GlobalFoundries Inc (GFSN) Q3 2026 Earnings Report
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MX:GFSN Q3 2026 EPS Results
- Actual EPS
- MXN 9.93
- Consensus EPS
- MXN 9.59
- Beat/Miss
- Beat by +MXN 0.34
- One Year Ago EPS
- MXN 7.68
MX:GFSN Q3 2026 Revenue Results
- Actual Revenue
- MXN 35.56B
- Expected Revenue
- MXN 35.38B
- Beat/Miss
- Beat by +MXN 182.21M
- YoY Revenue Growth
- +12.50%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- Before Open
- Conference Call
- Wednesday, November 4, 2026
MX:GFSN Upcoming Earnings
GlobalFoundries Inc's next earnings date is estimated for February 16, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:GFSN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. GF reported record gross margin, double-digit year-over-year growth in revenue, automotive, home and industrial IoT, and communications infrastructure and data center, while expanding customer partnerships, AI-related opportunities, optical networking capacity and government support. The primary negatives were the continued decline in smart mobile devices, utilization remaining in the high 80% range, higher operating expenses following acquisitions and the expected increase in the diluted share count from government equity issuance. Management maintained its financial targets and expressed increased confidence in long-term growth and margin objectives.
Company Guidance
For the fourth quarter of 2026, GF expects total revenue to be $2 billion, ±$25 million; gross margin to be approximately 31.5%, ±100 basis points, with approximately 250 basis points of year-over-year expansion at the midpoint; operating expenses excluding share-based compensation to be $235 million, ±$10 million; operating margin to be in the range of 19.8%, ±170 basis points; share-based compensation to be approximately $68 million, including roughly $16 million related to cost of goods sold; net interest and other income to be between -$5 million and $1 million; income tax expense to be between $44 million and $68 million; and diluted earnings per share to be $0.59, ±$0.05, based on approximately 575 million shares, with approximately 600 million shares commencing 2027. For 2026, technology services revenue is expected to represent approximately 12% of total revenue, communications infrastructure and data center revenue is expected to grow in the range of 60%-70%, automotive revenue will grow low double-digit percentage, smart mobile devices will decline by a low teens percentage year-over-year, home and industrial IoT will grow in the range of 10%-15%, the non-IFRS effective tax rate will be in the mid-teens percentage range, net CapEx is expected to be approximately 15%-20% of revenue, and free cash flow margin approximately 10%; in 2027, net CapEx investments are expected to be approximately $4 billion, with approximately 1/3 supported by customer prepayments, while silicon photonics revenue is expected to exit 2027 at an annualized run rate of approximately $1 billion.
- Strong Third-Quarter ResultsThird-quarter revenue was $1.899 billion, up 6% sequentially and 13% year-over-year, with revenue and non-IFRS profitability metrics at the high end of guidance.
- Record Gross Margin and Operating ProfitabilityNon-IFRS gross margin reached a company-record 31.4%, up 540 basis points year-over-year and at the high end of guidance. Operating profit was $340 million, with a 17.9% operating margin, up 250 basis points year-over-year and at the high end of guidance.
- Net Income and EPS GrowthThird-quarter net income was approximately $298 million, an increase of approximately $66 million from the prior-year period. Diluted earnings per share were $0.53, at the high end of the guidance range.
- Improved Business DiversificationMore than two-thirds of third-quarter revenue came from outside smart mobile devices, the highest proportion in GF's history. Management said the shift is creating a richer, more diversified and more resilient revenue base.
- Record Communications Infrastructure and Data Center GrowthCommunications infrastructure and data center revenue represented approximately 17% of total revenue, increasing 14% sequentially and 81% year-over-year. The end market delivered its eighth consecutive quarter of double-digit year-over-year growth, driven by optical networking, including silicon photonics and silicon germanium.
- Communications Infrastructure and Data Center Outlook Raised by Demand MomentumGF expects communications infrastructure and data center revenue to grow 60%-70% in 2026, supported by robust optical networking growth, accelerating customer demand and improved manufacturing productivity.
- Silicon Photonics Revenue and Capacity ExpansionGF expects to generate half a billion dollars of silicon photonics revenue in 2026 and now expects to exit 2027 at an annualized silicon photonics revenue run rate of approximately $1 billion, a full year ahead of prior expectations. The company plans to approximately triple silicon photonics capacity over the course of next year.
- Strong Silicon Photonics Customer EngagementGF is actively engaged with more than 50 silicon photonics customers, including seven of the top 10 optical transceiver suppliers, with active designs scheduled to ramp in 2027 and 2028 for scale across, scale out and scale up networks.
- Silicon Germanium Demand and Marvell PartnershipDemand for silicon germanium technology continues to exceed current capacity. Customer prepayments are supporting accelerated capacity investments, while the multi-year strategic partnership with Marvell will support significant SiGe capacity expansion at GF's Burlington fab for next-generation optical solutions.
- Advanced Packaging and TSMC AgreementUnder a five-year, $2 billion manufacturing agreement with TSMC, GF will establish a U.S.-based supply of silicon interposers for the CoWoS ecosystem. Volume production is expected to ramp at the Malta site in the first half of 2028, with gross margins above GF's long-term targets and co-investment from TSMC to help fund the required capital.
- U.S.-Japan Fab Expansion PartnershipThe U.S.-Japan initiative is designed to expand GF's Malta, New York capacity to mega-fab level, unlock substantial capacity growth and support future customer demand. GF said the structure allows faster capacity expansion without investing capital and is designed to generate profit per wafer comparable to owning the capacity itself.
- Reallocated CHIPS Funding and U.S. Government PartnershipGF reached an agreement with the U.S. Department of Commerce to reallocate $955 million of its existing CHIPS and Science Act award to accelerate capital expenditure and R&D investments at its Malta, New York, and Burlington, Vermont facilities, including silicon photonics, silicon germanium and advanced packaging. A separate agreement will issue 4% equity to the U.S. government, with total government ownership expected to be approximately 7% when all announced agreements are finalized.
- Automotive GrowthAutomotive represented approximately 19% of third-quarter revenue. Revenue increased 11% sequentially and 20% year-over-year, and GF continues to expect automotive revenue to grow low double-digit percentage in 2026.
- Home and Industrial IoT GrowthHome and industrial IoT represented approximately 20% of third-quarter revenue. Revenue increased 16% sequentially and 49% year-over-year, supported by broad-based strength across connectivity, tracking and sensing applications. GF expects the end market to grow 10%-15% in 2026.
- Custom Silicon and MIPS TractionDuring the third quarter, GF secured custom silicon design wins totaling nearly $1 billion of lifetime revenue, including platform wins for a radar system-on-chip, a RISC-V-based real-time control processor, a data center board management controller and an aerospace and defense engine control processor.
- Physical AI and Expanded Technology OfferingsMIPS announced three physical AI-native reference platforms focused on compute, AI inference and real-time control. GF is working with several customers on physical AI systems and said its combination of RISC-V compute and AI IP, design capabilities, AI-native platforms and manufacturing capabilities supports opportunities across vehicles, factories, robots, drones, satellites, medical devices and other edge systems.
- Technology Services Revenue GrowthTechnology services, including IP licensing, software, reticles, non-recurring engineering and other items, represented approximately 12% of third-quarter revenue. GF expects technology services revenue to represent approximately 12% of total revenue in 2026, at the upper end of its indicated range, with a gross margin profile above its long-term target.
- Wafer Shipment GrowthGF shipped approximately 647,000 300-mm equivalent wafers in the third quarter, up 4% sequentially and 7% year-over-year.
- Improving Pricing and MixBlended average selling prices increased approximately 2.5% sequentially and almost 5% year-over-year in the third quarter, marking the first year-over-year blended pricing improvement since 2023. Management expects approximately a 10% uplift in blended ASP and mix for 2027.
- Positive Cash Flow and Balance SheetThird-quarter cash flow from operations was $341 million, adjusted free cash flow was $136 million, and cash flow benefited from approximately $150 million of customer prepayments and government grants. GF ended the quarter with approximately $3.2 billion in cash, cash equivalents and marketable securities, $1.1 billion of total debt and an undrawn $1.5 billion revolving credit facility.
- Share Repurchases and DividendGF repurchased $100 million of shares during the third quarter. It paid a quarterly cash dividend of $0.12 per share on October 9 and approved another $0.12 per share dividend payable on January 14, 2027.
- Fourth-Quarter GuidanceGF expects fourth-quarter revenue of $2 billion, ±$25 million; gross margin of approximately 31.5%, ±100 basis points; operating margin of 19.8%, ±170 basis points; and diluted EPS of $0.59, ±$0.05. At the midpoint, gross margin would represent approximately 250 basis points of year-over-year expansion.
- Long-Term Margin ProgressManagement said GF remains on track for its previously stated gross-margin goals of exiting 2027 at 35% and exiting 2028 at 40%. The company said mix, technology services, utilization, pricing, productivity and strategic partnerships are supporting progress toward those targets.
- 2027 Capacity Investment Supported by Customers and GovernmentGF expects approximately 1/3 of its 2027 net CapEx to be supported by customer prepayments for incremental capacity agreements. It expects net CapEx investments of approximately $4 billion in 2027, with customer demand, prepayments, investment tax credits and government grants supporting continued free cash generation.
- Capacity Expansion EconomicsManagement said most of the targeted technology investments have strong paybacks inside a sort of two-year time horizon. Capacity can be expanded within GF's existing four-walls manufacturing footprint, which management said accelerates tool installation, qualification, ramping and time to revenue.
- Strong Optical Demand VisibilityGF said it is effectively sold out through 2027 for silicon photonics and silicon germanium capacity and increasingly booked out through 2028. Customers are seeking capacity assurance through 2029 and beyond, and many are willing to support investments with their balance sheets.
- Continued Opportunity in Optical IntegrationManagement said the transition from pluggable transceivers to near-package optics and co-packaged optics creates a growing content opportunity through higher photonics and SiGe content, fiber attach, die-to-wafer bonding and other packaging components.
- Indium Phosphide Integration RoadmapGF is focusing on integrating indium phosphide into its technologies, including integrated lasers and semiconductor optical amplifiers for future optical applications. Discrete laser manufacturing is not on the company's current roadmap.
- Automotive Supply-Security PositioningGF said automotive customers are increasingly focused on three-to-five-year supply security and geographic diversification. GF plans to invest in automotive capacity corridors as part of the approximately $4 billion of 2027 net CapEx.
- Satellite Communications OpportunityGF said satellite communications generated about $100 million of revenue in 2025 from a relative standing start in the prior year. Management described satellite communications as an important growth vector for communications and data center, with SiGe supporting high-performance, high-bandwidth satellite links.
MX:GFSN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 16, 2027 | 2026 (Q4) | 11.07- | 10.3 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 9.599.93 | 7.68 | 29.27% (+2.25) | |
| Aug 05, 2026 | 2026 (Q2) | 8.118.61 | 7.87 | 9.52% (+0.75) | |
| May 05, 2026 | 2026 (Q1) | 6.577.49 | 6.37 | 17.65% (+1.12) | |
| Feb 11, 2026 | 2025 (Q4) | 8.9010.30 | 8.61 | 19.57% (+1.69) | |
| Nov 12, 2025 | 2025 (Q3) | 7.127.68 | 7.68 | 0.00% (+0.00) | |
| Aug 05, 2025 | 2025 (Q2) | 6.767.87 | 7.12 | 10.53% (+0.75) | |
| May 06, 2025 | 2025 (Q1) | 5.416.37 | 5.81 | 9.68% (+0.56) | |
| Feb 11, 2025 | 2024 (Q4) | 8.468.61 | 11.99 | -28.13% (-3.37) | |
| Nov 05, 2024 | 2024 (Q3) | 6.207.68 | 10.3 | -25.45% (-2.62) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
