Intel : Q1 2026 Intel Corporation Earnings Conference Call

Published: 2026-04-23 16:08:24 ET INTC

Published on 04/23/2026 at 04:08 pm EDT

1st Quarter

Earnings Presentation

Lip-Bu Tan

Chief Executive Officer

David Zinsner

Chief Financial Officer

This presentation contains non-GAAP financial measures. Intel gross margin percentage, operating income, earnings per share attributable to Intel and adjusted free cash flow, including year-over-year comparisons, are presented on a non-GAAP basis. The Appendix provides reconciliations to the most directly comparable GAAP financial measure. Non-GAAP financial measures should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. Please refer to "Explanation of Non-GAAP Measures" in our earnings release dated April 23, 2026 for a detailed explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide investors with useful supplemental information.

Statements in this presentation that refer to business outlook, plans, and expectations are forward-looking statements that involve risks and uncertainties. Such statements may include, but not be limited to, those regarding: our business plans and strategy and anticipated benefits therefrom; projections of our future financial performance, including future revenue, gross margins, capital expenditures, profitability and cash flows; future cash requirements and the availability and sufficiency of funding; future products, services and technologies, and the expected goals, timeline, ramps, progress, availability, production, regulation and benefits of such products, services and technologies, including future process nodes and packaging technology, product roadmaps, schedules, future product architectures, expectations regarding process performance, per-watt parity, and metrics and expectations regarding product and process competitiveness; internal and external manufacturing plans; future production capacity and product supply; supply expectations; plans and goals related to Intel's foundry business, including with respect to anticipated customers, future manufacturing capacity and service, technology and IP offerings; expected timing and impact of acquisitions, divestitures, and other significant transactions; expected completion and impacts of restructuring activities and cost-saving or efficiency initiatives; social and environmental performance goals; our anticipated growth, future market share, customer demand and trends in our businesses and operations; projected market trends; anticipated trends and impacts related to industry component, substrate, and foundry capacity utilization, shortages and constraints; expectations regarding government funding, incentives, policies and priorities; technology trends, such as AI; environmental and economic conditions; geopolitical tensions and conflicts, including with respect to international trade policies in areas such as tariffs and export controls, and their potential impact on our business; tax- and accounting-related expectations; expectations regarding certain sanctioned parties; and other characterizations of future events or circumstances.

Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including: the high level of competition and rapid technological change in our industry; the significant long-term and inherently risky investments we are making in R&D and manufacturing facilities; the complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies; a potential pause or discontinuation of our pursuit of Intel 14A and other next generation leading-edge process technologies if we are unable to secure sufficient committed demand for Intel 14A; alternative financing arrangements and the pursuit of government grants; the U.S. government's acquisition of significant equity interests in us; changes in product demand and margins; macroeconomic conditions and geopolitical tensions and conflicts, including geopolitical and trade tensions between the US and China, tensions and conflict affecting Israel and the Middle East, rising tensions between mainland China and Taiwan, and the impacts of Russia's war on Ukraine; recently elevated geopolitical tensions, volatility and uncertainty with respect to international trade policies, including tariffs and export controls, impacting our business, the markets in which we compete and the world economy; the evolving market for products with AI capabilities; our complex global supply chain, including from disruptions, delays, trade tensions and conflicts, or shortages; product defects, errata and other product issues; potential security vulnerabilities in our products; increasing and evolving cybersecurity threats and privacy risks; IP risks including related litigation and regulatory proceedings; the need to attract, retain and motivate key talent; strategic transactions and investments; sales-related risks, including customer concentration and the use of distributors and other third parties; our debt obligations and our ability to access sources of capital; complex and evolving laws and regulations across many jurisdictions; catastrophic events; fluctuations in currency exchange rates; changes in our effective tax rate; environmental, health, safety, and product regulations; and other risks and uncertainties described in this presentation, our earnings release dated April 23, 2026, most recent Annual Report on Form 10-K and other filings with the SEC.

Unless specifically indicated otherwise, the forward-looking statements in this presentation do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this presentation. All information in this presentation reflects management's views as of April 23, 2026, unless an earlier date is specified. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

Tangible Progress Building the New Intel

Customer-centric, Engineering-focused; New and deepened customer relationships

Intel CPUs Foundational to Inference and Agentic

CPU-to-Accelerator ratio narrowing; CPU is the AI compute at the Edge

AI Driving Demand for Silicon and Advanced Packaging

Better Intel 18A yields; More Intel 14A progress; Growing Advanced Packaging backlog

6th Consecutive Quarter Exceeding Expectations

Strong demand; Disciplined execution; Improving factory output

Revenue

Up 7.2% YoY

$1.4B above Jan outlook 1

Gross Margin 2

EPS 2

Up $0.16 YoY 2

$0.29 above Jan outlook 1

Up 1.8 ppts YoY 2

6.5 ppts above Jan outlook 1

Comparisons are based on the mid-point of revenue outlook

Non-GAAP results shown; GAAP gross margin 39.4%, up 2.5 ppts YoY; GAAP EPS $(0.73), down $0.54 YoY; reconciliations in Appendix

($B)

$12.7

$12.9

$13.7

$13.6

39.2%

40.0%

41.0%

37.9%

29.7%

$0.7

$1.5

$1.2

$1.7

-$0.5

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Revenue

GM% (non-GAAP) 1

Op Income/Loss (non-GAAP) 2

Above seasonal Q1 on strong execution and growing supply

AI businesses grew double digits YoY

Rapid decision-making leading to better results

Above seasonal Q1 on strong execution and growing supply

AI businesses grew double digits YoY

Rapid decision-making leading to better results

1 GAAP GM%: Q1'25 36.9%, Q2'25 27.5%, Q3'25 38.2%, Q4'25 36.1%, Q1'26 39.4%

2 GAAP Op Income/(Loss) $B: Q1'25 ($0.3), Q2'25 ($3.2), Q3'25 $0.7, Q4'25 $0.6, Q1'26 ($3.1)

Resilient demand despite growing inflationary pressure

Series 3 is the best product launch in five years

Series 3 in market with enthusiast, creator, commercial, and mainstream

($B)

$7.6

$7.9

$8.5

$8.2

$7.7

30.9%

32.6%

26.1%

31.6%

27.0%

$2.4

$2.1

$2.7

$2.2

$2.5

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Segment Revenue

Segment Op Income/(Loss)

Segment OM%

Resilient demand despite growing inflationary pressure

Series 3 is the best product launch in five years

Series 3 in market with enthusiast, creator, commercial, and mainstream

Double-digit YoY growth expected to continue

Multiple long-term supply agreements with key customers

ASIC revenue nearly doubled year-over-year

($B)

$4.7

$5.1

$4.1

$3.9

$4.1

30.5%

26.4%

23.4%

13.9%

16.1%

$1.5

$0.6

$1.0

$1.3

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Segment Revenue

Segment Op Income/(Loss)

Segment OM%

Double-digit YoY growth expected to continue

Multiple long-term supply agreements with key customers

ASIC revenue nearly doubled year-over-year

Intel 7/4/3 improved output and productivity

Intel 18A and 14A progress ahead of expectations

Expanding advanced packaging capacity to support committed demand

($B)

$5.4

$4.7

$4.4

$4.2

$4.5

-$2.3

-$3.2

-$2.3

-$2.5

-$2.4

-49.7%

-45.0%

-54.8%

-55.7%

-71.7%

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

Segment Revenue

Segment Op Income/(Loss)

Segment OM%

Intel 7/4/3 improved output and productivity

Intel 18A and 14A progress ahead of expectations

Expanding advanced packaging capacity to support committed demand

Mobileye delivered a strong first quarter

IMS backlog on mask writing tools improving

Altera deconsolidated in Q3'25

All Other

($M)

$1,053

$943

$993

$628

10.9%

6.6%

10.1%

$574

16.2%

-1.4%

$103

$69

$100

$102

Q1'25

Q2'25

Q3'25

-$8

Q4'25

Q1'26

Segment Revenue

Segment Op Income/(Loss)

Segment OM%

Mobileye delivered a strong first quarter

IMS backlog on mask writing tools improving

Altera deconsolidated in Q3'25

The "All Other" category includes the results of operations from other non-reportable segments including our Mobileye business, our IMS business, start-up businesses that support our initiatives, and historical results of operations from divested businesses, including Altera. Altera's results were included within "All Other" for all periods presented through September 11, 2025.

Q2 2026 Outlook

$13.8-14.8B

Revenue

39.0%

Gross Margin 1

$0.20

EPS 1

Up $1.4B YoY 2 Up 9.3 ppts YoY 2 Up $0.30 YoY 2

Non-GAAP Gross Margin and non-GAAP EPS guidance provided; reconciliations in Appendix

Revenue growth comparison, non-GAAP gross margin outlook and non-GAAP EPS attributable to Intel outlook based on the mid-point of the revenue range

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

(In Billions, Except Percentages and Per Share Amounts)

GAAP gross margin percentage

36.9%

27.5%

38.2%

36.1%

39.4%

Acquisition-related adjustments

0.9%

0.8%

0.7%

Share-based compensation

1.4%

1.3%

1.0%

0.9%

Non-GAAP gross margin percentage

39.2%

29.7%

40.0%

37.9%

41.0%

GAAP operating income (loss)

$(0.3)

$(3.2)

$0.7

$0.6

$(3.1)

Acquisition-related adjustments

0.1

Share-based compensation

0.7

0.5

0.6

Restructuring and other charges

0.2

1.9

0.2

4.1

Non-GAAP operating income (loss)

$0.7

(0.5)

$1.5

$1.2

$1.7

GAAP earnings (loss) per share attributable to Intel - diluted

$(0.19)

$(0.73)

Acquisition-related adjustments

0.03

0.02

Share-based compensation

0.16

0.12

Restructuring and other charges

0.04

0.80

(Gains) losses on equity investments, net

0.03

0.01

(Gains) losses from divestiture

0.02

(Gains) losses on mark-to-market of Escrowed Shares1

0.21

Adjustments attributable to non-controlling interest

(0.01)

(0.17)

Income tax effects2

0.05

0.03

Non-GAAP earnings (loss) per share attributable to Intel - diluted

$0.13

$0.29

Escrowed Shares refer to shares of Intel common stock held in escrow to be released to the U.S. Department of Commerce (DOC) as we perform and receive cash proceeds in connection with our CHIPS Act Secure Enclave agreement.

Income tax effects are calculated using a fixed long-term projected tax rate. For 2026 and 2025, we determined the projected non-GAAP tax rates to be 11% and 12%, respectively.

Q2 2026 Outlook1

Q2 2025 Actuals

Approximately

GAAP gross margin percentage

37.5%

27.5%

Acquisition-related adjustments

0.7%

0.8%

Share-based compensation

0.8%

1.3%

Non-GAAP gross margin percentage

39.0%

29.7%

GAAP earnings (loss) per share attributable to Intel-diluted

$0.08

$(0.67)

Acquisition-related adjustments

0.02

0.03

Share-based compensation

0.12

0.15

Restructuring and other charges

0.01

0.43

(Gains) losses on equity investments, net

(0.11)

Adjustments attributable to non-controlling interest

(0.01)

Income tax effects2

(0.02)

0.07

Non-GAAP earnings (loss) per share attributable to Intel-diluted

$0.20

$(0.10)

Non-GAAP gross margin percentage and non-GAAP earnings (loss) per share attributable to Intel outlook based on the mid-point of the revenue range.

Income tax effects are calculated using a fixed long-term projected tax rate. For 2026 and 2025, we determined the projected non-GAAP tax rates to be 11% and 12%, respectively.

(In Billions)

GAAP net cash provided by (used for) operating activities

Q1 2026

$1.1

Additions to property, plant, and equipment (gross capital expenditures)

(5.0)

Proceeds from capital-related government incentives

0.1

Partner contributions, net

2.0

Payments on finance leases

(0.2)

Adjusted free cash flow

$(2.0)

Disclaimer

Intel Corporation published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 20:07 UTC.