CPU now serves as the orchestration layer and critical control plane for the entire AI stack. Inference is more efficient on CPUs and the CPU ecosystem remains central to AI deployment.
— David Zinsner
03Detailed Report
INL.DE
Company INL.DE
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Intel reported a strong first quarter of 2026 in revenue and non-GAAP gross margin, but GAAP results remained negative due to total other income and ongoing ramp costs. Q1 revenue was $13.58 billion, with non-GAAP gross margin at 41% and GAAP gross margin below that due to higher costs associated with ramp timing, while net income on a GAAP basis was negative as reported. Management emphasized the acceleration of AI-related demand and the strategic importance of CPU-centric AI architectures, including Xeon server momentum, the Intel Foundry optimizations, and the continued ramp of Intel 18A and 14A process technologies. The company reiterated a clear path to higher supply and a multi-year growth trajectory centred on CPU-led AI infrastructure, advanced packaging, and a broader foundry ecosystem, while guiding for continued near-term margin headwinds from 18A ramp, memory and wafer-cost pressures, and ongoing investments in 14A initiatives.
Key Performance Indicators
Revenue
Increasing
13.58B
QoQ: 7.18% | YoY: 2.21%
Gross Profit
Increasing
5.44B
40.09% margin
QoQ: 16.50% | YoY: 172.56%
Operating Income
Increasing
1.03B
QoQ: 442.19% | YoY: 111.37%
Net Income
Increasing
-3.73B
QoQ: -354.08% | YoY: 77.59%
EPS
Increasing
-0.73
QoQ: -284.21% | YoY: 81.19%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $13.58B in Q1 2026 (YoY up about 7% vs. Q1 2025). Q1 AI-driven businesses represent ~60% of revenue, up 40% YoY.
- Gross margin (non-GAAP): 41.0% in Q1, ~650 bps above guidance driven by higher volumes, mix, and favorable yields, partially offset by ramp costs on new nodes.
- GAAP vs. non-GAAP: GAAP net loss of $3.73B; non-GAAP EPS of $0.29 vs breakeven guidance; on a GAAP basis, the quarter included a sizable negative total other income/expense.
- Operating cash flow and capital expenditure: Q1 operating cash flow $1.1B; gross capex $5.0B; adjusted free cash flow of $(2.0)B.
- Segment highlights: CCG revenue $7.7B (down 6% sequentially); DCAI revenue $5.1B (up 7% sequential, up 22% YoY); Intel Foundry revenue $5.4B (up 20% sequential); external foundry revenue $174M; All Other $0.628B.
- Guidance: Q2 revenue guidance $13.8B–$14.8B; non-GAAP gross margin ~39%; EPS $0.20; tax rate ~11%.
- Capital allocation and guidance context: 2026 OpEx targeted around $16B (likely higher due to inflationary pressures and targeted investments); CapEx expected to be flat YoY with higher tooling spend (~+25% YoY) and a balanced mix of internal/external capacity; NCI to net around $250M per quarter in Q2–Q4 2026; Fab 34 Ireland buyout completed to capture full economic benefits.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.58B
2.21%
7.18%
Gross Profit
5.44B
172.56%
16.50%
Operating Income
1.03B
111.37%
442.19%
Net Income
-3.73B
77.59%
-354.08%
EPS
-0.73
81.19%
-284.21%
Key Financial Ratios
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