Intel Q1 Earnings Beat, Raises Outlook
Intel Q1 earnings beat as Data Center AI demand lifted revenue; raised Q2 guidance and improving non-GAAP profit should support near-term chip stock flows.
KEY TAKEAWAYS
- Q1 revenue $13.6 billion, up 7.0% and above roughly $12.4 billion consensus.
- Data Center and AI sales rose 22.0% to $5.1 billion, underpinning regained non-GAAP profitability.
- Q2 revenue guidance $13.8 billion to $14.8 billion, above consensus and reflecting server-chip demand.
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Intel Corporation reported stronger-than-expected first-quarter earnings on April 23, 2026, and forecast second-quarter revenue above Wall Street estimates as demand for server chips in Data Center and AI markets supported a rebound in non-GAAP profitability.
Quarter Results and Profitability
Intel posted first-quarter 2026 revenue of $13.6 billion, a 7.0% increase from $12.7 billion a year earlier, surpassing analysts’ roughly $12.4 billion forecast. Intel Products revenue rose 9.0% to $12.8 billion. Sales to Data Center and AI customers jumped 22.0% to $5.1 billion, while the Client Computing Group generated $7.7 billion, up 1.0% year over year.
GAAP gross margin expanded to 39.4% from 36.9%, and non-GAAP gross margin reached 41.0%. On a non-GAAP basis, Intel reported net income of $1.5 billion, with diluted earnings per share of $0.29, more than doubling from $0.13 a year earlier. Non-GAAP operating margin widened to 12.3% from 5.4%.
The GAAP results showed a net loss of $3.7 billion, or a diluted loss per share of $(0.73), reflecting $4.1 billion in restructuring and other charges, including a Mobileye goodwill impairment. Operating cash flow was $1.1 billion, while adjusted free cash flow was negative $2.0 billion.
Guidance and AI Demand
Intel filed an 8-K reporting second-quarter revenue guidance of $13.8 billion to $14.8 billion, exceeding the roughly $13.0 billion consensus. For the quarter ending June 2026, the company projected GAAP diluted EPS of $0.08 and non-GAAP diluted EPS of $0.20, with GAAP gross margin at 37.5% and non-GAAP gross margin at 39.0%.
The company attributed the outlook to strong server-chip demand from artificial-intelligence data centers. The revenue beat, expanded non-GAAP margins, and raised guidance highlight accelerating demand for Intel’s server chips in AI data centers despite the sizable GAAP restructuring charges.
