GlobalFoundries reported Q2 2026 revenue of $1.786 billion, exceeding the high end of its guidance range as demand strengthened across strategic growth markets. Revenue increased 6% year-over-year and 9% sequentially, supported by higher wafer shipments and growing demand in areas including optical networking for AI data centers. Wafer shipments reached 625,000 300mm-equivalent wafers, up 8% both year-over-year and sequentially.

Gross margin improved to 28.3%, compared with 24.2% a year earlier and 27.6% in Q1 2026. On a non-IFRS basis, gross margin reached 29.9%, up 470 basis points year-over-year. Non-IFRS operating income increased 16% year-over-year to $298 million, corresponding to a 16.7% operating margin. Adjusted EBITDA was $587 million, broadly flat year-over-year, with an adjusted EBITDA margin of 32.9%.

Net income was $167 million, or $0.30 per diluted share, compared with $228 million and $0.41 per share in Q2 2025. On a non-IFRS basis, net income increased 9% year-over-year to $256 million, while diluted EPS rose 10% to $0.46. Cash generated from operations totaled $405 million, while capital expenditures of $411 million resulted in adjusted free cash flow of negative $3 million.

CEO Tim Breen highlighted accelerating customer demand and revenue growth across GlobalFoundries’ strategic growth areas, particularly optical networking for AI data centers. The company said its silicon photonics and silicon germanium technologies are supporting customer requirements for next-generation high-speed optical connectivity.

In July 2026, GlobalFoundries signed a letter of intent with the U.S. Department of Commerce for an expected $300 million award aimed at advancing U.S. silicon photonics capabilities. The planned funding is intended to support next-generation optical materials, wafer technologies, and advanced packaging for applications including AI infrastructure.

The company also completed the acquisition of Photeon Technologies’ integrated voltage regulator business in July. The transaction adds IVR technology, specialized engineering expertise, and additional R&D capabilities, complementing GlobalFoundries’ existing BCD, GaN, and integrated inductor technologies for power delivery applications in AI data centers.

In June, GlobalFoundries completed its acquisition of Synopsys’ ARC Processor IP Solutions business. Together with MIPS, the acquired capabilities expand GlobalFoundries’ RISC-V processor IP, software tools, custom design, and advanced manufacturing offering, supporting a broader software-to-silicon platform for Physical AI and related applications.

The company also highlighted the launch of Quantum Technology Solutions in May 2026, building on its work in cryogenic CMOS, advanced packaging, and materials science. The initiative is expected to be supported by a proposed $375 million U.S. Department of Commerce grant under a letter of intent.

GlobalFoundries ended the quarter with $3.3 billion in cash, cash equivalents, and marketable securities. The company also paid its first quarterly cash dividend of $0.12 per share on July 14, 2026, and its Board approved another $0.12 per share dividend payable on October 9, 2026 to shareholders of record as of September 23, 2026.

For Q3 2026, GlobalFoundries expects revenue of $1.885 billion, plus or minus $25 million. IFRS gross margin is forecast at 29.5%, plus or minus 100 basis points, while non-IFRS gross margin is expected at 30.5%. Diluted EPS is projected at $0.37, plus or minus $0.05, with non-IFRS diluted EPS expected at $0.51, plus or minus $0.05.

Original – GlobalFoundries