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 of outperformance, driven by strong demand for CPUs, AI applications, and advanced packaging.

• AI-driven businesses contributed significantly to growth, with Data Center and AI (DCAI) and Foundry segments showing robust performance despite ongoing supply constraints.

• Strategic partnerships and product launches, including collaborations with Google, NVIDIA, and others, supported expansion in AI and heterogeneous compute.

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

• Operational efficiency, innovation, and customer-centricity remain key transformation drivers.

Financial highlights

• Q1 2026 revenue was $13.6 billion, up from $12.7 billion year-over-year, with non-GAAP EPS at $0.29 and GAAP EPS at $(0.73).

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

• Non-GAAP net income was $1.5 billion, up 156% YoY; GAAP net loss was $(3.7) billion.

• Operating cash flow was $1.1 billion; adjusted free cash flow was $(2.0) billion due to $5.0 billion in gross CapEx.

• Operating loss was $(3.1) billion, driven by $4.1 billion in restructuring and impairment charges.

Outlook and guidance

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

• Supply constraints are expected to persist through at least the first half of 2026, impacting ability to fully meet demand.

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

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

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