10-QPeriod: Q1 FY2026

INTEL CORP Quarterly Report for Q1 Ended Mar 28, 2026

Filed April 24, 2026For Securities:INTC

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
Beta

Revenue

$13.58B

39.4% Gross Margin

Net Income

-$3.73B

-27.5% Net Margin

EPS (Diluted)

$-0.73

Total Assets

$205.33B

Cash & Equivalents

$17.25B

Free Cash Flow

-$2.54B

Financial Statements
Beta
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.

Frequently Asked Questions

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.

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.

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.

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.