GLOBALFOUNDRIES (GFS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.634 billion, up 3% year-over-year, with all non-IFRS profitability metrics at or above the high end of guidance ranges and adjusted EBITDA at $561 million.

• Record gross margin expansion, with non-IFRS gross margin at 29%, the largest year-over-year increase in over three years.

• Double-digit growth in automotive and communications infrastructure/data center segments, with CI&D achieving its sixth consecutive quarter of double-digit growth.

• Major product launches included the SCALE silicon photonics platform and new partnerships, such as a multi-billion dollar deal with Renesas and expanded collaborations with Apple and Bosch.

• Continued execution on technology innovation, customer engagement, and a diversified global manufacturing footprint.

Financial highlights

• Q1 2026 revenue: $1.634 billion, up 3.1% year-over-year, down 11% sequentially.

• Non-IFRS gross margin: 29%, up 510bps year-over-year; IFRS gross margin: 27.6%, up 520bps.

• Operating profit: $271 million (16.6% margin), up 320bps year-over-year; non-IFRS adjusted EBITDA: $561 million (34.3% margin).

• Net income: $227 million non-IFRS (up 20% year-over-year); IFRS net income: $104 million, down 51% year-over-year.

• Adjusted free cash flow: $233 million (14% margin); cash from operations: $542 million, up 64% year-over-year.

• CapEx (net of grants): $309 million (19% of revenue); cash and equivalents: $3.8 billion; total debt: $1.1 billion.

• Repurchased $400 million in shares; $100 million remains under current authorization.

Outlook and guidance

• Q2 2026 revenue guidance: $1.76 billion ±$25 million; 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%.

• Communications infrastructure/data center revenue expected to grow high 30s% year-over-year in 2026; automotive to deliver low double-digit growth.

• Smart mobile devices revenue to decline high single digits, outperforming overall smartphone market; IoT revenue expected to rebound in Q2 and grow mid single digits for 2026.