Summary
Intel Corporation's Q1 2026 filing reveals a challenging quarter marked by a significant net loss of $3.73 billion. This loss was heavily influenced by a substantial $3.9 billion non-cash goodwill impairment charge, primarily related to the Mobileye reporting unit, reflecting increased market uncertainty and geopolitical risks. Despite the headline loss, the company saw a revenue increase of 7.2% year-over-year to $13.6 billion, driven by strong performance in the Client Computing Group (CCG) and Data Center and AI (DCAI) segments. CCG revenue grew modestly, benefiting from higher average selling prices (ASPs) for premium products, though impacted by lower volumes due to supply constraints. DCAI experienced more robust growth, also driven by higher server ASPs, but faced similar supply limitations that are expected to persist. The Intel Foundry segment, while still operating at a loss, showed increased revenue and external customer engagement. Operationally, Intel is continuing its node development with products on Intel 18A and focus on Intel 14A, though the company acknowledges the risk of pausing development if committed demand is not secured. Liquidity remains strong, with $32.8 billion in cash and short-term investments. However, a significant event post-quarter was the April 2026 repurchase of a 49% minority ownership in Ireland SCIP for approximately $14.2 billion, funded by cash and a new $6.5 billion term loan, which will impact future financial statements. Investors should monitor the company's ability to navigate ongoing supply chain issues, manage the substantial restructuring charges, and successfully execute its long-term foundry strategy amidst a competitive and evolving market, particularly given the recent geopolitical tensions impacting its Israel operations.
Financial Highlights
50 data points| Revenue | $13.58B |
| Cost of Revenue | $8.23B |
| Gross Profit | $5.35B |
| R&D Expenses | $3.38B |
| SG&A Expenses | $1.04B |
| Operating Expenses | $8.48B |
| Operating Income | -$3.14B |
| Net Income | -$3.73B |
| EPS (Basic) | $-0.73 |
| EPS (Diluted) | $-0.73 |
| Shares Outstanding (Basic) | 5.08B |
| Shares Outstanding (Diluted) | 5.08B |
Key Highlights
- 1Net loss of $3.73 billion, significantly impacted by a $3.9 billion goodwill impairment charge for Mobileye.
- 2Revenue increased 7.2% year-over-year to $13.6 billion, driven by growth in Intel Products (CCG and DCAI).
- 3Client Computing Group (CCG) revenue grew slightly, with higher ASPs for premium products but constrained by lower volumes due to supply issues.
- 4Data Center and AI (DCAI) revenue saw substantial growth, also driven by higher server ASPs, but faced similar supply constraints.
- 5Intel Foundry revenue increased, with higher intersegment and external revenue, though the segment continued to report an operating loss.
- 6Company repurchased a 49% minority interest in Ireland SCIP for $14.2 billion in April 2026, funded by cash and a new $6.5 billion loan.
- 7Ongoing supply constraints are expected to persist through the first half to full year of 2026, impacting the ability to meet customer demand.