Revenue Recovery Gaining Traction
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: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
-$0.73
-284.21% YoY
Gross Margin
39.4%
+2.5 pts YoY
Operating Income
-$3.14B
-941.86% YoY
Source: SEC XBRL
Intel (INTC) reported Q1 FY2026 revenue of $13.58B, up 7.2% year over year. Operating margin was -23.1%, against -2.4% a year earlier. Operating cash flow was $1.1B, up 34.8% year over year. INTC's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.42 | 0.22 | Beat +92.9% |
| Mar 2026This filing | 0.29 | 0.01 | Beat +1971.4% |
| Dec 2025 | 0.15 | 0.08 | Beat +80.9% |
| Sep 2025 | 0.23 | 0.01 | Beat +2200.0% |
Adjusted (non-GAAP) EPS of $0.29 versus the $0.01 analyst consensus — a +1971.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.73.
Compiled by AI from this SEC 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: 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: 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: 10-Q Income Statement
Intel reduced R&D spending by 7.3% YoY to $3.38B and SG&A by 11.8% to $1.04B, reflecting ongoing cost-cutting initiatives as part of its broader restructuring program.
Source: 10-Q Income Statement
Current assets surged 47.5% YoY to $62.2B while current liabilities fell 16.4% to $26.9B, pushing the current ratio to a healthy 2.31 and cash & equivalents to $17.2B, providing a substantial liquidity buffer.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Intel'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: 10-Q Income Statement
Intel carries $43.0B in long-term debt, and while it declined modestly (-4.2% YoY), the combination of large debt obligations and ongoing net losses creates financial leverage risk. Servicing this debt while investing in next-generation manufacturing is a significant challenge.
Source: 10-Q Balance Sheet
Intel's strategy depends heavily on successfully ramping its Intel Foundry Services and advanced process nodes. Delays or yield issues in manufacturing transitions could further impair margins and competitive positioning against TSMC and Samsung.
Source: 10-Q Income Statement (implied from cost structure)
ROE of -3.35% and ROA of -1.82% indicate that Intel is currently destroying shareholder value on both an equity and asset basis. Sustained negative returns could erode investor confidence and limit access to capital markets.
Source: 10-Q Key Ratios
Investing cash flow turned strongly positive at $3.09B (vs. $81M prior year), which may reflect asset sales rather than reduced capex needs. Intel's foundry buildout requires massive ongoing capital investment that could strain free cash flow generation.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 13.58 $B | 12.67 $B | +7.18% |
Cost of Revenue $B | 8.23 $B | 8.00 $B | +2.94% |
Gross Profit $B | 5.35 $B | 4.67 $B | +14.45% |
Operating Income $B | -3.14 $B | -0.30 $B | -941.86% |
Net Income $B | -3.73 $B | -0.82 $B | -354.08% |
EPS (Basic) $ | -0.73 $ | -0.19 $ | -284.21% |
EPS (Diluted) $ | -0.73 $ | -0.19 $ | -284.21% |
R&D Expense $B | 3.38 $B | 3.64 $B | -7.28% |
SG&A Expense $B | 1.04 $B | 1.18 $B | -11.81% |
Answers draw on this SEC filing and the data on this page
Intel's Q2 FY2026 revenue grew 25.4% YoY to $16.13B with gross margin expanding sharply to 40.4%, but the company posted a massive net loss of $11.03B (EPS -$2.16), driven by items below the operating line since operating income was actually positive at $1.80B.
Intel's FY2025 10-K shows near-breakeven net income of -$267M (a dramatic improvement from -$18.8B in FY2024) driven by aggressive cost cuts in R&D and SG&A, even as revenue edged down 0.5% to $52.9B and the company continued to post negative operating margins.
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