GLOBALFOUNDRIES surpasses revenue and earnings expectations; provides Q4 forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Should l Buy GFS?
Source: SeekingAlpha
Q3 Financial Performance: GLOBALFOUNDRIES reported a Q3 Non-GAAP EPS of $0.41, beating expectations by $0.03, with revenue of $1.69 billion, a 2.9% year-over-year decline, but still exceeding estimates by $10 million.
Fourth Quarter Guidance: For Q4 2025, the company anticipates net revenue of approximately $1.8 billion, with a gross margin of 27.6% and diluted EPS projected at $0.35, indicating a positive outlook compared to consensus estimates.
Cash Flow and Financial Health: The company ended the quarter with $4.2 billion in cash and marketable securities, generating $595 million in net cash from operating activities and $451 million in adjusted free cash flow.
Strategic Positioning: GLOBALFOUNDRIES is focusing on its "China-for-China" strategy and is seeing positive developments, including licensing next-generation technology from Taiwan Semiconductor, which may enhance its competitive edge.
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Analyst Views on GFS
Wall Street analysts forecast GFS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFS is 38.88 USD with a low forecast of 35.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 40.970
Low
35.00
Averages
38.88
High
45.00
Current: 40.970
Low
35.00
Averages
38.88
High
45.00
About GFS
GlobalFoundries Inc. is a semiconductor manufacturer. The Company offers a range of mainstream wafer fabrication services and technologies. It manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. Its specialized foundry manufacturing processes include a library consisting of qualified circuit-building block designs (known as IP titles or IP blocks), and advanced transistor and device technology. The Company's differentiated technology platforms include radio frequency (RF) silicon-on-insulator (SOI), Fin Field-Effect Transistor (FinFET), FDX, Complementary Metal-Oxide Semiconductor (CMOS), Silicon Germanium (SiGe), Gallium Nitride (GaN), Bipolar-CMOS-DMOS (BCD), and Silicon Photonics (SiPh).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Board Member: GlobalFoundries has appointed Ganesh Moorthy to its board, who previously served as CEO of Microchip Technology and brings over 40 years of semiconductor industry experience, expected to significantly support GF's strategic execution and technological innovation.
- Rich Leadership Experience: Moorthy's leadership at Microchip included roles as CEO and board member until his retirement in 2024, and he spent 19 years at Intel, accumulating deep expertise in manufacturing and product innovation, which will enhance GF's competitive edge in the market.
- Strategic Alignment: GF's Executive Chairman, Thomas Caulfield, stated that Moorthy's addition will accelerate the company's innovation process and strengthen GF's role as a trusted partner, driving its leadership in essential semiconductor technologies.
- Global Manufacturing Footprint: Moorthy's appointment further reinforces GF's long-term growth strategy aimed at meeting global customer demands for power-efficient semiconductors through robust manufacturing capabilities and differentiated technologies, positioning the company for success in rapidly growing markets.
See More
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- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
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Market Dynamics: The article discusses the impact of recent federal actions on the stock market, particularly focusing on the rise of USA Rare Earths and the potential for increased investment in domestic mining and manufacturing sectors.
Investment Opportunities and Risks: Investors are encouraged to consider the strategic implications of federal policies on rare earths and AI, while also being aware of the associated risks and market volatility.
Energy Sector Focus: The article highlights the growing importance of energy resources, particularly in the context of nuclear energy and domestic capacity, as the government prioritizes energy independence and infrastructure development.
Future Projections: Analysts suggest that upcoming earnings reports and market trends will significantly influence investor sentiment and stock valuations, emphasizing the need for careful monitoring of market conditions and government policies.
See More
GFS Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $45.00 put option is $7.50, and if an investor sells this contract, they commit to buying shares at $45.00, effectively lowering their cost basis to $37.50, which is approximately a 2% discount from the current price of $45.78, making it attractive for those interested in GFS stock.
- Yield Potential Analysis: Should the put option expire worthless, the investor could realize a 16.67% return, annualized at 8.41%, referred to as YieldBoost, highlighting the potential attractiveness of this investment strategy.
- Call Option Returns: The $55.00 call option has a current bid of $10.00, and if an investor buys GFS shares at $45.78 and sells this contract, they could achieve a total return of 41.98% if the stock is called away at the January 2028 expiration, showcasing the high return potential of this strategy.
- Risk-Reward Trade-off: The $55.00 call option represents a 20% premium, with a 43% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, further enhancing the investment's return potential.
See More
Boeing and GlobalFoundries Options Trading Volume Surge
- Boeing Options Volume: Boeing Co. (BA) saw options trading volume of 398,242 contracts, equivalent to approximately 39.8 million shares, representing a staggering 512.9% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Frequency Trading: Notably, the $250 strike call option expiring on January 30, 2026, recorded 23,271 contracts traded today, representing about 2.3 million underlying shares, suggesting a significant bullish sentiment among investors regarding Boeing's stock price.
- GlobalFoundries Options Activity: GlobalFoundries Inc. (GFS) reported an options trading volume of 85,799 contracts, translating to approximately 8.6 million shares, which is 229.4% of its average daily trading volume over the past month, reflecting strong market interest in its stock.
- Bullish Options Trading: The $55 strike call option expiring on April 17, 2026, saw 45,865 contracts traded today, representing around 4.6 million underlying shares, indicating investor confidence in GlobalFoundries' future growth prospects.
See More
Intel (INTC) Shares Surge 9% Ahead of Q4 Earnings Release
- Positive Market Performance: The semiconductor sector showed strong performance on Wednesday, with Intel's shares rising 9%, reflecting investor optimism ahead of its upcoming earnings report, which could drive future stock performance.
- Competitor Gains: Micron Technology (MU) and AMD saw increases of 5% and 5.5% respectively, while Marvell Technology (MRVL) rose by 2%, indicating a robust rebound across the semiconductor industry that may attract more investor interest.
- Market Index Recovery: The Philadelphia Semiconductor Index (SOX) increased by nearly 2%, reflecting growing confidence in the semiconductor sector, which could promote investment and growth for related companies.
- Analyst Optimism: J.P. Morgan noted that many semiconductor firms have “considerable upside” in the AI accelerator market, potentially attracting more capital into the sector and further driving stock price increases.
See More
GlobalFoundries Appoints Ganesh Moorthy to Board, Enhancing Semiconductor Expertise
- New Board Member: GlobalFoundries has appointed Ganesh Moorthy to its board, who previously served as CEO of Microchip Technology and brings over 40 years of semiconductor industry experience, expected to significantly support GF's strategic execution and technological innovation.
- Rich Leadership Experience: Moorthy's leadership at Microchip included roles as CEO and board member until his retirement in 2024, and he spent 19 years at Intel, accumulating deep expertise in manufacturing and product innovation, which will enhance GF's competitive edge in the market.
- Strategic Alignment: GF's Executive Chairman, Thomas Caulfield, stated that Moorthy's addition will accelerate the company's innovation process and strengthen GF's role as a trusted partner, driving its leadership in essential semiconductor technologies.
- Global Manufacturing Footprint: Moorthy's appointment further reinforces GF's long-term growth strategy aimed at meeting global customer demands for power-efficient semiconductors through robust manufacturing capabilities and differentiated technologies, positioning the company for success in rapidly growing markets.
See More
