Intel Reports Q1 2026 Financial Results with $13.6 Billion Revenue and $3.7 Billion Net Loss

Intel Corporation reported its financial results for the first quarter of 2026, revealing a net revenue of $13.6 billion, an increase of 7.2% from $12.7 billion in the same period last year. The company experienced a gross profit of $5.3 billion, up from $4.7 billion, reflecting a gross margin of 39.4%. However, Intel recorded a significant operating loss of $3.1 billion, compared to a loss of $301 million in the prior year, primarily due to restructuring charges and a $3.9 billion goodwill impairment related to its Mobileye reporting unit. The net loss attributable to Intel was $3.7 billion, or $(0.73) per share, compared to a loss of $821 million, or $(0.19) per share, in the previous year.

The financial performance was impacted by several strategic developments, including the completion of the acquisition of Mentee Robotics for $637 million, which is expected to enhance Intel's capabilities in AI and robotics. Additionally, the company announced the repurchase of Apollo's 49% minority interest in its Ireland Semiconductor Co-Investment Program (SCIP) for approximately $14.2 billion, which will be reflected in the second quarter of 2026. This acquisition is part of Intel's broader strategy to consolidate its manufacturing capabilities and enhance its competitive position in the semiconductor market.

Operationally, Intel's Client Computing Group (CCG) generated $7.7 billion in revenue, a slight increase from the previous year, while the Data Center and AI (DCAI) segment saw a more substantial rise, with revenue reaching $5.1 billion, up 22% year-over-year. The increase in DCAI revenue was driven by higher average selling prices (ASPs) for server products, despite a decrease in unit volumes due to supply constraints. The Intel Foundry segment reported revenue of $5.4 billion, up from $4.7 billion, although it continued to operate at a loss.

Looking ahead, Intel anticipates ongoing supply constraints that may limit its ability to meet customer demand throughout 2026. The company is focused on ramping production on its new 18A process node to alleviate these constraints. Additionally, Intel's management has indicated a disciplined approach to capital deployment, emphasizing investments that promise a clear return. The company remains committed to advancing its product and process technology roadmaps while navigating the challenges posed by geopolitical tensions and market conditions.