GLOBALFOUNDRIES Inc. (GFS): Financial results for Q3 2026
GLOBALFOUNDRIES Inc. (GFS) furnished an SEC Form 6-K — earnings release. GlobalFoundries Reports Third Quarter 2026 Financial Results Malta, New York , November 4, 2026 - GLOBALFOUNDRIES Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the third quarter ended September 30, 2026. Key Third Quarter Financial Highlights • Revenue
How this was made
The 30-second read
Why it matters
The earnings miss and loss are likely to trigger short‑term selling, but the announced contracts and funding could buoy the stock over the next quarters.
Market read
The release is a primary earnings disclosure for a mid‑cap chipmaker, offering fresh data that can move the stock today.
What to watch
The $21 B U.S.–Japan fab funding and $955 M CHIPS award amendment may provide longer‑term upside not reflected in the immediate price move.
GlobalFoundries Reports Third Quarter 2026 Financial Results
Revenue, gross margin, operating profit, Non-IFRS net income, Non-IFRS EPS and wafer shipments increased both year over year and sequentially. The reported IFRS net loss was primarily driven by a $441 million non-cash charge from the issuance of shares to the USG.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenueother | $1.90B | $113 6 % | $211 13 % |
| Q3 2026 cost of revenueother | 1,328 | – | – |
| Q3 2026 gross profitother | $571M | $66 13 % | $152 36 % |
| Q3 2026 gross marginother | 30.1 % | +180bps | +530bps |
| Q3 2026 Non-IFRS gross profitnon-GAAP | $597M | $63 12 % | $158 36 % |
| Q3 2026 Non-IFRS gross marginnon-GAAP | 31.4 % | +150bps | +540bps |
| Q3 2026 research and developmentother | 184 | – | – |
| Q3 2026 selling, general and administrativeother | 157 | – | – |
| Q3 2026 operating expensesother | $341M | – | – |
| Q3 2026 operating profitother | $230M | $56 32 % | $35 18 % |
| Q3 2026 operating marginother | 12.1 % | +240bps | +50bps |
| Q3 2026 Non-IFRS operating profitnon-GAAP | $340M | $42 14 % | $80 31 % |
| Q3 2026 Non-IFRS operating marginnon-GAAP | 17.9 % | +120bps | +250bps |
| Q3 2026 finance income (expense), netother | 9 | – | – |
| Q3 2026 other income (expense), netother | (439) | – | – |
| Q3 2026 income tax (expense) benefitother | (70) | – | – |
| Q3 2026 net income (loss)other | −$270M | $ (437) (262) % | $ (519) (208) % |
| Q3 2026 net income (loss) marginother | (14.2) % | (2,360)bps | (2,900)bps |
| Q3 2026 Non-IFRS net incomenon-GAAP | $298M | $42 16 % | $66 28 % |
| Q3 2026 Non-IFRS net income marginnon-GAAP | 15.7 % | +140bps | +200bps |
| Q3 2026 basic EPSother | $ (0.49) | – | – |
| Q3 2026 diluted EPSother | $ (0.49) | $ (0.79) (263) % | $ (0.93) (211) % |
| Q3 2026 Non-IFRS diluted EPSnon-GAAP | $0.53 | $0.07 15 % | $0.12 29 % |
| Q3 2026 Non-IFRS adjusted EBITDAnon-GAAP | $647M | $60 10 % | $74 13 % |
| Q3 2026 Non-IFRS adjusted EBITDA marginnon-GAAP | 34.1 % | +120bps | +20bps |
| Q3 2026 net cash provided by operating activitiesother | $341M | $ (64) (16) % | $ (254) (43) % |
| Q3 2026 Non-IFRS total capital expenditures net of proceeds from government grantsnon-GAAP | −$205M | – | – |
| Q3 2026 Non-IFRS adjusted free cash flownon-GAAP | $136M | – | – |
| Q3 2026 Non-IFRS adjusted free cash flow marginnon-GAAP | 7.2 % | – | – |
| Q3 2026 wafer shipments (300mm equivalent) (in thousands)other | 647K | 22 4 % | 45 7 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 outlook
- Revenue$2,000 ± $25
- Gross margin30.7% ± 100bps
- Operating expenses$287 ± $10
- NoteNon-IFRS gross margin: 31.5% ± 100bps
- NoteShare-based compensation in cost of revenue: $16 million
- NoteShare-based compensation in operating expenses: $52 million
- NoteIFRS operating margin: 16.4% ± 170bps
- NoteNon-IFRS operating expenses: $235 ± $10
- NoteNon-IFRS operating margin: 19.8% ± 170bps
- NoteIFRS diluted EPS: $0.47 ± $0.05
- NoteNon-IFRS diluted EPS: $0.59 ± $0.05
- NoteFully Diluted Share Count: ~575
- NoteNet interest income (expense) and other income (expense): between $(5) million and $1 million
- NoteIncome tax expense: between $44 million and $68 million
Capital returns
- Repurchase of shares: $ (100)
- Cash paid for dividends: (66)
- On October 27, 2026, the Board of Directors approved a dividend of $0.12 per share payable on January 14, 2027 to shareholders of record as of December 22, 2026.
What drove it
- Management cited a richer mix of business across high-value, high-growth AI applications for record Non-IFRS gross margin.
- Management cited record year-over-year revenue growth in Communications Infrastructure and Data Center, along with strong growth in Automotive and Home and Industrial IoT.
- The company issued 9.9 million ordinary shares to the USG in September 2026, producing a $441 million non-cash charge in non-operating expense.
- GF entered into a multi-year, $2 billion manufacturing agreement with TSMC for a U.S.-based supply of silicon interposers, with volume production expected to begin ramping in the first half of 2028.
- GF and the USG agreed to amend the existing CHIPS and Science Act award, reallocating $955 million of incentives for investments in Malta, New York and Burlington, Vermont.
Concerns
- IFRS net income (loss) was $ (270), compared with $249 in Q3 2025 and $167 in Q2 2026.
- Net cash provided by operating activities was $341, compared with $595 in Q3 2025 and $405 in Q2 2026.
- Non-IFRS adjusted free cash flow was $136, compared with $451 in Q3 2025.
- The Q4 2026 outlook does not include expected non-cash charges in non-operating expense for additional common share issuances to the USG because the timing and amount are uncertain.
- The release identifies geopolitical conditions, trade controls, tariffs and counter-tariffs, slower market development or recovery, and potential delays or withholding of expected funding as risks.
What to watch
- Delivery against Q4 2026 net revenue guidance of $2,000 ± $25.
- Delivery against Q4 2026 IFRS gross margin guidance of 30.7% ± 100bps and Non-IFRS gross margin guidance of 31.5% ± 100bps.
- Timing and amount of potential non-cash charges for additional common share issuances to the USG.
- Execution of the TSMC silicon-interposer agreement, for which volume production is expected to begin ramping in the first half of 2028.
- Construction of the new 300mm semiconductor fab in Malta, New York, where capacity is expected to come online in 2029.
Balance sheet and cash flow
- Ending cash, cash equivalents and marketable securities: $3.2 billion
- Cash and cash equivalents as of September 30, 2026: $ 997; as of December 31, 2025: $ 1,809
- Marketable securities as of September 30, 2026: 1,258 current and 957 non-current; as of December 31, 2025: 1,241 current and 939 non-current
- Current portion of long-term debt as of September 30, 2026: $ 99; as of December 31, 2025: $ 86
- Non-current portion of long-term debt as of September 30, 2026: $ 1,037; as of December 31, 2025: $ 1,065
- Purchases of property, plant and equipment and intangible assets: $ (301); September 30, 2025: $ (189)
- Proceeds from government grants: 96; September 30, 2025: 45
- Net cash used in investing activities: $ (255); September 30, 2025: $ (329)
- Net cash used in financing activities: $ (178); September 30, 2025: $ (40)
- Net change in cash and cash equivalents: $ (90); September 30, 2025: $ 226
- Cash and cash equivalents at the end of the period: $ 997; September 30, 2025: $ 2,016
Analysis
GlobalFoundries reported Q3 2026 net revenue of $1,899, up $211 13 % from Q3 2025 and $113 6 % from Q2 2026. Wafer shipments were 647 thousand 300mm equivalents, up 45 7 % year over year and 22 4 % sequentially. Management attributed the period to a richer mix in high-value AI applications and cited record year-over-year revenue growth in Communications Infrastructure and Data Center, plus strong growth in Automotive and Home and Industrial IoT.
Profitability improved materially at the gross-profit and operating-profit levels. IFRS gross margin was 30.1 %, up +530bps year over year and +180bps sequentially, while Non-IFRS gross margin was 31.4 %, up +540bps and +150bps, respectively. IFRS operating profit was $230 and Non-IFRS operating profit was $340. Non-IFRS adjusted EBITDA reached $647, with a 34.1 % margin.
The IFRS bottom line diverged from operating performance. The company reported net income (loss) of $ (270) and diluted EPS of $ (0.49), while Non-IFRS net income was $298 and Non-IFRS diluted EPS was $0.53. The company stated that issuing 9.9 million ordinary shares to the USG resulted in a $441 million non-cash charge recorded in non-operating expense and was the primary driver of the IFRS net loss. Cash generation was lower than both comparison periods, with net cash provided by operating activities of $341 and Non-IFRS adjusted free cash flow of $136.
Capital allocation included $ (100) of share repurchases and (66) of cash dividends paid during the quarter. The Board approved a $0.12 per share dividend payable on January 14, 2027. GF ended the period with $3.2 billion of cash, cash equivalents and marketable securities. The company also disclosed expanded manufacturing and government-partnership activity, including a $2 billion agreement with TSMC and a $955 million reallocation of incentives under its existing CHIPS and Science Act award.
For Q4 2026, GF guided to net revenue of $2,000 ± $25, IFRS gross margin of 30.7% ± 100bps, IFRS operating expenses of $287 ± $10, and IFRS diluted EPS of $0.47 ± $0.05. Non-IFRS guidance calls for gross margin of 31.5% ± 100bps, operating expenses of $235 ± $10, operating margin of 19.8% ± 170bps and diluted EPS of $0.59 ± $0.05. The guidance excludes the impact of expected non-cash charges for additional common share issuances to the USG because timing and amount are uncertain.
Management, verbatim
We delivered strong results in the third quarter, with record non-IFRS gross margin reflecting a richer mix of business across high-value, high-growth AI applications. We saw particularly strong momentum across our key growth markets, led by record year-over-year revenue growth in Communications Infrastructure and Data Center, as well as strong growth in Automotive and Home and Industrial IoT.
Tim Breen, CEO of GlobalFoundries
Together with the significant customer and government partnerships announced during the quarter, these results demonstrate the continued strategic diversification of GF’s business and the strength of our differentiated technologies.
Tim Breen, CEO of GlobalFoundries
Not in the filing
stated, not guessed- Prior-quarter cost of revenue was not reported on the cost of revenue line.
- Year-over-year and sequential changes for research and development, selling, general and administrative, operating expenses, finance income (expense), net, other income (expense), net, and income tax (expense) benefit were not reported on their respective lines.
- A Q4 2026 tax-rate guidance figure was not reported.
- Segment revenue, segment profit and segment-margin tables were not reported.
- Prior-quarter and prior-year comparisons for basic EPS were not reported on the basic EPS line beyond the prior-year value.
- Previous-period outlook was not provided; therefore, no comparison of Q3 2026 actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
GlobalFoundries released its Q3 2026 earnings via a Form 6‑K, providing both IFRS and non‑IFRS metrics and outlining upcoming guidance.
Ticker impact
GlobalFoundries disclosed Q3 2026 earnings with a net loss of $270 M and revised guidance for Q4 revenue of $2.0 B.
likely downside pressure as investors digest the quarterly loss despite margin improvement
The loss and lower‑than‑expected earnings outweigh the margin gains, prompting short‑term sell pressure.
Market effects
AI‑focused semiconductor demand may benefit peers, but the loss could temper enthusiasm for U.S. fab capacity expansion.
U.S. chip sector may see modest pullback as the loss highlights execution risk.
Limited; the filing is a company‑specific earnings release.
Counterpoint
The strong non‑IFRS margins and new government contracts could support a rebound if the market overreacts to the loss.
Key entities
- companyGlobalFoundries Inc.
U.S. semiconductor foundry reporting Q3 2026 results.
- governmentU.S. Government
Amended CHIPS award providing $955 M in incentives.
