Preview: GLOBALFOUNDRIES's Earnings
GLOBALFOUNDRIES (NASDAQ:GFS) is preparing to release its quarterly earnings on Tuesday, 2025-08-05. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect GLOBALFOUNDRIES to report an earnings per share (EPS) of $0.33.
Investors in GLOBALFOUNDRIES are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.05, leading to a 1.09% increase in the share price the following trading session.
Here's a look at GLOBALFOUNDRIES's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.29 | 0.45 | 0.33 | 0.28 |
| EPS Actual | 0.34 | 0.46 | 0.41 | 0.38 |
| Price Change % | 1.0% | 9.0% | 13.0% | -1.0% |
Stock Performance
Shares of GLOBALFOUNDRIES were trading at $36.58 as of August 01. Over the last 52-week period, shares are down 15.41%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Views on GLOBALFOUNDRIES
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on GLOBALFOUNDRIES.
Analysts have provided GLOBALFOUNDRIES with 5 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $43.0, suggesting a potential 17.55% upside.
Comparing Ratings with Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of First Solar, Astera Labs and Credo Technology Group, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for First Solar, with an average 1-year price target of $215.21, suggesting a potential 488.33% upside.
- Analysts currently favor an Outperform trajectory for Astera Labs, with an average 1-year price target of $102.88, suggesting a potential 181.25% upside.
- Analysts currently favor an Outperform trajectory for Credo Technology Group, with an average 1-year price target of $95.43, suggesting a potential 160.88% upside.
Peers Comparative Analysis Summary
The peer analysis summary provides a snapshot of key metrics for First Solar, Astera Labs and Credo Technology Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| GLOBALFOUNDRIES | Neutral | 2.32% | $355M | 1.92% |
| First Solar | Outperform | 8.58% | $499.85M | 4.09% |
| Astera Labs | Outperform | 144.33% | $119.41M | 3.17% |
| Credo Technology Group | Outperform | 179.73% | $114.19M | 5.63% |
Key Takeaway:
In terms of consensus rating, GLOBALFOUNDRIES is rated neutral compared to its peers. It ranks at the bottom for revenue growth among its peers. For gross profit, GLOBALFOUNDRIES is at the top among its peers. When it comes to return on equity, GLOBALFOUNDRIES is positioned in the middle compared to its peers.
All You Need to Know About GLOBALFOUNDRIES
GlobalFoundries is a top-five contract semiconductor manufacturer globally. It was originally the manufacturing arm of Advanced Micro Devices before it was spun out in 2009. The foundry sells chips into a range of end markets including smartphones, PCs, Internet of Things, data centers, automotive, industrial, and so on, but primarily focuses on more mature process technologies. Until 2021, the firm was privately held by Mubadala Investment, the sovereign wealth fund of the United Arab Emirates, which remains its controlling shareholder today. GlobalFoundries merged with Chartered Semiconductor Manufacturing in 2009 and acquired IBM's chipmaking business in 2015. GF is headquartered in Malta, New York, and employs about 13,000 people.
Breaking Down GLOBALFOUNDRIES's Financial Performance
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: GLOBALFOUNDRIES's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 2.32%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 13.25%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.92%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): GLOBALFOUNDRIES's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.26%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: GLOBALFOUNDRIES's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.15.
To track all earnings releases for GLOBALFOUNDRIES visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
