnings Context and Why It Matters
GlobalFoundries (NASDAQ: GFS) stands as one of the world’s leading semiconductor foundries, producing chips for customers in mobile, automotive, data center, and industrial markets. Its third-quarter 2026 results, released on November 4, 2026, provide an important test of whether the company can keep shifting away from slower-growing smart-mobile exposure toward higher-value opportunities in artificial intelligence, optical networking, and power management. The quarter also coincided with major partnerships, including a $2 billion agreement with TSMC and a U.S.-Japan manufacturing initiative worth up to $21 billion. For investors, the report helped clarify whether margin expansion and a richer revenue mix can offset rising capital spending and ongoing mobile weakness.
Reported Results
GlobalFoundries posted third-quarter net revenue of $1.899 billion, up 13% year over year and 6% sequentially. Non-IFRS diluted EPS reached $0.53, up 29% year over year and ahead of the $0.51 consensus. Non-IFRS gross margin hit a company record of 31.4%, while non-IFRS operating margin expanded to 17.9%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On a reported IFRS basis, the company swung to a net loss of $270 million, or $(0.49) per diluted share, from a $249 million profit a year earlier. The primary driver was a $441 million non-cash charge related to issuing 9.9 million shares to the U.S. government. Excluding these items, non-IFRS net income was $298 million, and non-IFRS adjusted EBITDA reached $647 million.
Growth came mainly from communications infrastructure and data center, which jumped 81% year over year to $316 million. Automotive revenue rose 20% to $368 million, and home and industrial IoT grew 49% to $384 million. Smart mobile devices fell 19% to $611 million, now representing just 32% of revenue—the lowest share in company history. Cash from operations totaled $341 million, down from $595 million a year earlier.
Market Reaction and Investor Sentiment
Even though the company topped consensus estimates, GFS shares declined roughly 8% to around $39 on the day of the release. The reaction indicates investors focused more on forward concerns than on the headline beat. Management signaled that 2027 net capital expenditures will rise to about $4 billion, above recent levels, while the fully diluted share count is also expected to increase—factors that could pressure near-term free cash flow and per-share earnings growth. The ongoing double-digit decline in smart mobile devices remains a visible headwind, even as faster-growing segments gain share.
Forward Outlook and Key Factors to Monitor
For the fourth quarter of 2026, GlobalFoundries guided to revenue of $2.0 billion (plus or minus $25 million), non-IFRS gross margin of 31.5% (plus or minus 100 basis points), and non-IFRS diluted EPS of $0.59 (plus or minus $0.05). Management also reiterated expectations for full-year non-IFRS adjusted free cash flow margin of roughly 10%.
Looking ahead, a few items stand out. Silicon photonics revenue is now expected to reach about $500 million in 2026 and achieve a $1 billion annualized run rate exiting 2027, a full year ahead of the prior target. The TSMC agreement to supply U.S.-made silicon interposers for advanced packaging should begin volume production in the first half of 2028, adding a new long-duration revenue stream. Investors will also want to monitor execution of the U.S.-Japan fab expansion, which uses a capital-light, fee-based model, the timing of additional share issuances to the U.S. government, and the pace of any recovery or continued decline in smart mobile devices.
Using AI Tools to Refine My View
From what I see, tools like Tickeron’s AI Screener help me quickly compare GFS against peers on fundamentals, technical patterns, and industry trends without spending hours on manual screening. It has become a regular part of my process when reviewing earnings reports like this one.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for GFS turns negative, indicating new downward trend
GFS saw its Momentum Indicator move below the 0 level on October 28, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 98 similar instances where the indicator turned negative. In 81 of the 98 cases, the stock moved further down in the following days. The odds of a decline are at 83%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for GFS turned negative on October 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 36 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 75%.
GFS moved below its 50-day moving average on October 28, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GFS crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 78%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GFS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +5.20% 3-day Advance, the price is estimated to grow further. Considering data from situations where GFS advanced for three days, in 232 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
GFS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 110 of 145 cases where GFS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 50 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 59 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.903) is normal, around the industry mean (5.869). P/E Ratio (31.271) is within average values for comparable stocks, (16.161). Projected Growth (PEG Ratio) (0.718) is also within normal values, averaging (3.803). Dividend Yield (0.012) settles around the average of (0.012) among similar stocks. P/S Ratio (3.464) is also within normal values, averaging (46.468).
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. GFS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 81 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GFS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
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