2026 04 23 Earnings Intc Q1 2026

Summary

Intel Q1 2026: $13.6B revenue, beat guide by $1.4B; 6th consecutive beat. Foundry revenue $5.4B +20% QoQ. AI revenue = 60% of total, growing 40% YoY. Advanced packaging backlog shifted from "hundreds of millions" to "billions of dollars per year." Core Ultra Series 3 and Intel 18A-based processors achieved fastest new product ramp in 5 years. Google signed 3-5 year long-term agreement. 2026 = "year of execution" — yield, productivity, cycle time catch-up. Risks flagged: memory/wafer/substrate tightness, PC market down low double-digit for full year.

Transcript

[CEO prepared remarks]: Revenue of $13.6 billion exceeded the midpoint of guidance by $1.4 billion, as demand continued to outpace supply across all businesses. Non-GAAP Gross Margin was 41%, or approximately 650 basis points above guidance, attributed to higher volumes, favorable mix, improved pricing, and execution on new node ramps, particularly Intel 18A.

AI-related businesses constituted 60% of revenue and grew 40% year over year. [This marks] a sixth consecutive quarter of surpassing financial expectations.

Long-term agreements signed — including with Google, typically spanning 3-5 years.

Core Ultra Series 3 and Intel 18A-based processors achieved fastest new product ramps in five years.

Advanced packaging backlog shifted from "hundreds of millions" to "billions of dollars per year" in demand.

Fab 34: Completed $7.7 billion cash buyout of 49% equity interest in Irish facility.

[On 2026:] 2026 is the year of execution — improving yield, productivity, and cycle time to catch up with demand.

[CFO on financials]:

• Client Computing (CCG): $7.7B revenue, operating profit $2.5B (33% margin). AI-powered PCs now >60% of client CPU mix, +8% QoQ.
• Data Center and AI (DCAI): $5.1B revenue, +7% QoQ, +22% YoY; operating profit $1.5B (31% margin). ASIC revenue more than doubled YoY.
• Intel Foundry: $5.4B revenue, +20% QoQ; operating loss $2.4B, improving $72M QoQ.
• Operating cash flow: $1.1B; adjusted free cash flow: -$2B.

Q2 guidance: Revenue $13.8–$14.8B (+2–9% QoQ); gross margin 39% (non-GAAP); EPS $0.20.

Risk factors cited: "Constraints and rising prices" in memory, wafers, and substrates. PC market contraction (down low double-digit percent full year). Ongoing Intel 18A yield dynamics and input cost inflation. Full-year operating expenses likely above $16B target due to inflation and investments.

Key financial metrics