01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Intel Corporation's Q1 2026 filing reveals a challenging quarter marked by a significant net loss of $3.73 billiona.
This loss was heavily influenced by a substantial $3.9 billionb 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 billionc 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.
02—Key points
Key Highlights
- Net loss of $3.73 billion, significantly impacted by a $3.9 billion goodwill impairment charge for Mobileye.
- Revenue increased 7.2% year-over-year to $13.6 billion, driven by growth in Intel Products (CCG and DCAI).
- Client Computing Group (CCG) revenue grew slightly, with higher ASPs for premium products but constrained by lower volumes due to supply issues.
- Data Center and AI (DCAI) revenue saw substantial growth, also driven by higher server ASPs, but faced similar supply constraints.
- Intel Foundry revenue increased, with higher intersegment and external revenue, though the segment continued to report an operating loss.
- Company 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.
- Ongoing supply constraints are expected to persist through the first half to full year of 2026, impacting the ability to meet customer demand.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Intel Corp lost $0.27.
- Revenue$13.58B100.0%
- Cost of revenue−$8.23B60.6%
- Gross profit$5.35B39.4%
- Operating costs−$8.48B62.5%
- Operating income−$3.14B23.1%
- Interest, other & tax−$592.0M4.4%
- Net income−$3.73B27.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 24, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $13.58B$12.67B | +7.2% |
| Cost of Revenue | $8.23B$8.00B | +2.9% |
| Gross Profit | $5.35B$4.67B | +14.4% |
| R&D Expenses | $3.38B$3.64B | −7.3% |
| SG&A Expenses | $1.04B$1.18B | −11.8% |
| Operating Expenses | $8.48B$12.97B | −34.6% |
| Operating Income | -$3.14B-$301.00M | −941.9% |
| Net Income | -$3.73B-$821.00M | −354.1% |
| EPS (Basic) | $-0.73$-0.19 | −284.2% |
| EPS (Diluted) | $-0.73$-0.19 | −284.2% |
| Shares Outstanding (Basic) | 5.08B4.34B | +17.0% |
| Shares Outstanding (Diluted) | 5.08B4.34B | +17.0% |
05—Questions
Frequently Asked Questions
What caused the significant net loss in the quarter?
The substantial net loss of $3.73 billion was primarily due to a non-cash goodwill impairment charge of $3.9 billion, largely attributed to the Mobileye reporting unit. This impairment reflects increased market uncertainty, geopolitical risks, and changes in the competitive landscape affecting Mobileye's fair value.
How is Intel addressing the ongoing supply chain constraints?
Intel acknowledges that supply constraints, both internal and external, have limited its ability to meet customer demand and are expected to persist through at least the first half of 2026. The company is taking actions to increase supply availability by adding capacity in its internal factories and ramping products on its new 18A process node.
What is the significance of the Ireland SCIP repurchase?
In April 2026, Intel completed the repurchase of the 49% minority ownership interest in its consolidated Ireland SCIP VIE for approximately $14.2 billion. This transaction will result in Intel owning 100% of Ireland SCIP, eliminate the non-controlling interest, and extinguish related derivative liabilities. It was funded by existing cash, short-term investments, and a new $6.5 billion term loan, which Intel intends to refinance.
What is the outlook for Intel's foundry business?
The Intel Foundry segment saw revenue growth, driven by increased wafer volumes on newer nodes and higher external customer revenue. However, the segment continued to report an operating loss, influenced by the higher costs associated with ramping new, more advanced process nodes like Intel 18A. Intel aims to grow its external foundry business while continuing to invest in leading-edge process development, contingent on securing sufficient customer demand.
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