Intel Stock Earnings Reports

Key investor takeaways:

- Strong quarter and execution: Q1 revenue $13.6B (about $1.4B above the midpoint of guide) and non-GAAP EPS $0.29 vs guidance of breakeven. This marks the sixth consecutive quarter of beating expectations. Non-GAAP gross margin was ~41% (about 650 bps above guide).

- AI is driving the business: Management says AI-related businesses now represent ~60% of revenue and grew ~40% year-over-year. Xeon/server CPU demand is described as strong and sustained, with management expecting double-digit unit growth for servers this year and momentum into 2027.

- Product ramps and manufacturing progress: Intel 3-based Xeon 6 and Intel 18A-based Core Series 3 are in full volume production and are among the fastest ramps in 5 years. Foundry yields (Intel 4, 3, 18A) have improved and 14A is maturing with customer evaluations; earlier design commitments expected H2 2026 into H1 2027.

- Foundry & advanced packaging: External foundry revenue remains small ($174M in Q1) but foundry output/yields improved and advanced packaging backlog grew; management sees advanced packaging opportunity at the multibillion-dollar per-year level for customers.

- Cash flow, CapEx and capital actions: Q1 operating cash flow $1.1B, adjusted free cash flow ~ -$2B. 2026 CapEx expected to be roughly flat to last year (tool spend rising ~25% YoY while space spend declines). Intel repurchased the 49% interest in Fab 34 (funded with ~$7.7B cash and ~$6.5B debt). Management expects positive adjusted free cash flow for the full year excluding the Fab 34 buyout. They remain committed to retiring near-term maturities.

- Q2 and 2026 outlook and risks: Q2 revenue guide $13.8B–$14.8B (midpoint $14.3B), non-GAAP gross margin ~39% and EPS ~$0.20. Management is prudently planning for PC TAM weakness (industry PC units expected down low double-digits for the year) but expects server strength to offset. Key risks: rising input costs (memory, wafers, substrates), macro/geopolitical uncertainty, and that Intel 18A is still early in ramp and weighs on near-term margin.

- Commercial traction and LTAs: Multiple multiyear agreements (including Google) were signed in Q1 for CPUs and ASICs, giving better forward visibility on volumes/pricing.

Overall: The company emphasizes improving execution, strong AI-driven demand—particularly for CPUs/Xeon—meaningful foundry and packaging progress, and a disciplined but growth-supporting capital plan, while noting near-term margin headwinds from early-node mix and rising material costs.