Noise confounds present serious complications to functional magnetic resonance imaging (fMRI) analysis. The amount of discernible signals within a single dataset of a subject is often inadequate to obtain satisfactory intra-subject activation detection. To remedy this limitation, we propose a novel group Markov random field (GMRF) that extends each subject's neighborhood system to other subjects to enable information coalescing. A distinct advantage of GMRF over standard fMRI group analysis is that no stringent one-to-one voxel correspondence is required. Instead, intra- and inter-subject neighboring voxels are jointly regularized to encourage spatially proximal voxels to be assigned similar labels across subjects. Our proposed group-extended graph structure thus provides an effective means for handling inter-subject variability. Also, adopting a group-wise approach by integrating group information into intra-subject activation, as opposed to estimating a single average group map, permits inter-subject differences to be characterized and studied. GMRF can be elegantly implemented as a single MRF, thus enabling all subjects' activation maps to be simultaneously and collaboratively segmented with global optimality guaranteed in the case of binary labeling. We validate our technique on synthetic and real fMRI data and demonstrate GMRF's superior performance over standard fMRI analysis.