Intel incurs $3.7bn Q1 loss while AI segment revenue rises 22%
Intel posted a $3.7bn Q1 net loss driven by $4.07bn in impairment charges, widening EPS loss to $0.73 from $0.19 a year ago. Revenue rose 7% to $13.6bn with a 39.4% gross margin; DCAI revenue grew 22% to $5.1bn and Foundry Services jumped 16% to $5.4bn.
1. Q1 2026 Financial Results
Intel reported a $3.7bn net loss for Q1 2026, compared with an $800m loss a year earlier, driven by $4.07bn in restructuring and impairment charges. Earnings per share declined to a $0.73 loss from $0.19, while revenue climbed 7% to $13.6bn and gross margin improved to 39.4%.
2. Segment Performance
Client Computing Group revenue edged up 1% to $7.7bn. Data Center and AI revenue jumped 22% to $5.1bn, and Foundry Services revenue rose 16% to $5.4bn, while other segments fell 33% to $600m. Operating margin slid to negative 23.1%.
3. Cash Flow and Product Launches
Operations generated $1.1bn in cash during the quarter. Intel expanded its processor lineup with launches including the Xeon 600 for workstations and Core Ultra 200S Plus, 200HX Plus, and Core Series 2 chips for desktop, mobile, and edge computing in health and life sciences.
4. Q2 2026 Guidance
GAAP revenue is forecast between $13.8bn and $14.8bn with a 37.5% gross margin. Non-GAAP gross margin is projected at 39.0%, with EPS guidance of $0.08 on a GAAP basis and $0.20 non-GAAP, assuming an 11% tax rate.