(unaudited)
August 5, 2026
Results and Highlights
Second Quarter 2026 Results
Revenue
$1.79B
↑ 6% Y/Y
Non-IFRS Gross Margin(1)
29.9%
↑ 470bps Y/Y
Non-IFRS Earnings per Share(1)
$0.46
↑ 10% Y/Y
(1) See the Appendix for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and for a discussion of why we believe these Non-IFRS measures are useful.
4
Key Second Quarter 2026 HighlightsQuarterly Results Margin Expansion
» Q2 2026 revenue and non-IFRS gross margin(1) exceeded the high end of our guidance ranges
» Non-IFRS gross margin(1) grew nearly 500bps Y/Y, a second quarter record
End Market Highlight Shareholder Return
» Seventh consecutive quarter of double digit
% year-over-year revenue growth in CI&D
» On July 14, GF paid its first-ever quarterly cash dividend of $0.12 per share
(1) See the Appendix for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and for a discussion of why we believe these Non-IFRS measures are useful. 5
Key AnnouncementsGF Accelerates U.S. Silicon Photonics Leadership
SCALE™ Platform
Targets industry-leading modularity, 400Gb/s performance and a 5x increase in energy efficiency over current-generation implementations.
Manufacture & Integrate
Advances optical materials, wafer technologies and advanced packaging, including proven 3D hybrid bonding.
Customer-Driven Roadmap
Working with leading customers to ensure emerging NPO and CPO architectures are supported by U.S.-based R&D.
Scaling Technologies for the Next Wave of AI
$300M of U.S. Government Support
Letter of intent with Department of Commerce for a new, incremental
$300M award to offset R&D and capital expenditures.
"The CHIPS R&D incentives will support a breakthrough in compute and communication networks moving past traditional copper bottlenecking to power next-generation AI. Accelerating R&D for domestic photonics capabilities and advanced packaging provides American industry the extreme bandwidth and energy efficiency to scale complex AI workloads securely and rapidly."
Bill Frauenhofer, Executive Director for Semiconductor Innovation and Investment at the Department of Commerce
7
Strong Endorsement Across Photonics Ecosystem"
"
Scaling US manufacturing requires advances across chips, networking, optics, software, and manufacturing. Silicon photonics is essential to that future, and GlobalFoundries brings the manufacturing expertise to help make it real in the United States." - Jensen Huang, Founder and CEO, Nvidia
GlobalFoundries' investment in next-generation silicon photonics technologies helps strengthen the foundation for future AI networking and optical infrastructure." - Jeetu Patel, President and Chief Product Officer, Cisco
BROADCOM
"
"
GlobalFoundries' announcement helps strengthen the innovation ecosystem needed to accelerate development of these foundational technologies." - Near Margalit, VP and GM of Optical Systems Division, Broadcom
We welcome GlobalFoundries' continued investment in U.S.-based innovation and manufacturing, and the broader public-private collaboration needed to advance these foundational technologies." - Mark Papermaster, CTO and EVP, AMD
"
"Silicon photonics has the potential to play an important role in supporting next-generation AI platforms by helping address growing bandwidth and connectivity demands. We welcome efforts that advance innovation in this important technology area." - Kevin O'Buckley, EVP, Global Operations and Supply Chain, Qualcomm Technologies, Inc.
" META "
As a leader in silicon photonics and optical connectivity, Marvell welcomes continued investment in U.S.-based R&D to accelerate the transition to near-packaged and co-packaged optics, key to scaling the next generation of AI infrastructure." - Chris Koopmans, President and Chief Operating Officer, Marvell
We believe that a multi-supplier, geographically diverse ecosystem produces the best
"
"
technical innovations and the most scalable high-volume supply chains, and investing in U.S. manufacturing capacity is a crucial component in achieving [our] goal." - Yee Jiun Song, VP of Engineering, Meta
GlobalFoundries' investments in silicon photonics and advanced packaging, combined with support from the U.S. government, are helping accelerate an open path to next-generation optical interconnect that will be essential for the future of AI and high-performance computing." - Michael Hurlston, CEO, Lumentum
GlobalFoundries' announcement today help strengthen the U.S. innovation and manufacturing
base needed to scale future AI infrastructure." -Wendell P. Weeks, Chairman, CEO, and President, Corning Incorporated
Microsoft welcomes industrywide investments that accelerate innovation and strengthen the ecosystem developing the technologies that will power the future of AI." - Rani Borkar, President of Azure Hardware Systems and Infrastructure, Microsoft
8
GF Acquires Photeon Technologies' IVR TeamGF closed a strategic acqui-hire of the custom power team from Photeon Technologies, bringing an experienced design team focused on integrated voltage regulators, or IVRs, further strengthening our roadmap depth in power technologies and expanding our serviceable market within AI data centers.
Incremental Benefits From Acquisition:
Delivers new IVR technology that complements GF's BCD, GaN and integrated inductor portfolio
Expands R&D depth that strengthens GF's roadmap in power technologies
Brings an experienced engineering team across design, layout, architecture and verification
GF brings together a unique combination of capabilities under one roof: FinFET technology, advanced thin-film integrated magnetics, semiconductor manufacturing, and system understanding expertise. Together, these capabilities give us the opportunity to fundamentally rethink voltage regulation for AI processors.
9
GF Acquires Synopsys' Processor IP SolutionsGF furthers its leadership in RISC-V and Physical AI with the closing of its strategic acquisition of ARC - together with MIPS, GF now offers world-class RISC-V and Physical AI processor IP, software tools, custom design and proven manufacturing capabilities all under one roof, adding meaningful value for customers.
Incremental Benefits From Acquisition:
Differentiated Technology
150+ Patents
Expanded Opportunity
300+ Customers
Strengthened Team
400+ Engineers
"With MIPS and ARC united, GF delivers the software, IP and custom silicon capabilities our customers need to build differentiated, application-specific solutions across automotive, industrial robotics and embedded systems, enabling us to operate as a holistic technology partner and engage throughout the design cycle."
Sameer Wasson, CEO of MIPS
10
GF Establishes Quantum Technology SolutionsQubit-Agnostic Platform
Across superconducting, trapped ion, photonic, topological and silicon spin, GF is relevant regardless of modality.
Manufacture & Integrate
A decade of GF investment turned into a scalable, U.S.-based platform, anchored in New York & Vermont.
Cryogenic CMOS & Advanced Packaging
Proven FDX cryo-CMOS read-out & control, extended with 3D heterogeneous packaging & superconducting interconnects.
GF Enabling The Next Frontier Of Computation
$375M of U.S. Government Support
Letter of intent with Department of Commerce for a new, incremental
$375M award to offset both R&D and capital expenditures.
"Quantum computing will be a defining technology of the next decade, and the countries that can manufacture quantum hardware at scale - not just design it - will hold a decisive advantage. Establishing a dedicated U.S. quantum foundry is exactly the kind of investment we need to translate American research leadership into durable industrial capability."
Chris Miller, professor at the Fletcher School, Tufts University, and author of Chip War
11
Strong Endorsement Across Quantum Ecosystem"
Diraq's work with GlobalFoundries on FDX™ has been central to advancing our cryogenic CMOS and silicon spin qubit technologies on an established manufacturing node." - Andrew Dzurak, Founder and CEO, Diraq
"
GlobalFoundries' investment marks an important step to strengthen the U.S.-based manufacturing foundation for the quantum ecosystem." - Charina Chou, COO, Google Quantum AI
"
"
GlobalFoundries' commitment to scaling quantum is an important step for innovation in the quantum computing ecosystem." - Timothy Costa, Vice President and General Manager for Computational Engineering and Quantum, NVIDIA
Expanding that partnership through a dedicated quantum foundry will help give us the domestic production base we need as we work to bring our next generation of commercial ion trap platforms to market with greater speed and confidence." - Dr. Rajeeb Hazra, President and CEO, Quantinuum
A dedicated quantum foundry at GF will give us the manufacturing capabilities to advance our roadmap and bring our next wave of quantum systems closer to real-world deployment." - Jason Lynch, CEO, Equal1
"
"
"
A secure U.S. manufacturing base, capable of building across multiple qubit modalities, is essential to moving quantum from research milestones to practical computing." - Lauri Sainiemi, Corporate Vice President, Fabrication at Microsoft Quantum
We're pleased that GF will expand its investments, especially here in the United States, and we look forward to continued collaboration alongside one of our closest partners." - Victor Peng, Interim Chief Executive Officer, PsiQuantum
"
With the creation of a U.S. quantum foundry, we see an opportunity to deepen that work, move our designs into more advanced generations and accelerate the path toward scalable silicon-based quantum processors." - James Palles-Dimmock, CEO, Quantum Motion
12
End MarketsEnd Market Commentary
Communications Infrastructure and Data Center »
Automotive »
Smart Mobile Devices »
Home and Industrial IoT »
Silicon Photonics and SiGe demand led to seventh consecutive quarter of double digit % Y/Y growth for CI&D.
Growth opportunities being shaped by content expansion across power, processing, sensing, and safety applications.
Ongoing demand impacts from memory-related shortages have meaningfully reduced industry forecasts.
Marked the fastest Y/Y growth since 2022, driven by demand for a broadening range of home and industrial applications.
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Communications Infrastructure and Data Center
Q2'26 Revenue
$277M
↑ 62% Y/Y
End Market Commentary
We secured seven new optical networking design wins across transceiver, hyperscaler, and networking customers and now expect to over double silicon photonics revenue in 2026.
Beyond optical networking, we saw strong double digit year-over-year growth in applications across both wireless infrastructure and storage.
15
Automotive
Q2'26 Revenue
$333M
↓ (10)% Y/Y
End Market Commentary
Taped out a new ADAS radar built on our FDX platform for Bosch - a notable milestone and the culmination of years of close partnership.
Secured a significant Automotive power design win for 5V and 10V PMICs built on our BCD platform, marking an expansion in our automotive power platform.
16
Smart Mobile Devices
Q2'26 Revenue
$644M
↓ (6)% Y/Y
End Market Commentary
We strengthened our position with next-gen AR wearables at a leading hyperscaler with a new design win for microLED display backplane on our SLPe platform.
We secured a notable design win on GF's BCD platform with MediaTek - further validating our expanding power platform and marking the first-ever PMIC win with this customer.
17
Home and Industrial IoT
Q2'26 Revenue
$331M
↑ 10% Y/Y
End Market Commentary
We secured three strategic chiplet design wins with Lockheed Martin on our FinFET and FDX platforms, further extending GF's leadership as a trusted U.S. foundry.
We expanded our relationship with Microchip through a meaningful FinFET design win on the strength of our embedded compute and edge AI offerings.
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Q2 2026 Revenue by End Market
(Unaudited, in millions)
Year-over-Year Sequential
Q2 2026 | Q1 2026 | Q2 2025 Q2 2026 vs Q2 2025 Q2 2026 vs Q1 2026 | |
Smart Mobile Devices | $644 | $558 | $683 $(39) (6)% $86 15% |
Communications Infrastructure and Data Center | $277 | $230 | $171 $106 62% $47 20% |
Home and Industrial IoT | $331 | $255 | $300 $31 10% $76 30% |
Automotive | $333 | $382 | $368 $(35) (10)% $(49) (13)% |
Technology Services | $201 | $209 | $166 $35 21% $(8) (4)% |
Revenue | $1,786 | $1,634 | $1,688 $98 6% $152 9% |
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Q2 2026 Revenue Mix by End Market(Unaudited)
10%
22%
40%
Q2 2025
18%
10%
11%
36%
19%
Q2 2026
19%
16%
Smart Mobile DevicesCommunications Infrastructure and Data Center Home and Industrial IoT
Automotive Technology Services
Totals may not sum to 100% due to rounding
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Capital AllocationYear-to-Date 2026
We continue to expect adjusted free cash flow margin(1) of approximately 10% for the full year 2026.
GF's Board of Directors approved a continuation of our $0.12 quarterly
Cash flow from operations $947
Capital expenditures $723 (21% of Revenue)
dividend, payable on October 9, 2026 to shareholders of record as of September 23, 2026.
Non-IFRS Capital expenditures
net of government grants(1)
$717 (21% of Revenue)
Non-IFRS Adjusted FCF(1) $230 (7% of Revenue)
Cash, cash equivalent and marketable securities
$3.3B at the end of Q2'26
(1) See the Appendix for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and for a discussion of why we believe these Non-IFRS measures are useful.
21
Outlook
22
Q3 2026 Guidance(1)
(Unaudited, in millions USD, except per share amounts)
IFRS | Share-Based Compensation(3) | Non-IFRS(2) | |
Net Revenue | $1,885 ± $25 | ||
Gross Margin(2) | 29.5% ± 100bps | ~100bps | 30.5% ± 100bps |
Operating Expenses(2) | $318 ± $10 | ~$58 | $260 ± $10 |
Operating Margin(2) | 12.7% ± 170bps | ~400bps | 16.7% ± 170bps |
Diluted EPS(2)(4) | $0.37 ± $0.05 | ~$0.14 | $0.51 ± $0.05 |
Fully Diluted Share Count | ~556 |
(1) The Guidance provided contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The Guidance includes management's beliefs and assumptions and is based on information that is available as of the date of this release.
(2) Non-IFRS gross margin, Non-IFRS operating expenses, Non-IFRS operating margin and Non-IFRS diluted EPS are Non-IFRS measures and, for purposes of the Guidance only, are defined as gross profit as a percent of revenue, operating expenses, operating profit as a percent of revenue, and diluted EPS, all before share-based compensation, respectively. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful.
(3) We expect share-based compensation of $18 million and $58 million in cost of revenue and operating expenses, respectively. The Non-IFRS margin impacts are calculated by dividing share-based compensation by net revenue, and the Non-IFRS diluted EPS impact is calculated by dividing share-based compensation by the fully diluted share count.
(4) Included in IFRS and Non-IFRS diluted EPS is net interest income (expense) and other income (expense) which we estimate will be between $3 million and $11 million for the third quarter 2026. Also included in IFRS and Non-IFRS diluted EPS is income tax expense which we estimate will be between $28 million and $52 million for the third quarter 2026.
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Appendix: Summary Financials and ReconciliationsQ2 2026 Financial Summary
(Unaudited, in millions, except per share data and wafer shipments)
Q2 2026 | |||||||
Net revenue | $ 1,786 | $ 1,634 | $ 1,688 | $ 98 | 6% | $ 152 | 9 % |
Gross profit | $ 505 | $ 451 | $ 408 | $ 97 | 24 % | $ 54 | 12 % |
Gross margin | 28.3% | 27.6% | 24.2% | +410bps | +70bps | ||
Non-IFRS gross profit(1) | $ 534 | $ 474 | $ 425 | $ 109 | 26 % | $ 60 | 13 % |
Non-IFRS gross margin(1) | 29.9% | 29.0% | 25.2% | +470bps | +90bps | ||
Operating profit | $ 174 | $ 180 | $ 196 | $ (22) | (11%) | $ (6) | (3)% |
Operating margin | 9.7% | 11.0% | 11.6% | (190)bps | (130)bps | ||
Non-IFRS operating profit(1) | $ 298 | $ 271 | $ 258 | $ 40 | 16% | $ 27 | 10 % |
Non-IFRS operating margin(1) | 16.7% | 16.6% | 15.3% | +140bps | +10bps | ||
Net income | $ 167 | $ 104 | $ 228 | $ (61) | (27%) | $ 63 | 61 % |
Net income margin | 9.4% | 6.4% | 13.5% | (410)bps | +300bps | ||
Non-IFRS net income(1) | $ 256 | $ 227 | $ 234 | $ 22 | 9% | $ 29 | 13 % |
Non-IFRS net income margin(1) | 14.3% | 13.9% | 13.9% | +40bps | +40bps | ||
Diluted earnings per share ("EPS") | $ 0.30 | $ 0.18 | $ 0.41 | $ (0.11) | (27)% | $ 0.12 | 67 % |
Non-IFRS diluted EPS(1) | $ 0.46 | $ 0.40 | $ 0.42 | $ 0.04 | 10% | $ 0.06 | 15 % |
Non-IFRS adjusted EBITDA(1) | $ 587 | $ 561 | $ 585 | $ 2 | - % | $ 26 | 5 % |
Non-IFRS adjusted EBITDA margin(1) | 32.9% | 34.3% | 34.7% | (180)bps | (140)bps | ||
Cash from operations | $ 405 | $ 542 | $ 431 | $ (26) | (6)% | $ (137) | (25)% |
Wafer shipments (300MM Equivalent) (in thousands) | 625 | 579 | 581 | 44 | 8 % | 46 | 8 % |
Year-over-Year Sequential
Q1 2026 Q2 2025 Q2 2026 vs Q2 2025 Q2 2026 vs Q1 2026
(1) See the Appendix for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and for a discussion of why we believe these Non-IFRS measures are useful.
25
Statement of Operations(Unaudited, in millions, except per share amounts)
June 30, 2026 | Three Months Ended March 31, 2026 | June 30, 2025 | ||||
Net revenue | $ | 1,786 | $ | 1,634 | $ | 1,688 |
Cost of revenue | 1,281 | 1,183 | 1,280 | |||
Gross profit | $ | 505 | $ | 451 | $ | 408 |
Operating expenses: | ||||||
Research and development | 174 | 132 | 134 | |||
Selling, general and administrative | 157 | 139 | 78 | |||
Operating expenses | $ | 331 | $ | 271 | $ | 212 |
Operating profit | $ | 174 | $ | 180 | $ | 196 |
Finance income (expense), net | 9 | 15 | 17 | |||
Other income (expense), net | 13 | (10) | 8 | |||
Income tax (expense) benefit | (29) | (81) | 7 | |||
Net income | $ | 167 | $ | 104 | $ | 228 |
EPS: | ||||||
Basic | $ | 0.30 | $ | 0.19 | $ | 0.41 |
Diluted | $ | 0.30 | $ | 0.18 | $ | 0.41 |
Shares used in EPS calculation: | ||||||
Basic | 549 | 555 | 555 | |||
Diluted | 556 | 561 | 557 | |||
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Statements of Financial Position(Unaudited, in millions)
As of
June 30, 2026 December 31, 2025
Assets: | |||||
Cash and cash equivalents | $ 1,087 | $ | 1,809 | ||
Marketable securities | 1,270 | 1,241 | |||
Receivables, prepayments and other | 1,489 | 1,578 | |||
Inventories | 1,622 | 1,577 | |||
Current assets | 5,468 | 6,205 | |||
Property, plant, and equipment, net | 7,098 | 7,223 | |||
Goodwill and intangible assets, net | 1,861 | 1,368 | |||
Marketable securities | 946 | 939 | |||
Right-of-use assets | 578 | 569 | |||
Other assets | 937 | 837 | |||
Non-current assets | 11,420 | 10,936 | |||
Total assets | $ 16,888 | $ | 17,141 | ||
Liabilities and equity: | |||||
Current portion of long-term debt | $ 98 | $ | 86 | ||
Other current liabilities | 2,111 | 2,282 | |||
Current liabilities | 2,209 | 2,368 | |||
Non-current portion of long-term debt | 1,024 | 1,065 | |||
Non-current portion of lease obligations | 495 | 487 | |||
Other liabilities | 1,286 | 1,238 | |||
Non-current liabilities | 2,805 | 2,790 | |||
Total liabilities | 5,014 | 5,158 | |||
Shareholders' equity: | |||||
Common stock / additional paid-in capital | $ 23,937 | $ | 24,231 | ||
Accumulated deficit | (12,178) | (12,381) | |||
Accumulated other comprehensive income | 59 | 78 | |||
Non-controlling interests | 56 | 55 | |||
Total liabilities and equity | $ 16,888 | $ | 17,141 | ||
27 | |||||
Statement of Cash Flows
(Unaudited, in millions)
Three Months Ended
June 30, 2026 June 30, 2025
Operating Activities: | ||||
Net income | $ | 167 | $ | 228 |
Depreciation and amortization | 307 | 335 | ||
Finance (income) expense, net and other | (14) | (8) | ||
Deferred income taxes | 18 | (20) | ||
Net change in working capital | (115) | (136) | ||
Other non-cash operating activities | 42 | 32 | ||
Net cash provided by operating activities | $ | 405 | $ | 431 |
Investing Activities: | ||||
Purchases of property, plant and equipment and intangible assets | $ | (411) | $ | (159) |
Acquisitions, net of cash acquired | (440) | - | ||
Net sales (purchases) of marketable securities | (294) | (23) | ||
Other investing activities | 26 | (25) | ||
Net cash used in investing activities | $ | (1,119) | $ | (207) |
Financing Activities: | ||||
Proceeds from issuance of equity instruments, net of taxes paid | $ | (3) | $ | 1 |
Proceeds (repayment) of debt, net | (45) | (36) | ||
Net cash used in financing activities | $ | (48) | $ | (35) |
Effect of exchange rate changes | - | 5 | ||
Net change in cash and cash equivalents | $ | (762) | $ | 194 |
Cash and cash equivalents at the beginning of the period | 1,849 | 1,596 | ||
Cash and cash equivalents at the end of the period | $ | 1,087 | $ | 1,790 |
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IFRS to Non-IFRS Reconciliations (1)(Unaudited, in millions, except per share amounts)
Three Months Ended June 30, 2026
Selling,
Gross profit general &
administrative
Research & development
Operating profit
Other income (expense)
Income tax (expense) benefit
Net income Diluted EPS
0.06
31
-
-
31
(5)
(23)
3
Amortization of acquired intangibles and other acquisition related charges
0.15
83
(3)
-
86
(25)
(38)
23
Share-based compensation
IFRS margins (1)
28.3%
9.7%
9.4%
Structural optimization(2)
3
(4)
-
7
-
(2)
5
0.01
Revaluation and gain on sale equity investments
-
-
-
-
(25)
5
(20)
(0.04)
Non-IFRS measures(1) $
Non-IFRS margins (1)
534
29.9%
$
92 $
144 $
298
16.7%
$
(12) $
(39) $
256
14.3%
$
0.46
Tax matters(3) - - - - - (10) (10) (0.02)
As Reported $ 505 $ 157 $ 174 $ 174 $ 13 $ (29) $ 167 $ 0.30
(1) See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful.
(2) Structural optimization represents costs associated with employee workforce reductions, manufacturing footprint alignment and liquidation charges.
(3) Includes tax impact from foreign exchange revaluation of German deferred taxes.
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IFRS to Non-IFRS Reconciliations(1)(Unaudited, in millions, except per share amounts)
Three Months Ended March 31, 2026
Selling,
Gross profit general & administrative
Research & development
Operating profit
Other income (expense)
Income tax (expense) benefit
Net income Diluted EPS
0.03
19
(3)
-
22
(2)
(15)
5
Amortization of acquired intangibles and other acquisition related charges
Share-based compensation
16
(32)
(15)
63
-
(2)
61
0.11
IFRS margins (1)
27.6%
11.0%
6.4%
Structural optimization(2)
2
(3)
(1)
6
-
(1)
5
0.01
Tax matters(3)
-
-
-
-
-
38
38
0.07
Non-IFRS measures (1) $ 474 $ 89 $ 114 $ 271 $ (10) $ (49) $ 227 $ 0.40
As Reported $ 451 $ 139 $ 132 $ 180 $ (10) $ (81) $ 104 $ 0.18
Non-IFRS margins (1) 29.0% 16.6% 13.9%
(1) See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful.
(2) Structural optimization represents costs associated with employee workforce reductions, manufacturing footprint alignment and liquidation charges.
(3) Includes $38 million tax impact from foreign exchange revaluation of German deferred taxes.
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IFRS to Non-IFRS Reconciliations(1)(Unaudited, in millions, except per share amounts)
Three Months Ended June 30, 2025
Selling,
Gross profit general &
administrative
Research & development
Operating profit
Other income (expense)
Income tax (expense) benefit
Net income Diluted EPS
As Reported | $ 408 | $ 78 | $ 134 | $ 196 | $ 8 | $ 7 | $ 228 | $ 0.41 | ||||||||
IFRS margins (1) | 24.2% | 11.6% | 13.5% | |||||||||||||
Share-based compensation | 17 | (29) | (8) | 54 | - | (2) | 52 | 0.09 | ||||||||
Structural optimization(2) | - | (5) | - | 5 | (24) | - | (19) | (0.03) | ||||||||
Amortization of acquired intangibles and other acquisition related | - | (2) | (1) | 3 | - | - | 3 | 0.01 | ||||||||
charges | ||||||||||||||||
Litigation claims | - | - | - | - | 9 | (1) | 8 | 0.01 | ||||||||
Tax matters(3) | - | - | - | - | - | (38) | (38) | (0.07) | ||||||||
Non-IFRS Measures (1) | $ | 425 | $ | 42 | $ | 125 | $ | 258 | $ | (7) | $ | (34) | $ | 234 | $ | 0.42 |
Non-IFRS margins (1) | 25.2% | 15.3% | 13.9% | |||||||||||||
(1) See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful.
(2) Structural optimization represents costs associated with employee workforce reductions, manufacturing footprint alignment and liquidation charges.
(3) Comprised of net deferred tax asset recognition and foreign exchange impact.
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IFRS to Non-IFRS Reconciliation Non-IFRS Adjusted Free Cash Flow(1)(Unaudited, in millions)
Three Months Ended
June 30, 2026 March 31, 2026 June 30, 2025
Net cash provided by operating activities $ 405 $ 542 $ 431
Less: Purchases of property, plant and equipment and intangible assets
(411) (312) (159)
Add: Proceeds from government grants 3 3 5
Non-IFRS total capital expenditures net of proceeds from government grants(1)
$ (408) $ (309) $ (154)
Non-IFRS adjusted free cash flow(1) $ (3) $ 233 $ 277
Non-IFRS adjusted free cash flow margin(1) (0.2)% 14.3 % 16.4 %
(1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful.
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IFRS to Non-IFRS Reconciliation Non-IFRS Adjusted EBITDA(1)(Unaudited, in millions)
Three Months Ended
June 30, 2026 March 31, 2026 June 30, 2025
Net revenue | $ 1,786 | $ 1,634 | $ 1,688 |
Net income | 167 | 104 | 228 |
Net income margin | 9.4 % | 6.4 % | 13.5 % |
Depreciation and amortization | 307 | 311 | 335 |
Finance expense | 23 | 22 | 22 |
Finance income | (32) | (37) | (39) |
Income tax expense (benefit) | 29 | 81 | (7) |
Share-based compensation | 86 | 63 | 54 |
Structural optimization | 7 | 6 | (19) |
Revaluation of equity investments | (25) | - | - |
Litigation claims | - | - | 9 |
Other acquisition related charges | 25 | 11 | 2 |
Non-IFRS adjusted EBITDA(1) | $ 587 | $ 561 | $ 585 |
Non-IFRS adjusted EBITDA margin(1) | 32.9 % | 34.3 % | 34.7 % |
(1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful.
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Financial Measures (Non-IFRS)In addition to the financial information presented in accordance with International Financial Reporting Standards ("IFRS"), this presentation includes the following Non-IFRS financial measures: Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS operating expense, Non-IFRS net income, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense), Non-IFRS diluted earnings per share ("EPS"), Non-IFRS adjusted EBITDA, Non-IFRS total capital expenditures net of proceeds from government grants, Non-IFRS adjusted free cash flow and any related margins. We define each of Non-IFRS gross profit, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS operating profit, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense) and Non-IFRS net income as gross profit, selling, general and administrative, research and development, operating profit, other income (expense), income tax benefit (expense), and net income, respectively, adjusted for share-based compensation, structural optimization, amortization of acquired intangibles and other acquisition related charges, impairment charges, litigation charges, revaluation of equity investments, restructuring charges, tax matters, and any associated income tax effects. We define Non-IFRS operating expense as Non-IFRS gross profit minus Non-IFRS operating profit. We define Non-IFRS diluted EPS as Non-IFRS net income divided by the diluted shares outstanding. We define Non-IFRS total capital expenditures net of proceeds from government grants as purchases of property, plant and equipment and intangible assets less proceeds from government grants. We define Non-IFRS adjusted free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets plus proceeds from government grants related to capital expenditures. We define Non-IFRS adjusted EBITDA as net income adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amortization, share-based compensation, restructuring charges, impairment charges, revaluation of equity investments, structural optimization, litigation claims and acquisition related charges. We define each of Non-IFRS gross margin, Non-IFRS operating margin, Non-IFRS net income margin, Non-IFRS adjusted free cash flow margin and Non-IFRS adjusted EBITDA margin as Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS adjusted free cash flow and Non-IFRS adjusted EBITDA, respectively, divided by net revenue. Any adjustments described above that are zero for a given period are excluded from the "Reconciliation of IFRS to Non-IFRS" table. See "Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure.
We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS financial measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/ or that we consider to be unrelated to our core operations. Management believes that Non-IFRS adjusted free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period.
Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as comparative measures.
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