AI Takeaway
Intel reported Q1 2026 revenue of $13.6B (+7.2% YoY) but swung to a deep operating loss of -$3.1B and net loss of -$3.7B, reflecting heavy restructuring and impairment charges that overwhelmed improving gross margins.
Revenue
$13.58B
++7.18% YoY
EPS (Basic)
$-0.73
-284.21% YoY
Gross Margin
39.4%
++2.50% YoY
Operating Income
$-3.14B
-941.86% YoY
Filed · Source: SEC EDGAR 10-Q filing
Intel's Q1 2026 revenue rose 7.2% YoY to $13.58B from $12.67B, suggesting early signs of demand stabilization across its product segments after a prolonged downturn.
Source: Source: 10-Q Income Statement
Gross margin improved meaningfully to 39.4% from 36.9% a year ago (+2.5 percentage points), driven by a slower 2.9% YoY rise in cost of revenue versus the 7.2% revenue growth, indicating better manufacturing efficiency or product mix.
Source: Source: 10-Q Income Statement
Operating income collapsed to -$3.14B from -$301M in Q1 2025, a -941.9% deterioration, likely driven by large restructuring, impairment, or one-time charges below the gross profit line rather than core business deterioration.
Source: Source: 10-Q Income Statement
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Upgrade to unlockIntel's operating margin deteriorated to -23.1% in Q1 2026 from -2.4% a year ago, and net loss widened to -$3.73B. If restructuring charges and operational headwinds persist, the company's ability to return to sustained profitability remains uncertain.
Source: Source: 10-Q Income Statement
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Upgrade to unlockReported EPS of $0.29 versus the $0.01 analyst consensus — a +1971.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $13.58B | $12.67B | +7.18% |
Cost of Revenue | $8.23B | $8B | +2.94% |
Gross Profit | $5.35B | $4.67B | +14.45% |
Operating Income | $-3.14B | $-301M | -941.86% |
Net Income | $-3.73B | $-821M | -354.08% |
EPS (Basic) | $-0.73 | $-0.19 | -284.21% |
EPS (Diluted) | $-0.73 | $-0.19 | -284.21% |
R&D Expense | $3.38B | $3.64B | -7.28% |
SG&A Expense | $1.04B | $1.18B | -11.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $205.33B | $192.24B | +6.81% |
Current Assets | $62.16B | $42.13B | +47.52% |
Current Liabilities | $26.89B | $32.17B | -16.44% |
Stockholders' Equity | $111.39B | $99.76B | +11.67% |
Cash & Equivalents | $17.25B | — | — |
Long-Term Debt | $43.03B | $44.91B | -4.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.1B | $813M | +34.81% |
Investing Cash Flow | $3.09B | $81M | +3718.52% |
Financing Cash Flow | $-1.21B | $-196M | -515.31% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 39.4% | 36.9% | +2.50% |
Operating Margin | -23.1% | -2.4% | -20.72% |
Net Margin | -27.5% | — | — |
ROE | -3.3% | — | — |
ROA | -1.8% | — | — |
Current Ratio | $2.312 | — | — |
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Intel reported a net loss of -$3.73B and EPS of -$0.73 in Q1 2026, significantly worse than the -$821M net loss and -$0.19 EPS in Q1 2025. Whether this beat or missed Wall Street consensus estimates would depend on analyst forecasts, but the sharp YoY deterioration in earnings was driven largely by what appear to be substantial one-time charges.
The headline takeaway is that Intel's revenue grew 7.2% YoY to $13.58B and gross margins improved to 39.4%, showing operational progress, but a massive operating loss of -$3.14B (vs. -$301M a year ago) dominated the results. The company also demonstrated cost discipline, cutting R&D by 7.3% and SG&A by 11.8%, while maintaining a strong liquidity position with $17.2B in cash and a current ratio of 2.31.
Intel's net loss of -$3.73B in Q1 2026 was primarily driven by a dramatic deterioration in operating income to -$3.14B from -$301M a year ago, despite gross profit actually improving 14.4% YoY. This suggests large non-cash or one-time charges — such as restructuring costs, asset impairments, or write-downs — were recorded below the gross profit line, rather than a fundamental collapse in the core business.
Intel's short-term liquidity is solid, with $17.2B in cash, a current ratio of 2.31, and current assets of $62.2B far exceeding current liabilities of $26.9B. However, the company carries $43.0B in long-term debt and is generating negative ROE (-3.35%) and ROA (-1.82%), meaning its long-term financial health depends on successfully executing its turnaround and returning to sustained profitability.
Yes, Intel's Q1 2026 revenue grew 7.2% year-over-year to $13.58B, up from $12.67B in Q1 2025. This marks a positive revenue trend, though the company's profitability remains under significant pressure due to large charges that pushed the operating margin to -23.1%.