Intel (INTC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $13.6 billion, up 7% year-over-year, marking the sixth consecutive quarter above expectations, driven by strong demand for CPUs, especially in AI and server applications, and advanced packaging.

• AI-driven businesses now represent 60% of revenue, growing 40% year-over-year.

• Strategic partnerships and product launches, including collaborations with Google, NVIDIA, SpaceX, xAI, Tesla, and SambaNova, and expansion of foundry and packaging capacity.

• Company transformation and operational discipline have improved execution, customer focus, and factory output.

• Net loss attributable to Intel was $(3.7) billion, primarily due to a $3.9 billion non-cash goodwill impairment charge related to Mobileye.

Financial highlights

• Q1 2026 revenue was $13.6 billion, $1.4 billion above the midpoint of guidance, up from $12.7 billion in Q1 2025.

• Non-GAAP gross margin reached 41%, up 1.8 points year-over-year and 650 basis points above guidance; GAAP gross margin was 39.4%.

• Non-GAAP EPS was $0.29, including a $0.06 one-time gain; GAAP EPS was $(0.73).

• Operating cash flow was $1.1 billion; adjusted free cash flow was $(2.0) billion due to $5 billion in gross CapEx.

• Net loss attributable to Intel was $(3.7) billion, or $(0.73) per share, driven by a $3.9 billion Mobileye impairment.

Outlook and guidance

• Q2 2026 revenue guidance: $13.8–$14.8 billion, up 2–9% sequentially.

• Q2 non-GAAP gross margin forecast at 39%, with non-GAAP EPS of $0.20.

• Full-year PC unit TAM expected to decline low double digits; server CPU demand outlook improved to double-digit unit growth.

• Capital expenditures for 2026 expected to be flat year-over-year, with increased tool and capacity investments.

• R&D and MG&A expenses are expected to decrease in 2026 due to restructuring and cost-reduction measures.