Balancing growth and losses, Intel reports higher revenue on AI demand, expands partnerships and product launches, while margins and net losses highlight ongoing transition pressures.
Intel reported first-quarter 2026 revenue of $13.6 billion, a 7 per cent year-on-year increase, as demand for artificial intelligence (AI) and data centre workloads supported its core businesses.
However, the company posted a net loss of $3.7 billion under GAAP, compared with a loss of $0.8 billion a year earlier, while non-GAAP net income rose to $1.5 billion.
Earnings per share stood at a loss of $0.73 on a GAAP basis, while adjusted earnings reached $0.29 per share. The company generated $1.1 billion in operating cash during the quarter. Gross margin improved to 39.4 per cent from 36.9 per cent a year earlier, while operating margin declined sharply to negative 23.1 per cent. Research and development (R&D) and administrative expenses fell 8 per cent to $4.4 billion.
Meanwhile, performance across business segments was mixed. The Client Computing Group reported revenue of $7.7 billion, up 1 per cent, while the Data Center and AI segment grew 22 per cent to $5.1 billion.
Intel Foundry recorded $5.4 billion in revenue, an increase of 16 per cent. The ‘all other’ segment declined 33 per cent, partly reflecting the deconsolidation of Altera following the sale of a majority stake in September 2025.
During the quarter, Intel introduced several new processors across the desktop, mobile, and workstation categories and expanded its presence in AI infrastructure. The company announced collaborations with Google to deploy Xeon processors in cloud workloads, and with NVIDIA, whose DGX Rubin systems will use Intel CPUs as host processors.
It also outlined joint work with SambaNova Systems on integrated hardware architectures combining multiple compute technologies.
Intel has also joined the Terafab project, alongside SpaceX, xAI, and Tesla, to advance semiconductor manufacturing methods. Separately, the company expanded assembly and test operations in Malaysia and repurchased a minority stake in its Ireland-based Fab 34 facility.
Looking ahead, Intel expects second-quarter revenue to range between $13.8 billion and $14.8 billion, with projected GAAP earnings per share of $0.08 and non-GAAP earnings of $0.20.
