Intel Stock Earnings Reports

Intel reported a strong Q1 2026: revenue $13.6B (about $1.4B above guide midpoint), non-GAAP gross margin 41% and EPS $0.29, marking the sixth consecutive quarter beating expectations. Management says demand continues to outpace supply—particularly for Xeon server CPUs—with AI-related businesses now ~60% of revenue and up ~40% YoY. Intel 3 and 18A product ramps (including Xeon 6 and Core Series 3) are in volume ramp and running faster than recent cycles; yields on 18A are ahead of internal projections. Foundry progress includes improving Intel 4/3 yields, growing 18A volume, encouraging Intel 14A engagement with early customer design activity expected H2 2026 into H1 2027, and rising advanced packaging backlog. Q2 guidance: revenue $13.8–$14.8B (midpoint $14.3B), non-GAAP gross margin ~39%, tax rate 11%, EPS $0.20. Capital spending is expected to be roughly flat year-over-year (tool spend up), with 2026 OpEx likely higher than previously targeted (~$16B directionally) due to inflation, comp and targeted investments. Near-term headwinds: 18A is still early in ramp (mix pressure on gross margin) and rising input costs (memory, substrates) could pressure margins later in the year. Management reiterated focus on increasing available wafer output via wafer starts, yield and cycle-time improvements, selective external foundry use, and capturing longer-term foundry and packaging opportunities; excluding the Fab 34 buyout, Intel still expects positive adjusted free cash flow for the full year. Key risks remain macro/geopolitical dynamics and materials cost inflation.