Globalfoundries Stock Earnings Reports

GlobalFoundries delivered a strong Q1 2026 with revenue of $1.634B (up 3.1% YoY), non-IFRS gross margin of ~29% (a >500 bps YoY expansion), operating margin of 16.6%, net income of ~$227M and adjusted free cash flow of $233M. Management reiterated a 3-pillar strategy — differentiated technology roadmap (notably silicon photonics and high-performance SiGe), deeper customer engagement (design-win momentum, partnerships including Renesas and Apple), and a diversified three-continent manufacturing footprint — and highlighted accelerating design wins (50% YoY increase) and capacity constraints/strong demand in key corridors. Key end-market takeaways: communications infrastructure & data center grew ~32% YoY and is expected to grow high-30s% in 2026 (silicon photonics projected to roughly double in 2026 and to exceed $1B revenue run-rate by end-2028); automotive grew 24% YoY and is expected to deliver low double-digit growth in 2026; smart mobile devices declined (driven by industry smartphone units) and are expected to modestly underperform but benefit from new AI form factors; IoT was down Q1 but expected to rebound in Q2 and grow mid-single-digits in 2026. Financial posture and outlook: Q2 revenue guide $1.76B +/- $25M; Q2 gross margin ~28.5% +/-100 bps; Q2 diluted EPS ~$0.43 +/- $0.05 (555M shares); full-year CapEx expected 15–20% of revenue, adjusted FCF margin target ~10% for 2026 skewed to H2. Company completed large share repurchase ($400M of $500M authorization) and ended Q1 with ~$3.8B cash and $1.1B debt. Management emphasized continued targeted CapEx to relieve constrained corridors (FDX, silicon photonics, high-performance SiGe), customer prepayments and government support for investments, plus upcoming Investor Day (May 7) for more detail.