GLOBALFOUNDRIES (GFS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.79B, up 6% year-over-year and 9% sequentially, exceeding guidance high end, with non-IFRS profitability and margins at or above guidance, driven by robust execution and accelerating demand in key technology corridors.

• Communications infrastructure and data center revenue grew 62% year-over-year, marking one of the fastest growth quarters, with strong demand for silicon photonics and SiGe.

• Strategic progress in quantum technology, optical networking for AI data centers, and expansion in IP, software, and custom silicon capabilities, supported by major government grants and partnerships.

• Record design wins across communications, data center, and smart mobile devices, with endorsements from major industry players and expansion in R&D and IP portfolio through acquisitions.

• Paid first-ever quarterly cash dividend of $0.12 per share; board approved ongoing quarterly dividends.

Financial highlights

• Q2 2026 revenue: $1.786 billion, up 9% sequentially and 6% year-over-year; non-IFRS gross margin: 29.9%, up 470bps year-over-year; IFRS gross margin: 28.3%.

• Non-IFRS operating profit: $298 million (16.7% margin); IFRS operating profit: $174 million; non-IFRS net income: $256 million; IFRS net income: $167 million.

• Non-IFRS diluted EPS: $0.46 (up 10% YoY); IFRS diluted EPS: $0.30.

• Cash flow from operations: $405 million; CapEx (net of grants): $408 million (23% of revenue); adjusted free cash flow: -$3 million.

• Cash, equivalents, and marketable securities: $3.3 billion; total debt: $1.1 billion.

Outlook and guidance

• Q3 2026 revenue expected at $1.885 billion ±$25 million; non-IFRS gross margin: 30.5% ±100bps; non-IFRS operating margin: 16.7% ±170bps; non-IFRS diluted EPS: $0.51 ±$0.05.

• Full-year 2026: communications infrastructure and data center revenue growth expected at 50%-60%, automotive low double-digit growth, IoT 10%-15%, smart mobile devices to decline low teens%.

• Adjusted free cash flow margin for 2026 expected at ~10%.