GLOBALFOUNDRIES (GFS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.634B, up 3% year-over-year, with all non-IFRS profitability metrics at or above the high end of guidance and non-IFRS EPS of $0.40, an 18% increase year-over-year.

• Achieved double-digit growth in automotive and communications infrastructure/data center, with the latter marking its sixth consecutive quarter of double-digit year-over-year growth.

• Continued transformation into a holistic technology solutions provider, integrating recent acquisitions and expanding technology and manufacturing services.

• $400M in shares repurchased during Q1 2026, with $100M remaining under current authorization.

• Major product launches included the SCALE silicon photonics platform and new partnerships in automotive and silicon photonics.

Financial highlights

• Q1 2026 revenue was $1.634B, down 11% sequentially, up 3.1% year-over-year; non-IFRS gross margin reached 29%, up 510bps year-over-year.

• Operating profit was $271M (16.6% margin), non-IFRS net income $227M (up 20% year-over-year), and diluted EPS $0.40; non-IFRS adjusted EBITDA was $561M (34.3% margin).

• Cash flow from operations was $542M, up 64% year-over-year; adjusted free cash flow $233M (14% margin); CapEx $312M (19% of revenue).

• Cash, cash equivalents, and marketable securities totaled $3.8B at quarter end; total debt $1.1B; $1B undrawn credit facility.

Outlook and guidance

• Q2 2026 revenue expected at $1.76B ±$25M; non-IFRS gross margin ~28.5% ±100bps; non-IFRS diluted EPS $0.43 ±$0.05.

• Full-year 2026 CapEx expected at 15%-20% of revenue; adjusted free cash flow margin ~10%, skewed to the second half.

• Communications infrastructure/data center revenue growth outlook raised to high 30s% for 2026; automotive to deliver low double-digit growth; smart mobile devices to decline high single digits.