GoKawiilIntel on Thursday published its financial results for the first quarter, and its stock rocketed 28% in after-hours trading, hitting an all-time high of $80.01. The results saw Intel significantly beating its own outlook by $1.4 billion due to rising demand for data center-grade CPUs, decent demand for client products, and increased output and productivity at Intel's own fabs. Despite results that are well above seasonality, the company still posted a rather massive $3.7 billion loss as it wrote down Mobileye goodwill and restructuring charges. However, the results can be considered positive as on a non-GAAP basis, the company recorded $1.5 billion in net income.
"We delivered robust Q1 results, reflecting the growing and essential role of the CPU in the AI era and unprecedented demand for silicon, as well as our disciplined execution to expand available supply," said David Zinsner, Intel CFO. "We remain focused on maximizing our factory network to improve available supply and meet our customers’ needs throughout the year."
(Image credit: Intel)
In the first quarter of 2026, Intel earned $13.6 billion in revenue, up 7% year-over-year (YoY), and flat with the fourth quarter of 2025, meaning that the results are well above seasonality. The company's R&D and SG&A expenses totaled $4.4 billion, down 8% from $4.8 billion in the same quarter a year ago, whereas its gross margin increased to 39.4% from 36.9% in Q1 2025. In addition, Intel generated $1.1 billion in cash from operations. Nonetheless, the company recorded a $3.7 billion GAAP loss in the first quarter of 2026, up massively from $800 million in Q1 2025.
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(Image credit: Intel)
However, the loss is a result of a $4.07 billion 'restructuring and other charge,' which includes a $3.447 billion (primarily) Mobileye goodwill impairment charge and $623 million restructuring and other charges. That said, the losses were largely driven by accounting charges required under GAAP, rather than weakness in Intel’s core product business, although the company’s foundry division continues to generate significant operating losses.
Intel Products: Better than before, worse than could have been
At a high level, Intel's product business is clearly stabilizing. Among improved demand, the company attributes its improved business results to higher output and productivity of its own fabs that make chips on its Intel 7/4/3 process technologies. Nonetheless, Intel admits that it cannot meet all the demand, which limits its growth.
(Image credit: Intel)
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