GlobalFoundries targets 40% gross margin by 2028 and initiates quarterly dividend of $0.12 per share

GlobalFoundries held its 2026 Investor Day outlining growth tied to three 'mega trends': data center AI infrastructure, 'physical AI' devices, and supply chain resiliency. CEO Tim Breen cited hyperscalers' planned spending of 'more than $700 billion on data center capacity' in 2026, described as 'more than 2x what they spent in 2025,' and noted '11 partnerships for reshoring' with '$3 billion of design wins in 2025 alone' tied to that trend.

CTO Greg Bartlett detailed silicon photonics roadmaps moving from 1.6 terabits per second toward 3.2 terabits per second in pluggables, introduced a co-packaged optics module called SCALE (Silicon Photonics Co-Package Light Engine) described as 'the industry's first OCI-capable solution,' and highlighted 'physical AI' capabilities combining low-power CMOS platforms with planned acquisition of Synopsys ARC and existing MIPS IP.

CFO Sam Franklin announced gross margin targets of 30% exiting 2026, 40% exiting 2028, and 45% longer term, with operating margin of about 25% exiting 2028 and approximately 35% longer term. The board approved a quarterly cash dividend of $0.12 per share payable July 14, with a framework to return 'up to 50% of free cash flow after investments' through buybacks and dividends.

Franklin stated planned capex for 2026 of 15%–20% of revenue, with 20% net capex intensity targeted through the cycle, supported by customer prepayments and government frameworks recovering 'anywhere between 30% and 50% of eligible spending.' Near-term capacity investment is weighted toward the U.S., particularly for silicon photonics in Malta, New York.