GlobalFoundries Q3 2026: Record Margins, a $441M Charge, and Bold Q4 Guidance
As seen on the 24/7 Wall St. homepage on November 4, 2026.
AI and data-center orders pushed non-IFRS gross margin to a record 31.4%, and management guided fourth-quarter revenue to $2.00 billion with adjusted EPS of $0.59, another step up. The IFRS net loss stems from a $441 million non-cash charge for shares issued to the US government, leaving demand intact.
Continue ReadingShow less
GlobalFoundries posted adjusted non-GAAP EPS of $0.53 for the third quarter of 2026, beating the consensus estimate of $0.51. Revenue of $1.90 billion edged past the $1.89 billion estimate and grew 12.5% year over year, with gross profit rising from the same period a year ago.
Non-IFRS gross margin reached a record 31.4%, driven by what CEO Tim Breen described as a richer mix of business across high-value, high-growth AI applications. Wafer shipments climbed to 647 thousand 300mm-equivalent wafers from 602 thousand a year ago, with Communications Infrastructure and Data Center posting record year-over-year revenue growth and Automotive also contributing strong gains.
On an IFRS basis, GlobalFoundries reported a net loss of $270 million, largely the result of a $441 million non-cash charge tied to the issuance of 9.9 million shares to the U.S. government. That charge also absorbed a $0.79 hit to IFRS diluted EPS, which came in at $(0.49). Management was clear that the charge does not reflect the state of underlying demand, and operating income still rose year over year to $230 million.
Sponsored
On the strategic front, the quarter brought a significant expansion of GF's long-term footprint. The company was selected as technology provider and operator for two new Malta, New York fabs under a U.S.-Japan initiative with up to $21 billion in funding, with capacity expected online in 2029. GF also announced a multi-year $2 billion agreement with TSMC to supply U.S.-made silicon interposers for advanced packaging, with volume ramp expected in the first half of 2028.
For the fourth quarter of 2026, management guided revenue of $2.00 billion and non-GAAP EPS of $0.59, both steps up from Q3. Non-IFRS gross margin is guided to 31.5%, slightly above the Q3 record, while non-IFRS operating margin is expected at 19.8%. The guidance excludes future non-cash charges from additional share issuances to the U.S. government, whose timing and amount remain uncertain.
Mentioned: GFS