GlobalFoundries lifts Q3 margin to 31.4% as silicon photonics demand climbs
In brief
- GlobalFoundries Q3 2026 revenue reached $1.899 billion, up 13% year-over-year and 6% quarter-over-quarter.
- Non-IFRS gross margin hit 31.4%, up 540 basis points from a year earlier.
- Communications infrastructure and data center revenue rose 81%, now about 17% of total revenue.
- GlobalFoundries raised its 2026 silicon photonics revenue outlook to $500 million.
- Q4 guidance: about $2.0 billion revenue and roughly 31.5% non-IFRS gross margin.
Optical networking drives the quarter
Revenue rose 6% from the prior quarter and 13% year-over-year, per GlobalFoundries' Q3 2026 results as reported by Crypto Briefing. The publication called it the company's best margin quarter on record.
The standout segment was communications infrastructure and data center. Its revenue climbed 81% year-over-year and now accounts for approximately 17% of total company revenue, with heavy demand coming from silicon photonics and silicon germanium (SiGe) technologies used in AI-focused data centers.
It's worth defining both. Silicon photonics places the components that move data using light directly onto silicon chips, while SiGe blends silicon with germanium to handle the high-speed signals that show up in networking gear and transceivers.
GlobalFoundries says it has more than 50 silicon photonics customers (including seven of the top 10 optical transceiver suppliers). The company also says it has a partnership with Marvell for SiGe capacity at its Vermont facility.
A pulled-forward photonics target
The company raised its 2026 silicon photonics revenue outlook to $500 million. It now expects that business to reach an annualized run rate of approximately $1 billion by the end of 2027, a target that lands a year ahead of its prior estimate. Both figures are company projections, and they aren't reported results.
To get there, GlobalFoundries is reallocating manufacturing capacity away from lower-margin mobile device chips. The freed-up capacity is heading toward two areas: optical data center connectivity and custom automotive silicon.
Mobile chips aren't where that capacity is going.
CEO Tim Breen pointed to the company's strong momentum in AI applications and its targeted end markets as key reasons for the results, Crypto Briefing reported.
Fourth-quarter guidance
For the fourth quarter of 2026, GlobalFoundries is guiding to revenue of around $2.0 billion and projects a non-IFRS gross margin of around 31.5%. That's guidance, not a booked number, and the company will report the actual figures with its Q4 results.
Frequently asked questions
What is silicon photonics and why does it matter to GlobalFoundries?
Silicon photonics places the components that move data using light directly onto silicon chips. GlobalFoundries said it has more than 50 silicon photonics customers, including seven of the top 10 optical transceiver suppliers, and raised its 2026 silicon photonics revenue outlook to $500 million.
What is SiGe technology used for?
SiGe blends silicon with germanium to handle high-speed signals, the kind used in networking gear and transceivers. GlobalFoundries reported heavy demand for SiGe from AI-focused data centers and says it has a partnership with Marvell for SiGe capacity at its Vermont facility.
What guidance did GlobalFoundries give for Q4 2026?
GlobalFoundries guided to fourth-quarter 2026 revenue of around $2.0 billion and projected a non-IFRS gross margin of around 31.5%. These are company projections, not reported results.
