Intel reported a 7% year-over-year revenue increase driven by strong demand for CPUs in the AI era and growth in its Foundry business. Despite a GAAP net loss, non-GAAP net income showed significant improvement, reflecting disciplined execution and expanding supply. The company is strategically positioning itself to capitalize on the AI opportunity with new product launches and key partnerships.
First-quarter revenue was $13.6 billion, up 7% year-over-year, driven by strong demand for CPUs in the AI era and a 16% increase in Intel Foundry revenue.
positiveNon-GAAP EPS attributable to Intel was $0.29, a 123% increase year-over-year, exceeding expectations.
positiveNon-GAAP operating margin improved significantly to 12.3% from 5.4% in the prior year, up 6.9 percentage points.
positiveData Center and AI (DCAI) revenue increased 22% year-over-year to $5.1 billion.
positiveIntel repurchased the 49% minority equity interest in the joint investment entity related to Fab 34 in Ireland, reflecting a strengthened balance sheet.
neutralGAAP net loss attributable to Intel was $3.7 billion, compared to a loss of $0.8 billion in the prior year.
negativeGAAP diluted EPS was $(0.73), a significant decline from $(0.19) in the prior year.
negativeRestructuring and other charges were $4.07 billion in Q1 2026, a substantial increase from $156 million in Q1 2025, impacting GAAP profitability.
negativeInventories increased to $12.4 billion from $11.6 billion in the prior year, an increase of approximately 6.7%.
attentionGAAP operating income was a loss of $3.1 billion, compared to a loss of $0.3 billion in the prior year.
negativeThe 'All other' business unit revenue decreased 33% year-over-year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Client Computing Group (CCG) | N/A | — | — | — |
Data Center and AI (DCAI) | N/A | — | — | — |
Intel Foundry | N/A | — | — | — |
All Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.
With a solid foundation in place, we are addressing this opportunity by listening to our customers and driving their success with our technical expertise and differentiated IP.
This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations, as well as new and deepened relationships with strategic partners.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.