Intel has reported a net loss of $3.7bn for the first quarter of 2026 (Q1 2026), a substantial increase from the $800m net loss recorded in the same period last year, owing to $4.07bn in restructuring and impairment charges.
The earnings per share (EPS) attributable to Intel was a loss of $0.73, a decline from the loss of $0.19 per share reported in the first quarter of 2025. Despite the loss, the company’s revenue for the quarter rose by 7% to $13.6bn, compared to $12.7bn in the prior-year period.
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The gross margin improved to 39.4%, up from 36.9% in the previous year, reflecting a 2.5%-point increase. However, operating income showed a significant downturn, with a loss of $3.1bn compared to a loss of $301m in the prior year. This resulted in an operating margin of negative 23.1%, a marked decrease from negative 2.4%.
Intel’s Client Computing Group (CCG) reported revenue of $7.7bn, representing a 1% increase from the previous year.
The Data Center and AI (DCAI) segment experienced a 22% growth, with revenue reaching $5.1bn. Total Intel Products revenue rose by 9% to $12.8bn.
Intel Foundry Services generated $5.4bn in revenue, marking a 16% increase from the previous year. Conversely, revenue from all other segments decreased by 33% to $600m.
The company generated $1.1bn in cash from operations during the quarter.
Intel CEO Lip-Bu Tan said: “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.
“With a solid foundation in place, we are addressing this opportunity by listening to our customers and driving their success with our technical expertise and differentiated IP. This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations, as well as new and deepened relationships with strategic partners.”
For the second quarter of 2026, Intel’s guidance includes GAAP revenue estimates between $13.8bn and $14.8bn, with a gross margin of 37.5%.
The non-GAAP gross margin is projected at 39.0%, with a tax rate of 11%. Earnings per share are expected to be $0.08 on a GAAP basis and $0.20 on a non-GAAP basis.
In terms of business highlights during the quarter, Intel expanded its client portfolio with the launch of several new processors. These include the Intel Xeon 600 for workstations, Intel Core Ultra 200S Plus and Intel Core Ultra 200HX Plus for desktop and mobile, and Intel Core Series 2 for health and life sciences edge computing.
Additionally, Intel introduced the Intel Core Ultra Series 3 processors with Intel vPro and the Intel Core Series 3 processors, which bring Intel 18A and modern features to the mainstream market.
The reported quarter also saw Intel and Google announce a multiyear collaboration to deploy Intel Xeon processors across the latter’s workload-optimised instances, including the latest Intel Xeon 6 processors.
The partnership also involves co-developing custom ASIC infrastructure processing units (IPUs) to enhance AI workload efficiency. Furthermore, Intel Xeon 6 was selected as the host CPU for Nvidia’s DGX Rubin NVL8 systems.
Intel also joined the Terafab project as a strategic partner alongside SpaceX, xAI, and Tesla, aiming to advance silicon fab technology. Furthermore, the semiconductor firm expanded its foundry assembly and test capacity during the quarter in Penang, Malaysia, to meet rising global demand for packaging solutions.
