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 exceeding expectations, driven by strong demand for CPUs, especially in AI and advanced packaging, despite ongoing supply constraints.

• Strategic focus on AI-driven growth, advanced packaging, and manufacturing network, with partnerships and product launches including Google, NVIDIA, SpaceX, xAI, Tesla, and SambaNova.

• Cultural and operational transformation underway, emphasizing engineering execution, customer-centricity, and disciplined execution.

• Net loss attributable to Intel was $(3.7) billion, primarily due to a $3.9 billion non-cash goodwill impairment charge for Mobileye, reflecting increased macroeconomic and geopolitical risks.

• Gross profit increased 14% year-over-year to $5.3 billion, with gross margin improving to 39.4% GAAP and 41.0% non-GAAP.

Financial highlights

• Q1 2026 revenue: $13.6 billion, up 7% year-over-year and $1.4 billion above guidance.

• Non-GAAP gross margin: 41.0%, up 1.8 points YoY; GAAP gross margin: 39.4%.

• Non-GAAP EPS: $0.29, up $0.16 YoY; GAAP EPS: $(0.73), down $0.54 YoY.

• Operating cash flow: $1.1 billion; adjusted free cash flow: $(2.0) billion.

• Net loss attributable to Intel: $(3.7) billion, driven by $3.9 billion Mobileye impairment.

Outlook and guidance

• Q2 2026 revenue guidance: $13.8–$14.8 billion; non-GAAP gross margin: 39.0%; non-GAAP EPS: $0.20.

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

• Supply constraints expected to persist through at least H1 2026, with ongoing production ramp on 18A process node.

• R&D and MG&A expenses expected to decrease in 2026 due to restructuring.

• Capital expenditures for 2026 expected to be flat year-over-year, with increased tool spending to support demand.