Intel (INTC) Q1 2026: Earnings & Growth Story

INTC · NASDAQ · Q1 2026 · 2026-07-23

Period ended 2026-03-28 · Based on the latest SEC filing

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Flash Briefing3 things you need to know

⚡

Top Surprise

Total revenue reached $13.577 billion in Q1 2026, exceeding expectations with a 7.3% year-over-year growth.

🚨

Hidden Risk

A significant non-cash goodwill impairment charge of $3.9 billion related to Mobileye was recorded due to increased discount rates affecting projected cash flows.

🔭

Key Variable to Watch

Investors should monitor Mobileye’s market performance and revenue contributions closely, as they are critical to Intel's growth narrative moving forward.

Key Metrics at a GlanceQ1 2026

Revenue

$13.6B

↑+7.3%vs $12.7B

Operating Income

($3.1B)

↓N/Avs ($0.3B)

Net Income

($4.3B)

↓N/Avs ($0.9B)

Diluted EPS

($0.73)

↓N/Avs ($0.19)

Operating Cash Flow

($4.3B)

↓N/Avs ($0.9B)

Revenue Breakdown by Segment

CCG

$7.6B+1.3%

56%

DCAI

$4.1B-1.5%

30%

All Other

$0.6B-33.5%

4.4%

Mobileye

$0.6B+27.4%

4.4%

⚠️Earnings Quality Alert

•Cash conversion: The consistency between net income and cash flow from operations supports quality earnings visibility.(Operating cash flow is negative at $(4.281) billion compared to net income of $(4.281) billion, indicating total cash loss from operations.)

Flash Briefing

⚡ Top Surprise: Total revenue reached $13.577 billion in Q1 2026, exceeding expectations with a 7.3% year-over-year growth.

🚨 Hidden Risk: A significant non-cash goodwill impairment charge of $3.9 billion related to Mobileye was recorded due to increased discount rates affecting projected cash flows.

🔭 Key Variable: Investors should monitor Mobileye’s market performance and revenue contributions closely, as they are critical to Intel's growth narrative moving forward.

Company Growth Story

Intel's Q1 2026 results indicate a critical juncture for the company amidst a mixed operating environment.

While revenues increased to $13.577 billion, a 7.3% year-over-year growth, the company is still grappling with significant operational challenges.

Mobileye's performance is crucial given the $3.9 billion impairment charge, suggesting vulnerability within this segment.

Investors should focus on product innovation and market positioning amid ongoing supply constraints that have restricted Intel's ability to fully capitalize on demand.

Financial Health & Operating Reality

Metric	Q1 2026	Prior Year	Change
Revenue	$13.577B	$12.667B	+7.3%
Gross Margin	39.4%	36.9%	+2.5pp
Operating Income	$(3.136)B	$(0.301)B	N/A
Net Income	$(4.281)B	$(0.887)B	N/A
Diluted EPS	($0.73)	($0.19)	N/A
Operating Cash Flow	$(4.281)B	$(0.887)B	N/A

Scenario Tree

	🐂 Bull Case	📊 Base Case	🐻 Bear Case
Key Assumption	Strong demand recovery in Mobileye and semiconductor sectors	Steady growth with manageable risks	Sustained operational and market challenges
Validates when	Market conditions stabilize and demand exceeds expectations	Current guidance is met	Continued losses in key segments persist
Invalidates when	Competition hinders growth potential	Supply chain issues worsen	Additional impairment charges arise
12–36m Outlook	Positive profit recovery expected	Moderate profitability potential	Significant market share losses likely

Management Tone Analysis

Market Conditions: Caution
Quote: "heightened geopolitical risks associated with operations in the Middle East"
Mobileye Performance: Concern
Quote: "uncertainty related to Mobileye's evolving competitive landscape"

Cross-Validation

N/A