Chipmaker topped fiscal second-quarter estimates on AI-linked data center demand, but shares fell as third-quarter guidance was broadly in line with Wall Street expectations.
GlobalFoundries shares fell 3.96% to $49.96 on Wednesday even after the contract chipmaker beat fiscal second-quarter 2026 estimates, as its third-quarter guidance came in broadly around Wall Street forecasts. Revenue rose 6% year over year to $1.79 billion, or $1.786 billion, and adjusted earnings reached 46 cents a share, while GAAP earnings per share were $0.30. Communications infrastructure and data center sales jumped 62% to $277 million on demand tied to optical networking and silicon photonics for AI data centers. The company shipped 625,000 300mm wafers, reported adjusted gross margin of 29.9% and gross margin of 28.3%, held $3.3 billion in cash, equivalents, and marketable securities as of June 30, 2026, and outlined AI and quantum expansion moves including proposed U.S. Commerce Department support, acquisitions tied to power delivery and RISC-V, and a new quantum initiative. For the third quarter, GlobalFoundries forecast $1.86 billion to $1.91 billion in revenue and 46 cents to 56 cents in adjusted earnings per share, while Chief Executive Officer Tim Breen and CFO Sam Franklin said AI infrastructure demand is still in the "very early innings" and raised the 2026 communications infrastructure and data center growth outlook to 50%-60% from the high-30% range.