Revenue and non-IFRS metrics are improving, but IFRS earnings declined sharply due to acquisition-related expense growth. Watch Q3 guidance execution and cash flow trajectory; heavy capex (-$411M) is draining cash. The CHIPS grants and quantum initiative add long-term optionality but no near-term revenue.
Price Chart
Executive Summary
GlobalFoundries reports Q2 2026 revenue of $1.786B (+6% YoY), beating guidance, but IFRS net income declined 27% YoY to $167M as R&D and SG&A expenses surged from acquisitions. Non-IFRS EPS grew 10% to $0.46, and Q3 guidance calls for $1.885B revenue and Non-IFRS EPS of $0.51, aided by CHIPS awards and strategic acquisitions in silicon photonics and RISC-V.
Key Facts
- Q2 2026 revenue $1.786B, up 6% YoY from $1.688B, exceeding guidance high end
- IFRS net income $167M, down 27% YoY from $228M; IFRS diluted EPS $0.30 vs $0.41
- Non-IFRS net income $256M, up 9% YoY; Non-IFRS diluted EPS $0.46, up 10% YoY
- Gross margin expanded 410bps YoY to 28.3%; Non-IFRS gross margin 29.9%
- Q3 2026 guidance: revenue ~$1.885B, Non-IFRS diluted EPS ~$0.51, IFRS diluted EPS ~$0.37
- Completed acquisitions of Synopsys ARC Processor IP Solutions and Photeon IVR business
- LOI for $300M U.S. CHIPS award for silicon photonics; expected $375M grant for quantum computing
- First-ever quarterly dividend of $0.12/share paid in July; another $0.12 declared for October
- Operating cash flow $405M; Non-IFRS adjusted free cash flow -$3M (negative) vs +$277M a year ago
Financial Impact
Revenue beat vs guidance (high end $1.77B?) — exact guidance range not disclosed, but CEO states revenue exceeded high end. Non-IFRS EPS beat likely modest. Net income decline of 61M or 27% is material.
Risk Factors
- IFRS net income decline 27% YoY may spook earnings-focused investors
- R&D and SG&A spending up 56% YoY ($331M vs $212M) diluting operating margins
- Negative free cash flow (-$3M) vs +$277M a year ago signals heavy investment phase
- Integration risks from multiple recent acquisitions (Synopsys ARC, Photeon)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001709048-26-000218 |
| Document: form6-kshellxearningsrelea.htm | 0001709048-26-000218 |
| Document: 0001709048-26-000218-index-headers.html | 0001709048-26-000218 |
| Document: 0001709048-26-000218-index.html | 0001709048-26-000218 |
| Document: 0001709048-26-000218.txt | 0001709048-26-000218 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 5w ago | Insider Cluster | $45.95 $48.57 | ▲ +5.70% | ▲ +5.69% | $50.17 (+9.18%) |
Aug 20, 2026 6w ago | Insider Cluster | $47.33 $45.84 | ▼ −3.15% | ▼ −3.15% | $50.17 (+6.00%) |
Aug 5, 2026 8w ago | 6-K | $49.46 $43.97 | ▼ −11.10% | ▼ −10.50% | $50.17 (+1.44%) |
Aug 5, 2026 8w ago | 6-K | $49.46 $43.97 | ▼ −11.10% | ▼ −10.50% | $50.17 (+1.44%) |
Jul 27, 2026 9w ago | Insider Cluster | $53.18 $45.95 | ▼ −13.60% | ▼ −16.89% | $50.17 (−5.66%) |
Jul 24, 2026 10w ago | Insider Cluster | $53.53 $48.05 | ▼ −10.24% | ▼ −13.86% | $50.17 (−6.28%) |
Jul 22, 2026 10w ago | Insider Cluster | $58.49 $48.58 | ▼ −16.94% | ▼ −19.84% | $50.17 (−14.22%) |
Jul 20, 2026 10w ago | 144 | $56.81 $53.44 | ▼ −5.93% | ▼ −10.05% | $50.17 (−11.69%) |
Jul 10, 2026 12w ago | Insider Cluster | $68.97 $53.93 | ▼ −21.81% | ▼ −24.23% | $50.17 (−27.26%) |
Jun 29, 2026 13w ago | Insider Cluster | $82.41 $53.18 | ▼ −35.47% | ▼ −34.44% | $50.17 (−39.12%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access