Intel reported first‑quarter 2026 revenue of $13.6 billion, a 7% year‑over‑year increase from $12.7 billion in Q1 2025 and a slight decline from $13.7 billion in Q4 2025. Non‑GAAP earnings per share reached $0.29, a $0.28 beat over the consensus estimate of $0.01, while GAAP EPS recorded a loss of $0.73 due to restructuring charges that weighed on the bottom line.
The earnings were driven by a 22% year‑over‑year rise in Data Center and AI revenue, which totaled $5.1 billion, and a 20% sequential increase in Foundry revenue to $5.4 billion. The mix shift toward higher‑margin server products helped lift both revenue and gross margin, which reached 41% non‑GAAP, well above guidance.
Management raised its second‑quarter outlook, projecting revenue of $13.8 billion to $14.8 billion and non‑GAAP EPS of $0.20, both figures above analyst expectations. The guidance reflects confidence in sustained demand for Intel’s server CPUs and its advanced packaging capabilities, while also signaling that the company is managing costs and improving yields on its 18A process.
"We delivered robust Q1 results, reflecting the growing and essential role of the CPU in the AI era and unprecedented demand for silicon, as well as our disciplined execution to expand available supply," said CFO David Zinsner. "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," added CEO Lip‑Bu Tan.
Intel’s performance underscores a tailwind from AI infrastructure demand, but the company faces headwinds from rising input costs, particularly in memory, and the ongoing ramp of new process nodes such as 18A, which initially incurs higher costs. The results reinforce Intel’s narrative of a successful turnaround driven by AI demand and strategic execution, while the GAAP loss highlights the impact of restructuring charges on the company’s financials.
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