0000050863-26-000079
SEC filingIntel reported a net loss of $3.73B in Q1 2026, driven by a $3.9B goodwill impairment on Mobileye, though revenue grew 7% YoY to $13.58B.
Intel's Q1 2026 revenue rose 7.2% YoY to $13.58B, driven by strong DCAI server ASP growth (27% increase) and client premium mix. Gross profit improved 14.4% to $5.35B, with gross margin expanding 250 bps to 39.4%, benefiting from lower period charges (absence of $331M Gaudí AI accelerator inventory write-downs in Q1 2025). However, operating income swung to a loss of $3.14B from a $301M loss a year ago, reflecting a $3.9B non-cash goodwill impairment on Mobileye and $1.09B mark-to-market loss on Escrowed Shares. Net loss attributable to Intel was $3.73B versus $821M prior year, with EPS of -$0.73.
Total cash and short-term investments declined to $32.79B from $37.42B at year-end, primarily due to capex and the Ireland SCIP repurchase (closed April 8, 2026 for $14.2B, funded partly via $6.5B term loan). Debt decreased $1.5B with repayment of senior notes. Inventories rose 7% to $12.43B, reflecting work-in-process build for 18A ramp. Goodwill dropped to $20.47B from $23.91B, substantially from Mobileye impairment.
Operating cash flow was $1.10B, compared to $0.81B in the prior year, driven by lower expenses and non-cash add-backs (depreciation $2.90B, share-based comp $0.62B). CFO exceeded net loss (excluding non-cash items). Capex of $3.64B (26.8% of sales) was down from $5.18B a year ago, reflecting disciplined capital deployment. Free cash flow was -$2.54B. Financing activities included $2.06B of partner contributions (SCIP) and debt repayment.
Management highlighted restructuring actions (2025 Plan) expected to reduce R&D and MG&A expenses in 2026. Supply constraints on client and server products are expected to persist at least through H1 2026, with 18A ramp intended to mitigate. The company continues to evaluate Intel 14A node development; if insufficient committed demand, development may be paused. Capital spending is being disciplined toward acceptable returns. The Ireland SCIP repurchase closed post-quarter ending minority sharing.
Intel Products (CCG + DCAI) operating income rose 38% to $4.06B, with DCAI more than doubling op income to $1.54B on strong server revenue and lower period charges. Intel Foundry operating loss widened $117M to $2.44B due to higher 18A wafer costs, partially offset by higher Intel 3/4 volume. All Other revenue fell 33% due to Altera's deconsolidation in Q3 2025; Mobileye revenue grew $120M. Goodwill impairment of $3.9B was driven by Mobileye's increased discount rate and competitive uncertainty. Derivative liabilities include Escrowed Shares ($3.6B) and Ireland SCIP termination fees ($532M). The effective tax rate was -8.5%, impacted by domestic valuation allowance.