Intel Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

Intel Corporation INTC reported strong first-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.

The company reported 7% year-over-year growth in revenues, supported by strong demand for Xeon server CPUs, AI PCs and higher 18A wafer production, along with better pricing, improved product mix, and rising advanced packaging and Application-Specific Integrated Circuit (ASIC) revenues.

Net Income

The company reported a GAAP loss of $3.73 billion or a loss of 73 cents per share compared with a net loss of $0.82 billion or a loss of 19 cents per share in the year-ago quarter. Despite higher revenues, GAAP earnings declined sharply due to higher restructuring expenses in the quarter.

Excluding non-recurring items, non-GAAP earnings in the reported quarter were $1.49 billion or 29 cents per share compared with $0.58 billion or 13 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 28 cents. 

Intel Corporation Price, Consensus and EPS Surprise

Intel Corporation price-consensus-eps-surprise-chart | Intel Corporation Quote

Revenues

GAAP revenues increased to $13.58 billion from $12.67 billion in the year-ago quarter. The company witnessed a healthy growth in its total Products and Foundry business segments. The top line beat the consensus estimate of $12.33 billion.

Segment Performance 

Client Computing Group revenues increased to $7.73 billion from $7.63 billion, driven by strong demand for client CPUs and growing adoption of AI PCs, making up more than 60% of the client CPU mix. The launch of Core Ultra Series 3 and Intel Core Series 3 processors, along with better pricing and product mix, also supported growth.

Datacenter and AI Group revenues improved to $5.05 billion from $4.13 billion, driven by strong demand for Xeon server CPUs for AI workloads, higher ASIC sales and new long-term customer deals with leading firms like Google.

While total Intel Products revenues were up to $12.78 billion from $11.76 billion, Intel Foundry revenues increased to $5.42 billion from $4.67 billion, owing to a higher Extreme Ultraviolet wafer mix supported by Intel 3 processors and significant growth in 18A. All Other revenues, which include Altera, Mobileye and other businesses, were $0.63 billion.

Other Details

Non-GAAP gross profit was $5.57 billion compared with $4.96 billion in the year-ago quarter, with respective margins of 41% and 39.2%. Non-GAAP research and development and marketing, general, and administrative expenses totaled $3.9 billion compared with $4.27 billion in the year-ago period. Non-GAAP operating income was $1.67 billion compared with $0.69 billion in the year-ago quarter, with respective margins of 12.3% and 5.4%. 

Cash Flow & Liquidity

As of March 28, 2026, Intel had cash and cash equivalents of $17.25 billion with $43.03 billion of long-term debt. In the first quarter of 2026, Intel generated $1.1 billion of cash from operating activities compared with $0.81 billion in the year-ago quarter.

Outlook

For the second quarter of 2026, Intel expects GAAP revenues to be in the range of $13.8-$14.8 billion. Non-GAAP gross margin is expected to be 39%. Non-GAAP earnings are expected to be around 20 cents per share. Non-GAAP tax rate is anticipated to be 11%.

Zacks Rank

Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Arista Networks Inc. ANET is scheduled to release first-quarter 2026 earnings on May 5. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, suggesting growth of 24.62% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 17.94%. The company delivered an average earnings surprise of 9% in the last four reported quarters.

Amphenol Corporation APH is set to release first-quarter 2026 earnings on April 29. The Zacks Consensus Estimate for earnings is pegged at 95 cents per share, implying growth of 50.79% from the year-ago reported figure.

Amphenol has a long-term earnings growth expectation of 22.17%. The company delivered an average earnings surprise of 16.48% in the last four reported quarters.

Corning Incorporated GLW is set to release first-quarter 2026 earnings on April 28. The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, implying growth of 29.63% from the year-ago reported figure.

Corning has a long-term earnings growth expectation of 22.13%. The company delivered an average earnings surprise of 4.41% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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