GLOBALFOUNDRIES Inc.

11/04/2026 | Press release | Distributed by Public on 11/04/2026 06:18

Unaudited Interim Condensed Consolidated Financial Statements as of September 30, 2026 and December 31, 2025 and for the three and nine months ended September 30, 2026 and[...]

GLOBALFOUNDRIES Inc.
TABLE OF CONTENTS
- 1 -
GLOBALFOUNDRIES Inc.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As of September 30, 2026 and December 31, 2025
(Unaudited, in millions, except share amounts)
As of
September 30
2026
December 31
2025
ASSETS
Current assets:
Cash and cash equivalents
$
997
$
1,809
Marketable securities
1,258
1,241
Receivables, prepayments and other assets
1,922
1,578
Inventories
1,581
1,577
Total current assets
5,758
6,205
Non-current assets:
Property, plant and equipment, net
6,987
7,223
Marketable securities
957
939
Goodwill and intangible assets, net
1,931
1,368
Right-of-use assets
601
569
Receivables, prepayments and other assets
501
498
Deferred tax assets
161
231
Other non-current financial assets
142
108
Total non-current assets
11,280
10,936
Total assets
$
17,038
$
17,141
LIABILITIES AND EQUITY
Current liabilities:
Trade payables and other current liabilities
$
2,081
$
2,213
Current portion of lease obligations
56
69
Current portion of long-term debt
99
86
Total current liabilities
2,236
2,368
Non-current liabilities:
Non-current portion of long-term debt
1,037
1,065
Other non-current liabilities
896
862
Non-current portion of lease obligations
524
487
Non-current portion of deferred income from government grants
183
202
Provisions
176
174
Total non-current liabilities
2,816
2,790
Total liabilities
$
5,052
$
5,158
Equity:
Share capital
Ordinary shares, $0.02 par value, 557,448,741 and 555,888,455 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
$
11
$
11
Additional paid-in capital
24,337
24,220
Accumulated deficit
(12,516)
(12,381)
Accumulated other comprehensive income
97
78
Equity attributable to the shareholders of GLOBALFOUNDRIES Inc.
11,929
11,928
Non-controlling interests
57
55
Total equity
11,986
11,983
Total liabilities and equity
$
17,038
$
17,141
See accompanying notes to the interim condensed consolidated financial statements
-2-
GLOBALFOUNDRIES Inc.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited, in millions, except per share amounts)
Three Months Ended
September 30
Nine Months Ended
September 30
2026
2025
2026
2025
Net revenue
$
1,899
$
1,688
$
5,319
$
4,961
Cost of revenue
1,328
1,269
3,792
3,779
Gross profit
571
419
1,527
1,182
Research and development expenses
184
124
490
385
Selling, general and administrative expenses and other
157
100
453
255
Operating expenses
341
224
943
640
Income from operations
230
195
584
542
Finance income (expense), net
9
18
33
49
Other income (expense), net
(439)
8
(436)
46
Income (loss) before income taxes
(200)
221
181
637
Income tax (expense) benefit
(70)
28
(180)
51
Net income (loss)
$
(270)
$
249
$
1
$
688
Attributable to:
Shareholders of GLOBALFOUNDRIES Inc.
(271)
248
(2)
686
Non-controlling interests
1
1
3
2
Net income (loss)
$
(270)
$
249
$
1
$
688
Net earnings (loss) per share attributable to the equity holders of the Company:
Basic
$
(0.49)
$
0.45
$
-
$
1.24
Diluted
$
(0.49)
$
0.44
$
-
$
1.23
Weighted average ordinary shares outstanding:
Basic
551
555
552
555
Diluted
551
559
552
557
See accompanying notes to the interim condensed consolidated financial statements
-3-
GLOBALFOUNDRIES Inc.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
for the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited, in millions)
Three Months Ended
September 30
Nine Months Ended
September 30
2026
2025
2026
2025
Net income (loss)
Attributable to:
Shareholders of GLOBALFOUNDRIES Inc.
$
(271)
$
248
$
(2)
$
686
Non-controlling interests
1
1
3
2
Net income (loss)
$
(270)
$
249
$
1
$
688
Other comprehensive income (loss), net of tax:
Items that may be reclassified subsequently to income:
Foreign currency translation adjustment
$
(1)
$
1
$
(5)
$
17
Effective portion of changes in the fair value of cash flow hedges
47
(26)
42
80
Fair value gain (loss) on investments measured at fair value through other comprehensive income (loss)
(8)
1
(19)
2
Total other comprehensive income (loss)
$
38
$
(24)
$
18
$
99
Attributable to:
Shareholders of GLOBALFOUNDRIES Inc.
$
38
$
(24)
$
19
$
95
Non-controlling interests
-
-
(1)
4
Total other comprehensive income (loss)
$
38
$
(24)
$
18
$
99
Total comprehensive income (loss)
$
(232)
$
225
$
19
$
787
Attributable to:
Shareholders of GLOBALFOUNDRIES Inc.
$
(233)
$
224
$
17
$
781
Non-controlling interests
1
1
2
6
Total comprehensive income (loss)
$
(232)
$
225
$
19
$
787
See accompanying notes to the interim condensed consolidated financial statements
-4-
GLOBALFOUNDRIES Inc.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for the Nine Months Ended September 30, 2026 and 2025
(Unaudited, in millions)
Nine Months Ended
September 30
2026
2025
OPERATING ACTIVITIES
Net income
$
1
$
688
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
953
1,001
Issuance of shares to the USG
441
-
Share-based compensation
189
147
Gain on acquisition of joint venture interest
-
(31)
Finance income
(100)
(119)
Finance expense
67
70
Deferred income taxes, net
173
(90)
Gain on disposal of property, plant and equipment
(27)
(108)
Other operating activities
(73)
1
Change in assets and liabilities, net of acquisitions:
Receivables, prepayments and other assets
(109)
72
Inventories
(3)
(8)
Trade and other payables
(271)
(328)
Net change in working capital
(383)
(264)
Interest received
99
111
Interest paid
(35)
(36)
Income taxes paid
(17)
(13)
Net cash provided by operating activities
$
1,288
$
1,357
INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets
(1,024)
(514)
Acquisitions, net of cash acquired
(486)
(231)
Proceeds from government grants
102
50
Proceeds from sale of property, plant and equipment and intangible assets
29
113
Purchases of equity securities
(20)
(65)
Purchases of marketable securities
(1,360)
(1,245)
Proceeds from sale of marketable securities
324
227
Proceeds from maturities of marketable securities
989
918
Other investing activities
21
-
Net cash used in investing activities
$
(1,425)
$
(747)
FINANCING ACTIVITIES
Repurchase of shares
(500)
-
Repayments of debt and lease obligations
(86)
(808)
Cash paid for dividends
(66)
-
Proceeds from issuance of equity instruments, net of taxes paid
(24)
(3)
Net proceeds from borrowings
-
19
Net cash used in financing activities
$
(676)
$
(792)
Effect of exchange rate changes on cash and cash equivalents
1
6
Net increase (decrease) in cash and cash equivalents
$
(812)
$
(176)
Cash and cash equivalents at the beginning of the period
1,809
2,192
Cash and cash equivalents at the end of the period
$
997
$
2,016
See accompanying notes to the interim condensed consolidated financial statements
-5-
GLOBALFOUNDRIES Inc.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
for the Nine Months Ended September 30, 2026 and 2025
(Unaudited, in millions)
Equity Attributable to Shareholders of GLOBALFOUNDRIES Inc.
Ordinary Shares
Additional Paid-In Capital
Accumulated Deficit
Hedging Reserve
Foreign Currency Translation and Investments Reserves
Total
Non-Controlling Interests
Total Equity
Shares
Amount
December 31, 2024
553
$
11
$
24,014
$
(13,266)
$
19
$
(2)
$
10,776
$
48
$
10,824
Issuance of equity instruments, net of withholding taxes
3
-
(3)
-
-
-
(3)
-
(3)
Equity-settled share-based compensation
-
-
11
-
-
-
11
-
11
Share-based compensation
-
-
147
-
-
-
147
-
147
Net income
-
-
-
686
-
-
686
2
688
Other comprehensive income
-
-
-
-
80
15
95
4
99
September 30, 2025
556
$
11
$
24,169
$
(12,580)
$
99
$
13
$
11,712
$
54
$
11,766
December 31, 2025
556
$
11
$
24,220
$
(12,381)
$
65
$
13
$
11,928
$
55
$
11,983
Issuance of equity instruments, net of withholding taxes
3
-
(24)
-
-
-
(24)
-
(24)
Equity-settled share-based compensation
-
-
11
-
-
-
11
-
11
Repurchase of shares
(12)
-
(500)
-
-
-
(500)
-
(500)
Share-based compensation
-
-
189
-
-
-
189
-
189
Issuance of shares to the USG
10
-
441
-
-
-
441
-
441
Dividends declared
-
-
-
(133)
-
-
(133)
-
(133)
Net income (loss)
-
-
-
(2)
-
-
(2)
3
1
Other comprehensive income (loss)
-
-
-
-
42
(23)
19
(1)
18
September 30, 2026
557
$
11
$
24,337
$
(12,516)
$
107
$
(10)
$
11,929
$
57
$
11,986
See accompanying notes to the interim condensed consolidated financial statements
-6-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
Note 1. Corporate Information
Company Operations
GLOBALFOUNDRIES Inc. ("GlobalFoundries") is an exempted company with limited liability incorporated under the laws of the Cayman Islands. The address of GlobalFoundries' registered office is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104 Cayman Islands.
GLOBALFOUNDRIES Inc. ("we," "GF," or the "Company") is one of the world's leading manufacturers of semiconductors the world relies on to live, work and connect, enabling the scaling of Artificial Intelligence ("AI") in the cloud, and the transition of AI into the physical world. We manufacture differentiated, essential integrated circuits ("ICs") that are used in billions of electronic devices across various industries.
Note 2. Basis of Presentation, Summary of Material Accounting Policies and Critical Judgments, Estimates and Assumptions
Statement of Compliance - The interim condensed consolidated financial statements ("interim financial statements") have been prepared in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting ("IAS 34"), as issued by the International Accounting Standards Board ("IASB"). Certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") Accounting Standards, as issued by the IASB, have been omitted or condensed. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in GlobalFoundries' Annual Report on Form 20-F for the year ended December 31, 2025. The interim financial statements have been prepared on a basis consistent with the accounting policies disclosed in the December 31, 2025 audited consolidated financial statements.
The interim financial statements are unaudited and reflect adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods in accordance with IAS 34 as issued by the IASB.
The interim financial statements were approved and authorized to be issued by the Audit, Risk and Compliance Committee of GlobalFoundries' Board of Directors on November 04, 2026, and subsequent events have been evaluated for their potential effect on the interim financial statements through November 04, 2026.
Summary of Material Accounting Policies and Critical Judgments, Estimates and Assumptions - The summary of material accounting policies and critical judgments, estimates and assumptions adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the Company's annual audited consolidated financial statements contained in our Annual Report on Form 20-F for the year ended December 31, 2025.
Recent Accounting Pronouncements, Adopted:
The Company adopted the following amended IFRS standards, effective January 1, 2026.
Classification and Measurement of Financial Instruments (Amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures) - The amendments clarify the requirements for the timing of recognition and derecognition of financial assets and liabilities. The amendments also add further guidance for assessing whether a financial asset meets the solely payments of principal and interest criterion for financial assets that do not relate to basic lending risks, and add new disclosures for certain instruments with contractual terms that can change cash flows based on contingent events. The adoption of these amendments did not result in a material impact to the Company's consolidated financial statements.
Annual Improvements to IFRS Accounting Standards - Volume 11 - These narrow-scope amendments relate to clarifications, simplifications, corrections or changes to improve consistency in the following IFRS standards: IFRS 7, Financial Instruments: Disclosures, IFRS 9, Financial Instruments, IFRS 10, Consolidated Financial Statements and IAS 7, Statement of Cash Flows. The adoption of these amendments did not result in a material impact to the Company's consolidated financial statements.
Contracts Referencing Nature-dependent Electricity - Amendment to IFRS 9 and IFRS 7 - These amendments include clarifying the application of the own-use requirements for nature-dependent electricity contracts, permitting hedge accounting if these contracts are used as hedging instruments and adding new disclosure requirements to enable investors to understand the effect of these contracts on the Company's financial performance and cash flows. The adoption of these standards, including disclosures that will be made when certain plants commence commercial operations, did not result in a material impact to the Company's consolidated financial statements.
-7-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
Recent Accounting Pronouncements, Not Adopted:
The Company has not adopted the following new, revised or amended IFRS standards that have been issued by the IASB that are not yet effective:
IFRS 18, Presentation and Disclosure in Financial Statements ("IFRS 18") - This new standard will replace IAS 1, Presentation of Financial Statements ("IAS 1"). The key concepts in IFRS 18 relate to the structure of the statement of profit and loss, required disclosures in the financial statements for certain management-defined performance measures and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
•IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the statement of profit and loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new.
•It also requires disclosure of management-defined performance measures and subtotals of income and expenses and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements and the notes.
•In addition, narrow-scope amendments have been made to IAS 7, Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from 'profit or loss' to 'operating profit or loss' and removing the optionality around classification of cash flows from dividends and interest. Interest paid will be presented as financing cash flows and interest received as investing cash flows, which is a change from current presentation as part of operating cash flows. In addition, there are consequential amendments to several other standards.
The Company will adopt IFRS 18 effective January 1, 2027. Retrospective application is required, hence, the comparative information will be recast in accordance with IFRS 18. The Company is currently assessing the detailed implications of applying the new standard on the consolidated financial statements.
•Although the adoption of IFRS 18 has no impact on the Company's net income, the Company expects that grouping items of income and expenses into the new categories may impact how operating profit is calculated and reported. For example, items currently in "Other income (expense), net" would be reclassified to "Other operating expenses", "Other investing expenses" and "Other financing expenses" lines.
•The Company does not expect a significant change in the information currently disclosed in the notes to the consolidated financial statements because the requirement to disclose material information remains unchanged. However, the way in which information is grouped may be changed and the new disclosure of management-defined performance measures is required.
•For the first annual period of application of IFRS 18, disclosures are required for a reconciliation for each line item in the consolidated statement of operations between the stated amounts presented by applying IFRS 18 and the amounts previously presented applying IAS 1.
As of the date the accompanying financial statements were authorized for issuance, the Company continues to evaluate the impact on its consolidated financial position and performance as a result of the initial adoption of the aforementioned standards or interpretations and related applicable periods.
Fair Value Option in Measuring Investment in Associate or Joint Venture - Amendments to IAS 28 - These amendments clarify the scope of entities that may elect to measure investments in associates and joint ventures at fair value through profit or loss, rather than applying the equity method. The fair value option is available to entities whose main business activity is investing in particular types of assets. The amendments are effective when IFRS 18 is adopted. The Company does not expect these amendments to have a material impact to the Company's consolidated financial statements.
-8-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
Note 3. Net Revenue
The following table presents the Company's revenue disaggregated based on revenue source, timing of revenue recognition and the end markets that we serve, for the three and nine month periods ended September 30, 2026 and 2025. The Company believes these categories best depict the nature and timing of revenue:
Three Months Ended
September 30
Nine Months Ended
September 30
2026
2025
2026
2025
Type of goods and services:(1)
Manufacturing Services
$
1,679
$
1,491
$
4,689
$
4,410
Technology Services
220
197
630
551
Total
$
1,899
$
1,688
$
5,319
$
4,961
Timing of revenue recognition:
Revenue recognized over time
$
180
$
198
$
497
$
449
Revenue recognized at a point in time
1,719
1,490
4,822
4,512
Total
$
1,899
$
1,688
$
5,319
$
4,961
End Markets:
Smart Mobile Devices
$
611
$
752
$
1,813
$
2,021
Communications Infrastructure & Data Center
316
175
823
521
Home and Industrial IoT
384
258
970
885
Automotive
368
306
1,083
983
Technology Services
220
197
630
551
Total
$
1,899
$
1,688
$
5,319
$
4,961
(1) Effective January 1, 2026, the Company updated the terminology used to describe revenue categories. Revenue previously presented as "Wafer revenue" and "Non-wafer revenue" is now presented as "Manufacturing Services" and "Technology Services," respectively. Manufacturing Services include volume production and sales of finished semiconductor products. Technology Services include non-recurring engineering services, mask production, process qualification, post-fabrication services such as bump, test and packaging, and revenue from intellectual property licenses, related royalties and other items. We believe these categories better reflect the depth and breadth of our business model today. This change in presentation does not impact the composition of revenue, total revenue reported or revenue recognition policies. Prior periods have been conformed to the current period presentation.
Note 4. Business Combination
Acquisition of Synopsys, Inc.'s ("Synopsys") ARC Processor IP Solutions business - On June 1, 2026, the Company completed its acquisition of Synopsys' ARC Processor IP Solutions business and a team of engineers and designers. This strategic acquisition builds on the differentiated capabilities the Company gained through the MIPS acquisition by expanding our RISC-V and custom processor IP portfolio and software tools and accelerates time-to-market for custom silicon solutions.
Details of the purchase consideration:
(in millions)
Amount
Cash
$
440
Contingent consideration
4
Replacement share-based payment awards
11
Total purchase consideration
$
455
The fair value of consideration transferred was determined by the Company with the assistance of an independent appraiser as part of the purchase price allocation. The contingent consideration was settled during the three months ended September 30, 2026.
-9-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
Assets acquired and liabilities assumed at the date of acquisition are as follows:
(in millions)
Fair value
Assets
Current assets
$
5
Other noncurrent assets
20
Developed technology
68
In-process research and development
28
Customer relationships
145
Liabilities
Trade payables and other current liabilities
(19)
Other noncurrent liabilities
(6)
Net identifiable assets acquired
$
241
Add: Goodwill(1)
$
214
Net assets acquired
$
455
(1) Goodwill is mainly attributable to the workforce, synergies, and expected future growth potential from access to new markets. Goodwill recognized is expected to be deductible for income tax purposes.
The fair value of certain identifiable assets and liabilities relating to deferred revenue and deferred tax assets have been determined provisionally and are subject to adjustments as we obtain additional information. Any adjustments to the purchase price allocation will be made as soon as practicable, but no later than one year from the acquisition date.
The valuation of acquired intangible assets consisting of the developed technology, in-process research and development ("IPR&D"), and customer relationships were determined based on management's estimates and consultation with an independent appraiser. The fair value of developed technology and IPR&D were estimated using the relief from royalty method, while the customer relationships were measured at fair value using the multi-period excess earnings method. The valuation of the intangible assets required management to make significant estimates and assumptions, which included the expected revenue growth rates and EBITDA margin, customer attrition rates, royalty rates and discount rates applied to future cash flows.
Acquisition of Advanced Micro Foundry Pte. Ltd. - On November 18, 2025, the Company completed its acquisition of Advanced Micro Foundry Pte. Ltd. ("AMF"). AMF is a pioneering silicon photonics foundry based in Singapore. The acquisition is expected to enhance the Company's scale, differentiation and customer base in silicon photonics and optical networking.
The total purchase consideration was $453 million in cash paid on the closing date. The Company engaged an independent appraiser to assist in determining the fair values of the acquired assets and assumed liabilities as part of the purchase price allocation.
Assets acquired and liabilities assumed at the date of acquisition are as follows:
(in millions)
Fair value
Assets
Current assets
$
87
Other noncurrent assets
36
Developed technology
74
In-process research and development
63
Customer relationships
66
Liabilities
Trade payables and other current liabilities
(17)
Other noncurrent liabilities
(30)
Net identifiable assets acquired
$
279
Add: Goodwill(1)
$
174
Net assets acquired
$
453
(1) Goodwill is mainly attributable to the workforce, synergies, and expected future growth potential from access to new markets. Goodwill recognized will not be deductible for income tax purposes.
-10-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
The fair value of certain identifiable assets and liabilities relating to working capital adjustments and deferred tax liabilities have been determined provisionally and are subject to adjustments as we obtain additional information. Any adjustments to the purchase price allocation will be made as soon as practicable, but no later than one year from the acquisition date.
The valuation of acquired intangible assets consisting of the developed technology, IPR&D and customer relationships were determined based on management's estimates and consultation with an independent appraiser. The fair value of developed technology and IPR&D was estimated using the relief from royalty method, while the customer relationships were measured at fair value using the multiperiod excess earnings method. The valuation of the intangible assets required management to make significant estimates and assumptions, which included the future cash flows, expected revenue growth rates, royalty rates, technology migration curve and discount rate applied to future cash flows.
Acquisition of MIPS Holdings Inc. - On August 13, 2025, the Company completed its acquisition of MIPS Holdings Inc. ("MIPS"). MIPS is a leading provider of computing subsystems for autonomous platforms serving the automotive, industrial, and embedded markets. The acquisition is expected to expand the Company's portfolio of customizable intellectual property ("IP") offerings and enhance the Company's ability to differentiate its process technologies through advanced IP and software capabilities.
Details of the purchase consideration:
(in millions)
Amount
Cash
$
215
Replacement share-based payment awards
11
Total purchase consideration
$
226
The fair value of consideration transferred was determined by the Company with the assistance of an independent appraiser as part of the purchase price allocation.
Assets acquired and liabilities assumed at the date of acquisition are as follows:
(in millions)
Fair value
Assets
Current assets
$
13
Other noncurrent assets
13
Developed technology
39
In-process research and development
44
Customer relationships
49
Liabilities
Trade payables and other current liabilities
(20)
Other noncurrent liabilities
(11)
Net identifiable assets acquired
$
127
Add: Goodwill(1)
$
99
Net assets acquired
$
226
(1) Goodwill is mainly attributable to the workforce, synergies, and expected future growth potential from access to new markets. Goodwill recognized will not be deductible for income tax purposes. The Company recorded tax remeasurement adjustments of $8 million against goodwill during the measurement period, which ended on August 13, 2026.
The Company finalized the acquisition date fair values of the assets acquired and liabilities assumed. The final valuations were not materially different from the provisional amounts previously reported.
-11-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
The valuation of acquired intangible assets consisting of the developed technology, IPR&D and customer relationships were determined based on management's estimates and consultation with an independent appraiser. The fair value of the developed technology and the IPR&D was estimated using the relief from royalty method, while the customer relationships were fair valued using the multiperiod excess earnings method. The valuation of the intangible assets required management to make significant estimates and assumptions, which included the future cash flows, expected revenue growth rates, royalty rates, technology migration curve and discount rate applied to future cash flows.
Other business combinations - Silicon Manufacturing Partners Pte Ltd ("SMP") was a joint venture between Avago Technologies International Sales Pte. Limited ("Avago Singapore") and GLOBALFOUNDRIES Singapore Pte. Ltd. ("GlobalFoundries Singapore"). As of December 31, 2024, we held a 49% interest in SMP and managed all aspects of its manufacturing operations. On January 2, 2025, we acquired the remaining 51% of the shares in the share capital of SMP from Avago Singapore, thereby making SMP a wholly-owned subsidiary of GlobalFoundries. Total purchase price consideration of $64 million was allocated to the fair values of net assets acquired and resulted in the recognition of $37 million goodwill and the derecognition of the existing investment in the joint venture.
On November 14, 2025, the Company completed its acquisition of InfiniLink Inc. ("InfiniLink") for $48 million. InfiniLink specializes in advanced optical data connectivity chips intended for hyper-scale data centers and enterprises. The acquisition is expected to enhance the Company's in-house design capabilities and further strengthen competitiveness in optics. We recognized goodwill, other intangible assets and deferred tax liabilities of $29 million, $30 million and $11 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed.
Note 5. Income taxes
For tax reporting purposes, the Company consolidates its entities under GLOBALFOUNDRIES Inc., a Cayman Islands entity. As a Cayman Islands entity, the Company's domestic statutory income tax rate is 0.0%. The difference between the Company's domestic statutory income tax rate and its effective income tax rate reflected in income tax benefit or income tax expense is primarily due to the effect of tax rates and permanent differences in other jurisdictions in which the Company operates. Applicable to tax years beginning in 2025, the Company's effective tax rate is not currently materially impacted by Pillar Two minimum top-up taxes but may be in the future.
The effective tax rate was (35.0)% and (12.7)% for the three months ended September 30, 2026 and 2025, respectively, and was 99.4% and (8.0)% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in the effective tax rate for the three months ended September 30, 2026 compared with the prior-year period was primarily attributable to the equity issuance to the USG, which contributed to the pre-tax loss without a corresponding tax benefit, and tax expense related to exchange rate changes affecting the tax basis of certain non-monetary assets in Germany.
The increase in the effective tax rate for the nine months ended September 30, 2026 compared with the prior-year period primarily reflected the equity issuance to the USG, which reduced pre-tax income without a corresponding tax benefit, tax expense related to exchange rate changes affecting the tax basis of certain non-monetary assets in Germany, and the absence of a prior-year tax benefit related to the recognition of net deferred tax assets in Germany.
Note 6. Earnings Per Share
Basic earnings per share ("EPS") is based upon the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is based upon the weighted average number of ordinary shares outstanding during the period, assuming the issuance of ordinary shares for all potentially dilutive ordinary shares outstanding.
-12-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
The following table sets forth the computation of basic and diluted EPS:
Three Months Ended
September 30
Nine Months Ended
September 30
2026
2025
2026
2025
Numerator
Net income (loss) attributable to equity shareholders of the Company
$
(271)
$
248
$
(2)
$
686
Denominator
Basic weighted average ordinary shares outstanding
551
555
552
555
Effect of potentially dilutive shares from employee equity plans
-
4
-
2
Diluted weighted average ordinary shares outstanding
551
559
552
557
Total basic and diluted EPS attributable to equity shareholders:
Basic
$
(0.49)
$
0.45
$
-
$
1.24
Diluted
$
(0.49)
$
0.44
$
-
$
1.23
For the three and nine months ended September 30, 2026, 7 million potentially dilutive shares from employee equity plans were excluded from the calculation of diluted EPS as their inclusion would have been anti-dilutive.
-13-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
Note 7. Property, Plant and Equipment
Land and
Land
Improvements
Buildings and
Leasehold
Improvements
Equipment
Computers
Construction
in Progress
Total
Cost
As of December 31, 2025
$
92
$
7,797
$
24,387
$
465
$
480
$
33,221
Additions
-
-
6
1
537
544
Acquisitions and other
-
-
1
1
-
2
Transfers from construction in progress
-
87
198
1
(286)
-
Disposals
-
(2)
(223)
(2)
-
(227)
Effect of exchange rate changes
-
(2)
(14)
-
-
(16)
As of September 30, 2026
$
92
$
7,880
$
24,355
$
466
$
731
$
33,524
Accumulated Depreciation
As of December 31, 2025
$
32
$
5,256
$
20,261
$
439
$
10
$
25,998
Additions
1
175
590
10
-
776
Disposals
-
(2)
(221)
(2)
-
(225)
Effect of exchange rate changes
-
(1)
(11)
-
-
(12)
As of September 30, 2026
$
33
$
5,428
$
20,619
$
447
$
10
$
26,537
Net book value as of September 30, 2026
$
59
$
2,452
$
3,736
$
19
$
721
$
6,987
For the three months ended September 30, 2026 and 2025, depreciation expense of property, plant and equipment was $269 million and $267 million, respectively. For the nine months ended September 30, 2026 and 2025, depreciation expense was $776 million and $869 million, respectively.
Capital expenditures associated with government grants receivable were $193 million for the nine months ended September 30, 2026.
-14-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
Note 8. Receivables, Prepayments and Other Assets
September 30, 2026
December 31, 2025
Current:
Trade receivables, other than related parties
$
995
$
1,041
Unbilled accounts receivable(1)
124
63
Receivables from government grants
350
167
Other
453
307
Total
$
1,922
$
1,578
Non-current:
Unbilled accounts receivable(1)
$
12
$
18
Advances to suppliers
167
173
Receivables from government grants
183
100
Equity investments
124
101
Other
15
106
Total
$
501
$
498
(1) Unbilled accounts receivable represents amounts recognized on revenue contracts less associated advances and progress billings. These amounts will be billed in accordance with the agreed-upon contractual terms or rendering services.
The following table summarizes the activity in the Company's unbilled accounts receivable for the nine months ended September 30, 2026 and for the twelve months ended December 31, 2025, respectively:
September 30, 2026
December 31, 2025
Balance, beginning of period
$
81
$
38
Revenue recognized during the period
194
177
Amounts invoiced
(144)
(135)
Other
5
1
Balance, end of period
$
136
$
81
Note 9. Inventories
Inventories consist of the following:
September 30, 2026
December 31, 2025
Work in progress and others
$
1,123
$
1,018
Raw materials and supplies
592
649
Inventory reserves
(134)
(90)
Total
$
1,581
$
1,577
For the three months ended September 30, 2026 and 2025, the Company recognized $24 million and $19 million, respectively, within cost of revenue to write down certain inventories to their estimated net realizable value.
For the nine months ended September 30, 2026 and 2025, the Company recognized $98 million and $41 million, respectively, within cost of revenue to write down certain inventories to their estimated net realizable value.
There were no significant reversals of any write-down of inventories.
Note 10. Leases
The Company has various lease agreements for certain of its offices, facilities and equipment, with a weighted average remaining lease term of 13.2 years and weighted average discount rate of 4.4% as of September 30, 2026. Leases may include one or more options to renew. Renewal terms are not included in the determination of the lease term unless the renewals are deemed to be reasonably certain at the time of lease commencement. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. All leases were measured under a single criterion with the exception of those with terms not exceeding 12 months and low-value leases.
-15-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
The following table outlines the carrying amounts of right-of-use assets:
September 30, 2026
December 31, 2025
Land and improvements
$
60
$
60
Buildings, leasehold improvements and equipment
541
509
Total
$
601
$
569
The following table summarizes the depreciation of right-of-use assets:
Three Months Ended September 30
Nine Months Ended September 30
2026
2025
2026
2025
Land and improvements
$
1
$
1
$
3
$
3
Buildings, leasehold improvements and equipment
15
11
43
34
Total
$
16
$
12
$
46
$
37
For the three months ended September 30, 2026 and 2025, additions to right-of-use assets were $41 million and $5 million, respectively. For the nine months ended September 30, 2026 and 2025, additions to right-of-use assets were $78 million and $27 million, respectively.
For the three months ended September 30, 2026 and 2025, interest expense was $7 million and $6 million, respectively. For the nine months ended September 30, 2026 and 2025, interest expense was $20 million and $17 million, respectively.
For the nine months ended September 30, 2026 and 2025, cash outflow for leases was $52 million and $80 million, respectively.
Note 11. Trade Payables and Other Liabilities
September 30, 2026
December 31, 2025
Current:
Trade payables
$
386
$
491
Accrued expenses
579
452
Contract liabilities(1)
467
718
Advances and deposits
157
44
Payables for property, plant and equipment and intangible assets
271
335
Other(2)
221
173
Total
$
2,081
$
2,213
Non-current:
Payables for intangible assets
152
150
Contract liabilities(1)
419
512
Deferred tax liabilities
225
116
Other(2)
100
84
Total
$
896
$
862
(1)Contract liabilities comprise contractual obligations for payments received in advance of the satisfaction of performance obligations for wafers, as well as NRE services.
(2)Other includes other financial liabilities, current portion of deferred income from government grants and non-current advances and deposits.
-16-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions, except per share amounts or otherwise indicated)
The following table summarizes the activities in contract liabilities for the nine months ended September 30, 2026 and for the twelve months ended December 31, 2025
September 30, 2026
December 31, 2025
Beginning contract liabilities balance
$
1,230
$
1,584
Cash receipts in advance of satisfaction of performance obligations
218
782
Released to the consolidated statements of operations
(581)
(1,124)
Other
19
(12)
Ending contract liabilities balance
$
886
$
1,230
Current
$
467
$
718
Non-current
419
512
Total
$
886
$
1,230
Note 12. Long Term Debt
The following table outlines the terms and carrying amounts of the Company's debt:
Description
Currency
Nominal Interest Rate
Interest Payment Terms
Principal Payment Terms
Year
of Maturity
September 30
2026
December 31
2025
2021 SGD EDB Loan
SGD
1.40%
Semi-Annual
Semi-Annual
2041
64
24
Various
EUR, USD
Various
2026-2032
35
62
Current total
$
99
$
86
2021 SGD EDB Loan
SGD
1.40%
Semi-Annual
Semi-Annual
2041
1,002
1,023
Various
EUR, USD
Various
2032
35
42
Non-current total
$
1,037
$
1,065
Total
$
1,136
$
1,151
Revolving and Letter of Credit Facilities Agreement - On August 21, 2026, the Company entered into a five-year senior unsecured revolving credit facility in an aggregate commitment amount of $1.5 billion and terminated its previous revolving credit facility of $1.0 billion.
The following table summarizes unutilized credit facilities available to the Company to maintain liquidity to fund operations:
September 30, 2026
December 31, 2025
Committed Credit Facilities
$
1,511
$
1,011
Uncommitted Credit Facilities(1)
105
105
Total
$
1,616
$
1,116
(1) Credit facility made available to the Company, but the lender is not obligated to loan funds.
Assets pledged as security - Certain property, plant and equipment with a carrying amount of $2.2 billion have been pledged to secure borrowings under pledged agreements for the Company. The Company is not allowed to pledge these assets as security for other borrowings or to sell them outside normal course of business.
Note 13. Commitments and Contingencies
Commitments - The Company enters into several purchase agreements and supplementary agreements with its third-party manufacturers and suppliers for future deliveries of equipment and components. In addition, the Company enters into intellectual property and licensing agreements with third parties. The total future payments under these agreements amounted to $1,922 million as of September 30, 2026. Purchase commitments of $1,718 million are due within the next 12 months.
-17-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions except for per share amount and otherwise stated)
Additionally, the Company obtained letters of credit and bank guarantees to guarantee payments for utility suppliers, foreign statutory payroll related charges, and other purposes. The Company has obtained total facilities of $133 million and $132 million as of September 30, 2026 and December 31, 2025, respectively.
Contingencies - From time to time, the Company is a party to claims that arise in the normal course of business. These claims include allegations of infringement of intellectual property rights of others as well as other claims of liability. In addition, the Company, on a case by case basis, includes intellectual property indemnification provisions in the terms of sale and technology licenses with third parties. The Company is also subject to various taxes in the different jurisdictions in which it operates. These include property, goods and services, and other non-income taxes. The Company accrues costs associated with these matters when they become probable and reasonably estimable. The Company does not believe it is probable that losses associated with these matters beyond those already recognized will be incurred in amounts that would be material to the interim financial statements.
The Company has determined that due to the complexity of calculation of the Advanced Manufacturing Investment Tax Credit ("AMITC") under the Internal Revenue Code Section 48D, and uncertainties regarding compliance with program conditions, it is probable that a portion of AMITC computed and claimed in the United States may be repayable. Management recorded its best estimate of the amount of the AMITC that may be repayable totaling $68 million as of September 30, 2026 which is included in other non-current liabilities on the Company's consolidated statements of financial position. The amount of the reserve may change depending on future assessments by tax authorities.
Note 14. Fair Value Measurements
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
•Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices in active markets in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for similar assets or liabilities that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
•Level 3: Unobservable inputs for which little or no market data exists, therefore requiring management judgment to develop the Company's own models with estimates and assumptions.
Cash Equivalents - Cash equivalents include investments in government obligation-based money market funds, other money market instruments and interest-bearing deposits with initial or remaining terms of three months or less. The fair value of cash equivalents approximates its carrying value due to the short-term nature of these instruments.
Marketable Securities - Marketable securities utilizing Level 1 and Level 2 inputs include U.S. Treasury Securities, U.S. Government Sponsored Enterprises, floating rate securities, money market mutual funds, corporate debt instruments and other notes, bonds or debt securities issued by non-U.S. sovereign or multilateral entities, as these securities all have quoted prices in active markets.
Derivatives - Derivative contracts are classified within Level 2. The fair values of these contracts are determined using observable market inputs, including exchange rates, interest rates, commodity prices and maturity dates to generate pricing curves, which are used to value the positions. The market inputs are generally actively quoted and can be validated through external sources. For derivative positions with maturity dates which fall between the dates of quoted prices, interpolation of rate or maturity scenarios are used in determining fair values.
Equity Securities - Equity securities consist of non-marketable investments in private companies. As quoted market prices are not available, the fair value of these investments is determined using valuation techniques that incorporate significant unobservable inputs and accordingly, they are classified within Level 3 of the fair value hierarchy. These equity securities are measured through profit or loss, with changes in fair value recognized in earnings in the period in which they arise.
-18-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions except for per share amount and otherwise stated)
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis:
Quoted Prices Identical Assets / Liabilities
Significant Other Inputs
Significant Unobservable Inputs
Total
(Level 1)
(Level 2)
(Level 3)
December 31, 2025
Assets:
Cash equivalents(1)
$
1,331
$
1,331
$
-
$
-
Investments in marketable securities (2)
$
2,180
$
565
$
1,615
$
-
Derivatives(3)
$
161
$
-
$
161
$
-
Investments in equity securities(4)
$
101
$
-
$
-
$
101
Liabilities:
Derivatives(3)
$
37
$
-
$
37
$
-
September 30, 2026
Assets:
Cash equivalents(1)
$
591
$
591
$
-
$
-
Investments in marketable securities(2)
$
2,215
$
557
$
1,658
$
-
Derivatives(3)
$
213
$
-
$
213
$
-
Investments in equity securities(4)
$
124
$
-
$
-
$
124
Liabilities:
Derivatives(3)
$
31
$
-
$
31
$
-
(1) Included in cash and cash equivalents on the Company's interim condensed consolidated statements of financial position.
(2) Consists of investments in marketable debt securities such as government, agency, and corporate bonds. Included in current and non-current marketable securities on the Company's interim condensed consolidated statements of financial position.
(3) Consists of foreign currency forward contracts, interest rate swaps, cross currency swaps and commodity swaps.
(4) Included in current and non-current receivables, prepayments and other assets on the Company's interim condensed consolidated statements of financial position
During the nine months ended September 30, 2026 and 2025, there were no transfers between Level 1, Level 2 or Level 3 fair value measurements.
Assets Measured and Recorded at Fair Value on a Non-Recurring Basis
Certain assets such as intangible assets and property, plant and equipment, and other non-financial assets, are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period.
Financial Instruments Not Recorded at Fair Value on a Recurring Basis
Financial instruments not recorded at fair value on a recurring basis include grants receivable, loans receivable, lease obligations and the current and non-current portions of the Company's long-term debt which are measured at amortized cost.
The following shows the carrying amounts and fair values of the Company's financial liabilities at amortized cost ("FLAC") not recorded at fair value on a recurring basis. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
September 30, 2026
December 31, 2025
Financial Liabilities
Carrying Amount
Fair Value
Carrying Amount
Fair Value
Other long-term debt
1,136
918
1,151
1,156
-19-
GLOBALFOUNDRIES Inc.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited, in millions except for per share amount and otherwise stated)
Estimated fair values of long-term debt are based on quoted prices for similar liabilities for which significant inputs are observable and represent a Level 2 valuation. The fair values are estimated based on the type of loan and maturity. The Company estimates the fair value using market interest rates for debts with similar maturities.
Note 15. Equity
Share Repurchase Authorization
On February 11, 2026, the Company announced that its Board of Directors approved a share repurchase authorization of up to $500 million of its ordinary shares. Under the repurchase authorization, GF may purchase its ordinary shares on a discretionary basis from time to time through open market repurchases, in privately negotiated transactions, through purchases made in compliance with Rule 10b-18 and/or Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or other means. The actual timing and amount of any share repurchases remains subject to a variety of factors, including share price, trading volume, market conditions, compliance with applicable legal requirements, and other general business considerations. The authorization does not require GF to repurchase any specific number of ordinary shares. The authorization is valid for an initial period of 12 months and may be modified, suspended or terminated at any time.
On March 13, 2026 the Company repurchased 7.3 million ordinary shares from Mubadala Technology Investment Company ("MTIC"), a majority shareholder, at the price of $40.85 per share, for an aggregate purchase amount of $300 million under our share repurchase authorization.
During the three and nine months ended September 30, 2026, the Company repurchased an additional 1.9 million ordinary shares for $100 million for a weighted average price of $52.07 and 4.2 million ordinary shares for $200 million for a weighted average price of $47.62, respectively, in open market transactions. In total, during the nine months ended September 30, 2026, the Company repurchased 11.5 million ordinary shares for an aggregate purchase price of $500 million, at a weighted average price of $43.31 per share.
As of September 30, 2026, there was no remaining amount available for share repurchases under our share repurchase authorization.
Securities Issuance Agreement
On September 3, 2026, the Company entered into a Securities Issuance Agreement (the "Agreement") with the USG. Pursuant to the Agreement, the Company agreed to issue to the USG 9.9 million ordinary shares (the "Shares"), par value of $0.02 per share. The Shares are subject to certain transfer and voting restrictions.
The Shares were measured at fair value on the issuance date in accordance with IFRS 2, Share-based Payment. The fair value was determined using the Company's closing stock price of $44.53 per share on September 3, 2026. Accordingly, $441 million was recognized as expense within the "Other income/expense" line in the consolidated statements of operations.
-20-
GLOBALFOUNDRIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GLOBALFOUNDRIES Inc. published this content on November 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 04, 2026 at 12:23 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]