Intel Corporation Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 2026 marked Intel’s sixth straight quarter beating revenue, gross margin, and EPS guidance.
  • Revenue of $13.6B was $1.4B above the midpoint of guidance and driven by robust demand that continues to exceed supply.
  • Non-GAAP gross margin was 41%, up ~650 bps vs. guidance and significantly above Q4 2025 levels due to improved yields, mix, and pricing.
  • Non-GAAP EPS of $0.29 exceeded breakeven guidance. Included a $0.06 one-time gain.
  • AI-related businesses now represent 60% of revenue and grew 40% YoY.

Business Context and Strategic Positioning

  • CPU demand is strengthening as AI inference and agentic workloads shift back toward CPU-centric architectures.
  • Server CPU deployments are trending from historic GPU:CPU ratios of 8:1 toward 4:1 and potentially closer to parity for emerging agentic workloads.
  • Intel 3-based Xeon 6 and Intel 18A-based Core Series 3 are in full-volume ramp, the company’s fastest in 5 years.
  • Intel Foundry is improving yields on Intel 4, 3, and 18A, with 18A ahead of internal projections.
  • Intel 14A development is ahead of schedule with customer engagements underway; design commitments expected to begin in 2H 2026–1H 2027.

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Operator: Thank you for standing by, and welcome to the Intel Corporation First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. John Pitzer, Corporate Vice President of Investor Relations. Please go ahead, sir. John Pitzer: Thank you, Jonathan, and good afternoon to everyone joining us today. By now, you should have received a copy of the Q1 earnings release and earnings presentation, both of which are available on our Investor Relations website, intc.com. For those joining us online today, the earnings presentation is also available in our webcast window. I am joined today by our CEO, Lip-Bu Tan; and by our CFO, David Zinsner. Lip-Bu will open with comments on first quarter results as well as provide an update on the progress we're making on our strategic priorities. Dave will then discuss our overall financial results, including second quarter guidance before we transition to answer your questions. Before we begin, please note that today's discussion does contain forward-looking statements based on the environment as we currently see it, and as such, are subject to various risks and uncertainties. It also contains references to non-GAAP financial measures that we believe provide useful information to our investors. Our earnings release, most recent annual report on Form 10-K and other filings with the SEC provide more information on specific risk

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