Intel’s first quarter results were positively received by the market, with management attributing this to robust demand for its server CPUs and broad progress in advanced manufacturing. CEO Lip Bu Tan highlighted that persistent supply constraints, especially for Xeon server processors, were met with improved factory output and rapid production ramps of Intel 3–based Xeon 6 and 18A–based Core Series 3. The quarter also benefited from a better product mix, pricing actions, and strong growth in AI-driven businesses, which now represent a majority of revenue. CFO David Zinsner noted, “We delivered first-quarter non-GAAP earnings per share of $0.29 versus our guidance of breakeven on higher revenue, stronger gross margins, and continued spending discipline.”
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Intel (INTC) Q1 CY2026 Highlights:
- Revenue: $13.58 billion vs analyst estimates of $12.39 billion (7.2% year-on-year growth, 9.6% beat)
- Adjusted EPS: $0.29 vs analyst estimates of $0.01 (significant beat)
- Adjusted EBITDA: $4.80 billion vs analyst estimates of $3.29 billion (35.4% margin, 45.9% beat)
- Revenue Guidance for Q2 CY2026 is $14.3 billion at the midpoint, above analyst estimates of $13.09 billion
- Adjusted EPS guidance for Q2 CY2026 is $0.20 at the midpoint, above analyst estimates of $0.08
- Operating Margin: -23.1%, down from -2.4% in the same quarter last year
- Inventory Days Outstanding: 137, up from 123 in the previous quarter
- Market Capitalization: $476.2 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Intel’s Q1 Earnings Call
- Benjamin Reitzes (Melius): Asked about the structure and long-term impact of LTAs with Google and others. CEO Lip Bu Tan described them as multi-year, volume-based agreements supporting AI demand, with CFO David Zinsner adding they help both pricing certainty and supply planning.
- Ross Seymore (Deutsche Bank): Queried Intel’s competitive positioning in server CPUs versus x86 and ARM rivals. Lip Bu Tan emphasized product roadmap refinements, architectural improvements, and the advantage of integrated packaging and foundry capabilities.
- Stacy Rasgon (Bernstein Research): Probed the effect of rapid server growth and 18A yields on gross margins. Zinsner explained that early 18A ramp is still a margin headwind, but yield improvements are progressing faster than planned, offset by higher input costs.
- Timothy Arcuri (UBS): Sought clarity on the TeraFab partnership’s impact on the foundry model. Lip Bu Tan described it as a broad, innovative process partnership, while Zinsner noted demand for advanced packaging is now in the “billions of dollars per year” range.
- Vivek Arya (Bank of America): Questioned the sustainability of CPU demand for agentic AI workloads and implications for market share. Zinsner said agentic workloads could shift the CPU-to-GPU ratio, and Tan highlighted roadmap acceleration and talent additions to remain competitive.
Catalysts in Upcoming Quarters
Looking forward, the StockStory analyst team will be monitoring (1) sustained growth and customer adoption in Intel’s AI-capable server and client CPU lines, (2) continued progress and commercialization milestones for 18A and 14A manufacturing nodes, and (3) the execution and economic impact of new long-term agreements and foundry partnerships. Developments in advanced packaging and the ramp-up of capacity for both internal and external customers will also be key areas to track.
Intel currently trades at $98.77, up from $66.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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