INTC · Intel Corporation

Intel's Q1 2026 results showed revenue growth of 7% YoY to $13.6 billion, marking the sixth consecutive quarter above expectations, driven by strong performance in Intel Products (up 9% to $12.8B) and Intel Foundry (up 16% to $5.4B). Data Center and AI revenue surged 22% to $5.1B, reflecting the essential role of CPUs in AI inference and agentic applications, while Client Computing Group grew modestly 1% to $7.7B. GAAP gross margin improved 2.5 points to 39.4%, but operating expenses ballooned due to $4.07B in restructuring charges, leading to a GAAP operating loss of (23.1)% versus (2.4)% last year. Non-GAAP metrics were healthier, with gross margin at 41.0% and operating margin expanding to 12.3%. CEO Lip-Bu Tan highlighted a 'deliberate reset' in operations and new AI partnerships with Google, NVIDIA, and SambaNova, alongside product launches like Intel Xeon 6 and Core Ultra series. CFO David Zinsner emphasized supply expansion to meet silicon demand. Q2 guidance projects revenue growth to $13.8-14.8B, with non-GAAP EPS of $0.20, signaling continued momentum amid AI tailwinds. Cash from operations reached $1.1B, supporting strategic moves like repurchasing the 49% minority stake in Fab 34 Ireland, bolstering the balance sheet.