GlobalFoundries Q2 Gross Margin Expands to 28.3% on Mix, Utilization Gains

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GlobalFoundries reported stronger-than-expected second-quarter 2026 results, with gross profit rising 24% to $505 million and IFRS gross margin expanding to 28.3% from 24.2% a year earlier. Non-IFRS gross margin reached 29.9%, up 470 basis points year over year and 90 basis points sequentially, helped by favorable business mix, manufacturing productivity gains and higher utilization. Technology services, which includes IP, licensing, software, reticles and nonrecurring engineering activities, accounted for approximately 11% of second-quarter revenue and is expected to be a strong driver of gross margin in upcoming quarters. Revenue from communications infrastructure and data centers surged 62% year over year, the seventh consecutive quarter of double-digit growth, while high-margin technologies such as silicon photonics and silicon germanium gain momentum. Among competitors, United Microelectronics' gross margin rose to 32.5% in the second quarter of 2026 from 29.2% in the first quarter and 28.7% a year earlier, while Taiwan Semiconductor's gross margin reached 67.7%, up 150 basis points sequentially and 910 basis points from the year-ago quarter. GlobalFoundries shares have gained 44.1% over the past year versus the industry's 34.6% and trade at 19.67 forward earnings against an industry average of 13.53, with its 2026 earnings estimate improving over the past 60 days.

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GlobalFoundries reported stronger-than-expected Q2 2026 results with gross profit up 24% and gross margin expanding to 28.3%.

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