GFS · GLOBALFOUNDRIES Inc.

GlobalFoundries delivered Q1 2026 results with revenue of $1.634 billion, reflecting a 3% year-over-year increase but an 11% sequential decline from Q4 2025's $1.830 billion, alongside 579 thousand 300mm equivalent wafer shipments, down 6% sequentially. Gross margin held steady at 27.6% (IFRS) and 29.0% (Non-IFRS), matching prior quarter Non-IFRS levels despite lower volume, indicating effective cost controls. Operating profit of $180 million yielded an 11.0% margin (down from 13.9% prior quarter), while Non-IFRS operating margin was 16.6%. Net income fell to $104 million from $200 million sequentially, with diluted EPS at $0.18, pressured by higher income tax expense of $81 million including $38 million from German deferred tax revaluation. CEO Tim Breen highlighted strong execution with all Non-IFRS profitability metrics at or above guidance highs, crediting global teams and customer focus in secular growth markets like AI and automotive. Business momentum included the May 2026 launch of SCALE CPO optical solution, first OCI MSA-compliant platform for AI interconnects; expanded multi-billion dollar Renesas partnership for automotive and IoT; silicon photonics advancements at OFC with SENKO, Corning, EXFO, and Siluxtek; and Auto Grade 1 eMRAM on FDX platform. Balance sheet remains solid with $3.8 billion in cash and equivalents plus marketable securities, bolstered by $542 million operating cash flow (up 45% sequentially). Q2 guidance signals rebound with revenue $1,760 million ±$25 million (up ~8% sequentially), Non-IFRS gross margin 28.5% ±100bps, and Non-IFRS EPS $0.43 ±$0.05, reflecting anticipated demand recovery in key end-markets.