Revenue rebounded 8.4% sequentially to $1.8B in Q2 2026, but YoY growth was only 0.6%, while gross margin expanded to 28.3% from 24.2% a year earlier, though operating margin remains cyclical at 9.7%.
GLOBALFOUNDRIES Inc. (GFS) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 6.94B | 6.79B | 6.75B | 7.39B | 8.11B | 6.58B | 4.85B | 5.81B |
| Revenue Growth % | 1.4% | 0.61% | -8.69% | -8.83% | 23.13% | 35.75% | -16.55% | - |
| Cost of Goods Sold | 5.04B | 5.08B | 5.1B | 5.29B | 5.87B | 5.57B | 5.56B | 6.35B |
| COGS % of Revenue | - | 74.82% | 75.54% | 71.58% | 72.39% | 84.62% | 114.68% | 109.16% |
| Gross Profit | 1.9B | 1.71B | 1.65B | 2.1B | 2.24B | 1.01B | -712M | -532.24M |
| Gross Margin % | 27.43% | 25.18% | 24.46% | 28.42% | 27.61% | 15.38% | -14.68% | -9.16% |
| Gross Profit Growth % | - | 3.57% | -21.42% | -6.16% | 121.03% | 242.28% | -33.77% | - |
| Operating Expenses | 1.1B | 913M | 1.86B | 972M | 1.07B | 1.07B | 944M | 1.09B |
| OpEx % of Revenue | - | 13.44% | 27.63% | 13.15% | 13.22% | 16.29% | 19.46% | 18.8% |
| Selling, General & Admin | 503M | 362M | 401M | 448M | 451M | 546M | 330M | 358.94M |
| SG&A % of Revenue | - | 5.33% | 5.94% | 6.06% | 5.56% | 8.29% | 6.8% | 6.17% |
| Research & Development | 563M | 518M | 496M | 428M | 482M | 478M | 476M | 582.97M |
| R&D % of Revenue | - | 7.63% | 7.35% | 5.79% | 5.94% | 7.26% | 9.81% | 10.03% |
| Other Operating Expenses | 1000K | 33M | 968M | 96M | 139M | 49M | 138M | 150.64M |
| Operating Income | 804M | 797M | -214M | 1.13B | 1.17B | -60M | -1.66B | -1.62B |
| Operating Margin % | 11.59% | 11.74% | -3.17% | 15.27% | 14.39% | -0.91% | -34.14% | -27.95% |
| Operating Income Growth % | - | 472.43% | -118.95% | -3.26% | 2045% | 96.38% | -1.92% | - |
| EBITDA | 2.07B | 2.11B | 1.35B | 2.58B | 2.79B | 1.56B | 866M | 1.05B |
| EBITDA Margin % | 29.89% | 31.09% | 20.06% | 34.9% | 34.41% | 23.66% | 17.85% | 18.12% |
| EBITDA Growth % | 69.03% | 55.91% | -47.52% | -7.53% | 79.08% | 79.91% | -17.79% | - |
| D&A (Non-Cash Add-back) | 1.27B | 1.31B | 1.57B | 1.45B | 1.62B | 1.62B | 2.52B | 2.68B |
| EBIT | 854M | 911M | -64M | 1.19B | 1.62B | -77M | -1.23B | -944.35M |
| Net Interest Income | 59M | 66M | 56M | 12M | -66M | -108M | -151.29M | -218.8M |
| Interest Income | 59M | 66M | 201M | 149M | 51M | 5.7M | 3.1M | 11.38M |
| Interest Expense | 0 | 0 | 145M | 137M | 117M | 113.7M | 154.39M | 230.18M |
| Other Income/Expense | 72M | 114M | 44M | -45M | 365M | -116M | 291M | 477.67M |
| Pretax Income | 876M | 911M | -170M | 1.08B | 1.53B | -176M | -1.36B | -1.15B |
| Pretax Margin % | 12.63% | 13.41% | -2.52% | 14.66% | 18.89% | -2.67% | -28.14% | -19.73% |
| Income Tax | 156M | 23M | 92M | 66M | 86M | 78M | -12M | 224.06M |
| Effective Tax Rate % | 17.81% | 2.52% | -54.12% | 6.09% | 5.61% | -44.32% | 0.88% | -19.53% |
| Net Income | 716M | 885M | -265M | 1.02B | 1.45B | -250M | -1.35B | -1.37B |
| Net Margin % | 10.32% | 13.03% | -3.93% | 13.8% | 17.86% | -3.8% | -27.83% | -23.59% |
| Net Income Growth % | 722.61% | 433.96% | -125.98% | -29.56% | 679.2% | 81.48% | 1.55% | - |
| Net Income (Continuing) | 720M | 888M | -262M | 1.02B | 1.45B | -254M | -1.35B | -1.37B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 56M | 55M | 48M | 47M | 47M | 58M | 65.13M | 0 |
| EPS (Diluted) | 1.29 | 1.59 | -0.48 | 1.83 | 2.62 | -0.49 | -2.54 | -2.66 |
| EPS Growth % | 709.52% | 431.25% | -126.23% | -30.15% | 634.69% | 80.71% | 4.51% | - |
| EPS (Basic) | - | 1.59 | -0.48 | 1.85 | 2.69 | -0.49 | -2.54 | -2.66 |
| Diluted Shares Outstanding | 556M | 558M | 553M | 556M | 552M | 505.76M | 531.85M | 515.92M |
| Basic Shares Outstanding | 549M | 556.6M | 553M | 552M | 539M | 505.76M | 531.85M | 515.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying GFS stock.
For fiscal year 2025, GLOBALFOUNDRIES Inc. (GFS) reported total revenue of $6.79B. This represents a 16.8% increase compared to $5.81B in 2019.
GLOBALFOUNDRIES Inc. (GFS) is profitable, generating $885.0M in net income for the fiscal year ending 2025 with a net profit margin of 13.0%.
GLOBALFOUNDRIES Inc. (GFS) reported an operating income of $797.0M, resulting in an operating profit margin of 11.7%. This margin reflects the operational efficiency of the business before interest and taxes.
GLOBALFOUNDRIES Inc. (GFS) generated $1.71B in gross profit for the year, representing a gross profit margin of 25.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
ICFR weakness and utilization risk
Sequential Rebound Amid Tepid Growth
GFS's latest quarter revenue of $1.8B rose 8.4% sequentially, but year-over-year growth was only 0.6%, indicating a mixed demand environment. According to recent financial disclosures, automotive strength drove the uptick.
The sequential acceleration in Q2 2026, driven by higher wafer shipments and automotive revenue, suggests a cyclical recovery in certain end-markets. However, the near-flat YoY growth implies that overall demand remains subdued, likely due to ongoing inventory corrections in mobile and PC segments. Investors should monitor whether this sequential momentum can translate into sustained year-over-year expansion, especially given the mixed signals from LTA renegotiations.
Gross Margin Recovery Hinges on Mix
Gross margin improved to 28.3% in Q2 2026 from 24.2% a year earlier, per company filings, but remains below UMC's 29.0%, reflecting GFS's specialty-node focus and pricing dynamics.
The sequential gross margin expansion from 27.6% to 28.3% indicates better factory utilization and a favorable product mix, particularly in automotive and industrial IoT. However, the structural ceiling for gross margins appears constrained by the mature-node competitive landscape, where pricing power is limited relative to leading-edge foundries. The reported 25.2% full-year gross margin for 2025 underscores the challenge of achieving sustainable margin expansion without a significant shift toward higher-complexity products.
Operating Leverage Shows Cyclicality
Operating margin swung from -38.3% in Q4 2024 to 13.9% in Q4 2025, as per income statement data, highlighting the high fixed-cost structure and sensitivity to utilization.
The dramatic recovery in operating margin from the loss-making quarter to 13.9% demonstrates the powerful operating leverage inherent in the fab model. However, the subsequent decline to 9.7% in Q2 2026, despite higher revenue, suggests that SG&A and R&D expenses are not scaling proportionally, possibly due to increased investments in capacity expansion and ICFR remediation. This volatility underscores the importance of wafer utilization rates; even modest dips can compress margins significantly.
Earnings Quality Tempered by SBC and Tax
Net income in Q2 2026 of $166M includes $68M in stock-based compensation, per financial statements, and the effective tax rate appears volatile, affecting EPS comparability.
The gap between operating income of $174M and net income of $166M is narrow, but SBC of $68M represents a significant non-cash charge that reduces reported earnings quality. Additionally, the tax rate appears inconsistent, with Q3 2025 net income of $248M exceeding operating income of $195M, likely due to one-time tax benefits. Investors should adjust for these items to assess underlying profitability, as the reported EPS may overstate cash-generative earnings.
R&D and SG&A Discipline Under Scrutiny
R&D spending rose to $174M in Q2 2026 from $121M a year earlier, per income statement data, while SG&A jumped to $157M from zero in prior quarters, signaling increased overhead.
The sharp increase in R&D and SG&A expenses in Q2 2026, particularly the reappearance of SG&A after being reported as zero in several prior quarters, suggests either a change in classification or a deliberate investment in growth initiatives. The R&D intensity of 9.7% of revenue is consistent with the need to maintain specialty process technology competitiveness. However, the elevated SG&A could pressure operating margins if revenue growth stalls, warranting close monitoring of expense discipline.
What Could Undermine the Recovery
Despite sequential revenue growth, the 0.6% YoY increase and material weakness in ICFR, as disclosed in recent filings, raise concerns about the sustainability of the rebound and reporting reliability.
Short-sellers might argue that the sequential revenue improvement is a temporary bounce, given the overall flat growth profile and ongoing inventory corrections in key end-markets. The reported material weakness in internal controls over financial reporting as of December 31, 2025, introduces a risk of future restatements or errors, which could undermine investor confidence. Additionally, the reliance on underutilization payments from LTAs may inflate revenue quality, and any renegotiation could expose the fragility of the backlog.