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▪ Third-quarter earnings per share (EPS) attributable to Intel was $0.60; non- GAAP EPS attributable to Intel was $0.52.
▪ Forecasting fourth-quarter 2026 revenue of $15.0 billion to $16.0 billion; forecasting fourth-quarter EPS attributable to Intel of $0.10 and non-GAAP EPS attributable to Intel of $0.25.
SANTA CLARA, Calif., October 29, 2026 – Intel Corporation today reported third- quarter 2026 financial results.
“Our Q3 results demonstrate improving execution, meaningful progress expanding supply and continued advancement of our process technology,” said Lip-Bu Tan, Intel CEO. “Despite near-term headwinds across the PC industry, demand for our CPUs remains robust, reinforcing our confidence in the long-term growth opportunities for our business. Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family, while strengthening our product portfolio and roadmap. We are moving with urgency and focus to capitalize on these opportunities to deliver sustainable growth and long-term shareholder value.”
“We delivered another solid quarter. Revenue, gross margin and earnings per share exceeded guidance, including our strongest data center revenue growth in 15 years,” said David Zinsner, Intel CFO. “Looking ahead, we see the PC slowdown continuing at least through the first half of next year, but we remain optimistic about the opportunities across our broader portfolio, and we will continue making disciplined investments in capacity and working capital to increase supply and support future growth.” Q3 2026 Financial Results
In the third quarter, the company generated $5.1 billion in cash from operations.
Business Unit Revenue and Trends (In Q3 20261 vs. Q3 2025 Billions) Intel Products: Client Computing and Physical AI Group $8.1 down 5% (CCPG)2 Data Center and AI (DCAI) 7.3 up 78% Total Intel Products revenue 15.4 up 22% Intel Foundry 6.7 up 58% All Other3 0.7 down 30% Intersegment eliminations -6.3 Total net revenue $16.5 up 21% 1Operating segment revenues include intersegment transactions and are presented as actual and rounded; as a result, totals may not sum. 2CCPG was referred to as the Client Computing Group (CCG) in Q1 2026 and earlier periods. 3Altera, previously a wholly owned subsidiary, was deconsolidated following the sale of 51% of its common stock on September 12, 2025. Altera's results of operations were included in Intel's Consolidated Condensed Financial Statements through September 11, 2025.
• Completed a $23 billion public equity offering to support future growth opportunities while maintaining a strong balance sheet and investment-grade rating.
• Announced plans to acquire Classiq, combining its quantum software synthesis platform with Intel’s spin-qubit manufacturing and software expertise to create a full-stack quantum computing platform.
• Announced plans for a multiyear collaboration with Oracle intended to expand Intel ® Xeon ® -based computing on Oracle Cloud Infrastructure (OCI), which is expected to span current and future Intel Xeon platforms, including planned OCI X14 offerings powered by Intel’s next-generation server processor code-named Diamond Rapids.
• Shared new technical details on the Intel ® GPU D-series, formerly code-named Crescent Island, introduced new Intel Xeon-based rack designs and highlighted open software and ecosystem innovations at OCP Global Summit 2026. Intel also demonstrated day-0 support for Meta's Muse Spark Open, which has been tested and is running on the upcoming Intel GPU D-series and Intel Xeon platforms.
• Showcased three architectures for Agentic AI and Enterprise-scale workloads at Hot Chips 2026: next-generation Intel Xeon code-named Diamond Rapids for high- performance orchestration, Intel GPU D-series for efficient inference, and Intel ® Core™ Series 3 for intelligent client and edge computing.
• Announced the first Googlebook devices powered by Intel Core Ultra Series 3 processors with premium devices from Acer, ASUS and Lenovo, bringing together Google's next-generation computing and Intel's flagship client platform.
• Collaborated with AMD to bring x86 CPU optimizations for PyTorch together in oneDNN, simplifying AI development and deployment across Intel and AMD CPUs.
• Announced a collaboration with SAP to bridge business IT systems and the operational technology that controls physical equipment and processes through Physical AI.
• Announced a collaboration with Lens Technology, combining Intel's advanced packaging expertise with Lens Technology's precision glass processing capabilities to enable advanced semiconductor packaging for the AI era.
• Completed the RAMP-C program, enabling validated prototypes, ecosystem readiness and early customer engagement to accelerate momentum for Secure Enclave.
• Announced a collaboration with ASML to accelerate industry readiness for High- NA EUV manufacturing.
• Collaborated with Lam Research and Applied Materials on new facilities to expand capacity and enable joint R&D in process technology and manufacturing equipment.
• Appointed Dean Jarnac as executive vice president and chief sales officer, leading Intel's global sales organization and strengthening customer relationships and go-to-market execution across the company's product portfolio.
Intel's guidance for the fourth quarter of 2026 includes both GAAP and non-GAAP estimates as follows:
Q4 2026 GAAP Non-GAAP Revenue ($B) $15.0 - $16.0 Gross margin 37.1% 38.0% Tax Rate 31% 11% Earnings (Loss) Per Share Attributable $0.10 $0.25 to Intel—Diluted
Reconciliations between GAAP and non-GAAP financial measures are included below. Actual results may differ materially from Intel’s business outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below. The gross margin and EPS outlooks are based on the midpoint of the revenue range.
Intel will hold a public webcast at 2 p.m. PT today to discuss the results for its third quarter. The live public webcast can be accessed on Intel's Investor Relations website at www.intc.com. The corresponding earnings presentation and webcast replay will also be available on the site.
This release contains forward-looking statements that involve a number of risks and uncertainties. Words such as "accelerate", "achieve", "aim", "ambitions", "anticipate", "believe", "committed", "continue", "could", "designed", "estimate", "expect", "forecast", "future", "goals", "grow", "guidance", "intend", "likely", "may", "might", "milestones", "next-generation", "objective", "on track", "opportunity", "outlook", "pending", "plan", "position", "possible", "potential", "predict", "progress", "ramp", "roadmap", "seek", "should", "strive", "targets", "to be", "upcoming", "will", "would" and variations of such words and similar expressions are intended to identify such forward-looking statements, which may include statements regarding:
projections of our future financial performance, including future revenue, gross profits, capital expenditures and cash flows;
future cash requirements, the availability, uses, sufficiency and cost of capital resources, and sources of funding, including for future capital and R&D investments and for returns to stockholders, and credit ratings expectations;
future products, services and technologies, and the expected goals, timeline, ramps, progress, availability, production, regulation and benefits of such products, services and technologies, including future process nodes and packaging technologies, product roadmaps, schedules, future product architectures, expectations regarding process performance, per-watt parity and metrics, and expectations regarding product and process competitiveness;
internal and external manufacturing plans, including future internal manufacturing volumes, manufacturing expansion plans and the financing therefor, and external foundry usage;
supply expectations, including regarding constraints, limitations, pricing, and industry shortages;
plans and goals related to Intel's foundry business, including with respect to anticipated customers, future manufacturing capacity and service, technology and IP offerings;
expected timing and impact of acquisitions, divestitures and other significant transactions;
expected completion and impacts of restructuring activities and cost-saving or efficiency initiatives;
our anticipated growth, future market share, customer demand and trends in our businesses and operations;
anticipated trends and impacts related to industry component, substrate and foundry capacity utilization, shortages and constraints;
geopolitical tensions and conflicts, including with respect to international trade policies in areas such as tariffs and export controls, and their potential impact on our business;
Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including those associated with:
the significant, long-term and inherently risky investments we are making in R&D and manufacturing facilities that may not realize a favorable return;
the complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies;
our pursuit of Intel 14A and other next-generation leading-edge process technologies, our investments in manufacturing expansion projects to manufacture products using such technologies and our efforts to secure product design wins with and demand commitments from potential significant external customers for the manufacture of products using such technologies;
macroeconomic conditions and geopolitical tensions and conflicts, including geopolitical and trade tensions between the U.S. and China, tensions and conflict affecting Israel and the Middle East, rising tensions between mainland China and Taiwan and the impacts of Russia's war on Ukraine;
recently elevated geopolitical tensions, volatility and uncertainty with respect to international trade policies, including tariffs and export controls, impacting our business, the markets in which we compete and the world economy;
our complex global supply chain supporting our manufacturing facilities and incorporating external foundries, including from disruptions, delays, trade tensions and conflicts, or shortages, including current industry-wide substrate and memory shortages;
product defects, errata and other product issues, particularly as we develop next-generation products and implement next-generation manufacturing process technologies;
sales-related risks, including customer concentration and the use of distributors and other third parties;
other risks and uncertainties described in this report, our 2025 Form 10-K, our Q1 2026 Form 10-Q, our Q2 2026 Form 10-Q, our Q3 2026 Form 10-Q and our other filings with the SEC.
Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business.
Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions or other business combinations that have not been completed as of the date of this filing. In addition, the forward-looking statements in this release are based on management's expectations as of the date of this release, unless an earlier date is specified, including expectations based on third-party information and projections that management believes to be reputable. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.
Intel (Nasdaq: INTC) designs and manufactures advanced semiconductors that connect and power the modern world. Every day, our engineers create new technologies that enhance and shape the future of computing to enable new possibilities for every customer we serve. Learn more at www.intel.com.
© Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.
(In Millions, Except Per Share Amounts; Three Months Unaudited) Ended Sep 26, 2026 Sep 27, 2025 ────────────────────────────────────────────────────────────────────────────── Net revenue $ 16,513 $ 13,653 Cost of 9,417 8,435 sales Gross profit 7,096 5,218 Research and 3,490 3,231 development Marketing, general, and 1,030 1,129 administrat… Restructuri… and other 54 175 charges Operating 4,574 4,535 expenses Operating income 2,522 683 (loss) Gains (losses) on equity 330 221 investments, net Interest and 1,130 3,670 other, net Income (loss) 3,982 4,574 before taxes Provision for (benefit 462 304 from) taxes Net income 3,520 4,270 (loss) Less: net income (loss) attributable 200 207 to non-control… interests Net income (loss) $ 3,320 $ 4,063 attributable to Intel Earnings (loss) per share $ 0.63 $ 0.90 attributable to Intel—basic Earnings (loss) per share $ 0.60 $ 0.90 attributable to Intel—dilut… Weighted average shares of common stock outstanding: Basic 5,244 4,514 Diluted 5,307 4,531
1 For the three months ended September 26, 2026 and September 27, 2025, earnings per share attributable to Intel-diluted has been calculated by adjusting net income attributable to Intel for the gain of $120 million and loss of $2 million, respectively, related to the mark-to-market of that portion of the derivative liability that is attributable to 5 million and 342 thousand, respectively, contingent Escrowed Shares that were included in the weighted average shares of common stock outstanding-diluted during the period.
(In Millions, Except Par Value; Unaudited) Sep 26, 2026 Dec 27, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash $ 21,846 $ 14,265 equivalents Short-term 32,159 23,151 investments Accounts 4,093 3,839 receivable, net Inventories Raw materials 1,233 993 Work in process 8,797 7,840 Finished goods 3,038 2,785 13,068 11,618 Other current 11,408 10,815 assets Total current 82,574 63,688 assets Property, plant, 105,314 105,414 and equipment, net Equity investments 8,798 8,512 Goodwill 20,465 23,912 Identified intangible assets, 2,444 2,772 net Other long-term 8,979 7,131 assets Total assets $ 228,574 $ 211,429 Liabilities and stockholders' equity Current liabilities: Accounts payable 8,831 9,882 Accrued compensation and 3,905 3,990 benefits Short-term debt 3,817 2,499 Other accrued 20,843 15,204 liabilities Total current 37,396 31,575 liabilities Debt 46,317 44,086 Other long-term 13,305 9,408 liabilities Stockholders' equity Common stock and capital in excess of par value,5,310shares 78,177 65,185 issued and outstanding (4,994 issued and outstanding as of December 27, 2025) Accumulated other comprehensive -232 113 income (loss) Retained earnings 36,969 48,983 Total Intel stockholders' 114,914 114,281 equity Non-controlling 16,642 12,079 interests Total stockholders' 131,556 126,360 equity Total liabilities and stockholders’ $ 228,574 $ 211,429 equity
(In Millions; Nine Months Unaudited) Ended Sep 26, 2026 Sep 27, 2025 ────────────────────────────────────────────────────────────────────────────── Cash, cash equivalents, and restricted $ 14,712 $ 8,249 cash, beginning of period Cash flows provided by (used for) operating activities: Net income -11,609 359 (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 8,933 7,971 Share-based 1,894 1,896 compensation Restructuri… and other 3,969 372 charges Amortization of 659 708 intangibles (Gains) losses on equity -219 -611 investments, net Mark-to-mar… (gains) losses on 12,614 1,687 Escrowed Shares1 (Gains) losses on 18 -5,355 divestitures Deferred 56 123 taxes Impairments and net (gain) loss on 140 465 retirement of property, plant, and equipment Changes in assets and liabilities: Accounts -281 162 receivable Inventories -1,450 -9 Accounts 821 -281 payable Accrued compensation -207 541 and benefits Income taxes -405 -1,196 Other assets and -1,749 -1,423 liabilities Total 24,793 5,050 adjustments Net cash provided by (used for) 13,184 5,409 operating activities Cash flows provided by (used for) investing activities: Additions to property, -10,216 -11,158 plant, and equipment Proceeds from capital-rel… 215 1,018 government incentives Acquisition… net of cash -596 — acquired Purchases of short-term -32,151 -16,401 investments Maturities of 10,767 8,236 short-term investments Sales of short-term 11,911 2,728 investments Sales of equity 401 642 investments Proceeds from — 6,186 divestiture… net Other -590 494 investing Net cash provided by (used for) -20,259 -8,255 investing activities Cash flows provided by (used for) financing activities: Issuance of commercial paper, net — 3,493 of issuance costs Repayment of commercial — -3,493 paper Payments on finance -951 -103 leases Partner 5,032 3,652 contributio… Partner -14,442 -159 distributio… Net proceeds from sales of — 922 subsidiary shares Additions to property, -1,618 -2,493 plant, and equipment Issuance of term debt, net of 13,000 — issuance costs Repayments -9,000 -3,750 of term debt Proceeds from sales of common stock through 736 777 employee equity incentive plans Net proceeds attributed to common stock 440 7,682 and warrants issued, and Escrowed Shares1 Net proceeds from public 22,617 — offering of common stock Restricted stock unit -907 -286 withholdings Other -146 -504 financing Net cash provided by (used for) 14,761 5,738 financing activities Net increase (decrease) in cash, cash 7,686 2,892 equivalents, and restricted cash Cash, cash equivalents, and $ 22,398 $ 11,141 restricted cash, end of period
1 Escrowed Shares refer to shares of Intel common stock held in escrow to be released to the U.S. Department of Commerce (DOC) as we perform and receive cash proceeds in connection with our CHIPS Act Secure Enclave agreement with the U.S. Government.
1 CCPG was referred to as the Client Computing Group (CCG) in Q1 2026 and earlier periods.
2 The "All Other" category includes the results of operations from other non- reportable segments, including our Mobileye business, our IMS business, startup businesses that support our initiatives, and historical results of operations from divested businesses, including Altera, which we divested on September 12, 2025. Altera's results were included within "All Other" for periods presented through September 11, 2025.
Explanation of Non-GAAP Measures In addition to disclosing financial results in accordance with U.S. GAAP, this document references non-GAAP financial measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance. These non-GAAP financial measures are used in our performance-based RSUs and our cash bonus plans.
Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related effects to income taxes and net income (loss) attributable to non-controlling interests. Income tax effects are calculated using a fixed long-term projected tax rate. For 2026 and 2025, we determined the projected non-GAAP tax rate to be 11% and 12%, respectively. We project this long-term non-GAAP tax rate on at least an annual basis using a five-year non-GAAP financial projection that excludes the income tax effects of each adjustment. The projected non-GAAP tax rate also considers factors such as our tax structure, our tax positions in various jurisdictions, and key legislation in significant jurisdictions where we operate. This long-term non- GAAP tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or changes to our strategy or business operations. Management uses this non-GAAP tax rate in managing internal short- and long-term operating plans and in evaluating our performance; we believe this approach facilitates comparison of our operating results and provides useful evaluation of our current operating performance. Non-GAAP adjustments attributable to non- controlling interests are calculated by adjusting for the minority stockholder portion of non-GAAP adjustments we make for relevant acquisition-related costs, share-based compensation, restructuring and other charges, and income tax effects, as applicable to each majority-owned subsidiary.
Our non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Non-GAAP adjustment or Usefulness to measure Definition management and investors Amortization of acquisition-related intangible assets consists of We exclude amortization amortization of charges for our intangible assets such acquisition-related as developed intangible assets for technology, brands, and purposes of calculating customer relationships certain non-GAAP acquired in connection measures because these with business charges are combinations. Charges inconsistent in size related to the and are significantly Acquisition-related amortization of these impacted by the timing adjustments intangibles are and valuation of our recorded within both acquisitions. These cost of sales and adjustments facilitate marketing, general and a useful evaluation of administrative expenses our current operating in our U.S. GAAP performance and financial statements. comparison to our past Amortization charges operating performance are recorded over the and provide investors estimated useful life with additional means of the related acquired to evaluate cost and intangible asset, and expense trends. thus are generally recorded over multiple years. We exclude charges related to share-based compensation for purposes of calculating certain non-GAAP measures because we believe these adjustments provide Share-based comparability to peer compensation consists company results and of charges related to because these charges our employee equity are not viewed by incentive plans. management as part of Share-based Charges related to our core operating compensation share-based performance. We believe compensation are these adjustments recorded within cost of provide investors with sales, research and a useful view, through development, and the eyes of management, marketing, general and of our core business administrative. model, how management currently evaluates core operational performance, and additional means to evaluate expense trends, including in comparison to other peer companies.
Non-GAAP adjustment or Usefulness to measure Definition management and investors We exclude Restructuring charges restructuring and other are costs associated charges, including any with restructuring adjustments to charges plans and are primarily recorded in prior related to employee periods, for purposes severance and benefit of calculating certain arrangements. Other non-GAAP measures charges include because these costs do Restructuring and periodic goodwill and not reflect our core other charges asset impairments, and operating performance. other costs associated These adjustments with certain non-core facilitate a useful activities. Q3 2026 and evaluation of our core Q3 2025 adjustments operating performance primarily consist of and comparisons to past charges associated with operating results and the 2025 Restructuring provide investors with Plan. additional means to evaluate expense trends. (Gains) losses on equity investments, net consists of ongoing mark-to-market We exclude these adjustments on non-operating gains and marketable equity losses for purposes of securities, observable calculating certain (Gains) losses on price adjustments on non-GAAP measures to equity investments, non-marketable equity provide comparability net securities, related between periods. The impairment charges, exclusion reflects how gains (losses) from the management evaluates sale of equity the core operations of investments, gains the business. (losses) from equity method investments and other. We exclude non-operating gains or losses resulting from (Gains) losses are divestitures for recognized at the close purposes of calculating of a divestiture, or certain non-GAAP over a specified measures because they (Gains) losses from deferral period when do not reflect our divestitures deferred consideration current operating is received at the time performance. These of closing, as a adjustments facilitate component of interest a useful evaluation of and other, net. our current operating performance and comparisons to past operating results. (Gains) losses on mark-to-market of Escrowed Shares is a component of interest and other, net and relates to the change in fair value of the Escrowed Shares derivative liability recognized in connection with the Warrant and Common Stock Agreement with We exclude these the U.S. Government. non-operating gains and Charges represent the losses for purposes of net change in fair calculating certain (Gains) losses from value of both Escrowed non-GAAP measures to mark-to-market of Shares released during provide better Escrowed Shares the quarter and comparability between Escrowed Shares still periods. The exclusion held in escrow at reflects how management quarter end. evaluates the core Q3 2026 and Q3 2025 per operations of the share calculations business. exclude the gain of $120 million and loss of $2 million, respectively, related to the mark-to-market of contingent Escrowed Shares that were included in the weighted average shares of common stock outstanding-diluted during the period. We reference a non-GAAP financial measure of adjusted free cash flow, which is used by management when assessing our sources of liquidity, capital This non-GAAP financial resources, and quality measure is helpful in of earnings. Adjusted understanding our Adjusted free cash free cash flow is capital requirements flow operating cash flow and sources of adjusted for (1) liquidity by providing additions to property, an additional means to plant, and equipment, evaluate the cash flow net of proceeds from trends of our business. capital-related government incentives and net SCIP partner contributions, and (2) payments on finance leases.
Supplemental Reconciliations of GAAP Actuals to Non-GAAP Actuals Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the reconciliations from U.S. GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
($ In Millions, Except Per Share Three Amounts; Months Sep 27, Unaudited) Ended Sep 26, 2026 2025 ────────────────────────────────────────────────────────────────────────────── GAAP gross $ 7,096 $ 5,218 profit Acquisitio… 55 101 adjustments Share-based 133 137 compensati… Non-GAAP gross $ 7,284 $ 5,456 profit GAAP gross margin 43.0 % 38.2 % percentage Acquisitio… 0.3 % 0.7 % adjustments Share-based 0.8 % 1.0 % compensati… Non-GAAP gross 44.1 % 40.0 % margin percentage GAAP R&D $ 4,520 $ 4,360 and MG&A Acquisitio… -17 -17 adjustments Share-based -453 -411 compensati… Non-GAAP R&D and $ 4,050 $ 3,932 MG&A GAAP operating $ 2,522 $ 683 income (loss) Acquisitio… 72 118 adjustments Share-based 586 548 compensati… Restructur… and other 54 175 charges Non-GAAP operating $ 3,234 $ 1,524 income (loss) GAAP operating 15.3 % 5.0 % margin (loss) Acquisitio… 0.4 % 0.9 % adjustments Share-based 3.5 % 4.0 % compensati… Restructur… and other 0.3 % 1.3 % charges Non-GAAP operating 19.6 % 11.2 % margin (loss) GAAP tax 11.6 % 6.6 % rate Income tax -0.6 % 5.4 % effects Non-GAAP 11.0 % 12.0 % tax rate GAAP net income (loss) $ 3,320 $ 4,063 attributab… to Intel Acquisitio… 72 118 adjustments Share-based 586 548 compensati… Restructur… and other 54 175 charges (Gains) losses on equity -330 -221 investment… net (Gains) losses from 4 -5,452 divestiture (Gains) losses on mark-to-ma… -1,005 1,687 of Escrowed Shares Adjustments attributab… to -37 -27 non-contro… interest Income tax 92 132 effects Non-GAAP net income (loss) $ 2,756 $ 1,023 attributab… to Intel
(In Millions, Except Per Share Amounts; Three Months Unaudited) Ended Sep 26, 2026 Sep 27, 2025 ────────────────────────────────────────────────────────────────────────────── GAAP earnings (loss) per share $ 0.60 $ 0.90 attributable to Intel—dilut… Acquisition… 0.02 0.03 adjustments Share-based 0.11 0.12 compensation Restructuri… and other 0.01 0.04 charges (Gains) losses on equity -0.06 -0.05 investments, net (Gains) losses from — -1.20 divestiture (Gains) losses on mark-to-mar… -0.17 0.37 of Escrowed Shares Adjustments attributable to -0.01 -0.01 non-control… interest Income tax 0.02 0.03 effects Non-GAAP earnings (loss) per share $ 0.52 $ 0.23 attributable to Intel—dilut… GAAP net cash provided by $ 5,082 $ 2,546 (used for) operating activities Additions to property, plant, and equipment -4,219 -2,956 (gross capital expenditure… Proceeds from capital-rel… 48 54 government incentives Partner contributio… 847 1,346 net Payments on finance -119 -94 leases Adjusted free cash $ 1,639 $ 896 flow GAAP net cash provided by $ -19,590 $ -6,250 (used for) investing activities GAAP net cash provided by $ 23,309 $ 5,152 (used for) financing activities
Supplemental Reconciliations of GAAP Outlook to Non-GAAP Outlook Set forth below are reconciliations of the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the financial outlook prepared in accordance with U.S. GAAP and the reconciliations from this Business Outlook should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
(Unaudited) Q4 2026 Outlook1 Approximately GAAP gross margin percentage 37.1 % Acquisition-related adjustments 0.2 % Share-based compensation 0.7 % Non-GAAP gross margin percentage 38.0 % GAAP tax rate 31 % Income tax effects -20 % Non-GAAP tax rate 11 % GAAP earnings (loss) per share $ 0.10 attributable to Intel—diluted Acquisition-related adjustments 0.01 Share-based compensation 0.11 Adjustments attributable to -0.01 non-controlling interest Income tax effects 0.04 Non-GAAP earnings (loss) per share $ 0.25 attributable to Intel—diluted
1 Non-GAAP gross margin percentage and non-GAAP earnings (loss) per share attributable to Intel outlook based on the mid-point of the revenue range.
Supplemental Reconciliations of GAAP Operating Expenses to Non-GAAP Operating Expenses Set forth below are reconciliations of non-GAAP operating expenses to the most directly comparable U.S. GAAP financial measure, GAAP operating expenses. This non-GAAP financial measure should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the reconciliations should be carefully evaluated. Please refer to "Explanation of Non-GAAP Measures" in this document for a detailed explanation of the adjustments made to the comparable U.S. GAAP measure, the ways management uses the non-GAAP measure, and the reasons why management believes the non-GAAP measure provides useful information for investors.
Q4 2026 Outlook Full-Year 2026 (In Billions; Unaudited) Approximately Approximately ────────────────────────────────────────────────────────────────────────────── GAAP operating expenses $ 4.9 $ 22.6 Acquisition-related — -0.1 adjustments Share-based compensation -0.5 -1.9 Restructuring and other — -4.3 charges Non-GAAP operating expenses $ 4.4 $ 16.3
Full text with the tables
Exhibit 99.1
Intel Corporation
2200 Mission College Blvd.
Santa Clara, CA 95054-1549
News Release
Intel Reports Third-Quarter 2026 Financial Results
News Summary
▪ Third-quarter revenue was $16.5 billion, up 21% year-over-year (YoY).
▪ Third-quarter earnings per share (EPS) attributable to Intel was $0.60; non-
GAAP EPS attributable to Intel was $0.52.
▪ Forecasting fourth-quarter 2026 revenue of $15.0 billion to $16.0 billion;
forecasting fourth-quarter EPS attributable to Intel of $0.10 and non-GAAP EPS
attributable to Intel of $0.25.
SANTA CLARA, Calif., October 29, 2026 – Intel Corporation today reported third-
quarter 2026 financial results.
“Our Q3 results demonstrate improving execution, meaningful progress expanding
supply and continued advancement of our process technology,” said Lip-Bu Tan,
Intel CEO. “Despite near-term headwinds across the PC industry, demand for our
CPUs remains robust, reinforcing our confidence in the long-term growth
opportunities for our business. Our immediate priority is to unlock additional
supply to meet extraordinary demand for our Xeon family, while strengthening our
product portfolio and roadmap. We are moving with urgency and focus to
capitalize on these opportunities to deliver sustainable growth and long-term
shareholder value.”
“We delivered another solid quarter. Revenue, gross margin and earnings per
share exceeded guidance, including our strongest data center revenue growth in
15 years,” said David Zinsner, Intel CFO. “Looking ahead, we see the PC slowdown
continuing at least through the first half of next year, but we remain
optimistic about the opportunities across our broader portfolio, and we will
continue making disciplined investments in capacity and working capital to
increase supply and support future growth.”
Q3 2026 Financial Results
GAAP Non-GAAP
Q3 2026 Q3 2025 vs. Q3 Q3 2026 Q3 2025 vs. Q3
2025 2025
Revenue $16.5 $13.7 up 21%
($B)
Gross 43.0% 38.2% up 4.8 44.1% 40.0% up 4.1
margin ppts ppts
R&D and
MG&A $4.5 $4.4 up 4% $4.1 $3.9 up 3%
($B)
Operat… 15.3% 5.0% up 10.3 19.6% 11.2% up 8.4
margin ppts ppts
Tax 11.6% 6.6% up 5 11.0% 12.0% down 1
rate ppts ppt
Net
income
attrib… $3.3 $4.1 down 18% $2.8 $1.0 up 169%
to
Intel
($B)
Earnin…
per
share $0.60 $0.90 down 33% $0.52 $0.23 up 126%
attrib…
to
Intel—…
Full reconciliations between GAAP and non-GAAP measures are provided below.
In the third quarter, the company generated $5.1 billion in cash from
operations.
Intel/Page 2
Business Unit Summary
Business Unit Revenue and Trends (In Q3 20261 vs. Q3 2025
Billions)
Intel Products:
Client Computing and Physical AI Group $8.1 down 5%
(CCPG)2
Data Center and AI (DCAI) 7.3 up 78%
Total Intel Products revenue 15.4 up 22%
Intel Foundry 6.7 up 58%
All Other3 0.7 down 30%
Intersegment eliminations -6.3
Total net revenue $16.5 up 21%
1Operating segment revenues include
intersegment transactions and are
presented as actual and rounded; as a
result, totals may not sum.
2CCPG was referred to as the Client
Computing Group (CCG) in Q1 2026 and
earlier periods.
3Altera, previously a wholly owned
subsidiary, was deconsolidated following
the sale of 51% of its common stock on
September 12, 2025. Altera's results of
operations were included in Intel's
Consolidated Condensed Financial
Statements through September 11, 2025.
Business Highlights
Company Momentum
• Completed a $23 billion public equity offering to support future growth
opportunities while maintaining a strong balance sheet and investment-grade
rating.
• Announced plans to acquire Classiq, combining its quantum software synthesis
platform with Intel’s spin-qubit manufacturing and software expertise to create
a full-stack quantum computing platform.
Product Momentum
• Announced plans for a multiyear collaboration with Oracle intended to expand
Intel ® Xeon ® -based computing on Oracle Cloud Infrastructure (OCI), which is
expected to span current and future Intel Xeon platforms, including planned OCI
X14 offerings powered by Intel’s next-generation server processor code-named
Diamond Rapids.
• Shared new technical details on the Intel ® GPU D-series, formerly code-named
Crescent Island, introduced new Intel Xeon-based rack designs and highlighted
open software and ecosystem innovations at OCP Global Summit 2026. Intel also
demonstrated day-0 support for Meta's Muse Spark Open, which has been tested and
is running on the upcoming Intel GPU D-series and Intel Xeon platforms.
• Showcased three architectures for Agentic AI and Enterprise-scale workloads at
Hot Chips 2026: next-generation Intel Xeon code-named Diamond Rapids for high-
performance orchestration, Intel GPU D-series for efficient inference, and Intel
® Core™ Series 3 for intelligent client and edge computing.
• Announced the first Googlebook devices powered by Intel Core Ultra Series 3
processors with premium devices from Acer, ASUS and Lenovo, bringing together
Google's next-generation computing and Intel's flagship client platform.
• Collaborated with AMD to bring x86 CPU optimizations for PyTorch together in
oneDNN, simplifying AI development and deployment across Intel and AMD CPUs.
• Announced a collaboration with SAP to bridge business IT systems and the
operational technology that controls physical equipment and processes through
Physical AI.
Foundry Momentum
• Released Intel 14A 0.9 process design kit (PDK) in October.
• Announced a collaboration with Lens Technology, combining Intel's advanced
packaging expertise with Lens Technology's precision glass processing
capabilities to enable advanced semiconductor packaging for the AI era.
• Completed the RAMP-C program, enabling validated prototypes, ecosystem
readiness and early customer engagement to accelerate momentum for Secure
Enclave.
• Announced a collaboration with ASML to accelerate industry readiness for High-
NA EUV manufacturing.
Intel/Page 3
• Collaborated with Lam Research and Applied Materials on new facilities to
expand capacity and enable joint R&D in process technology and manufacturing
equipment.
Culture & Leadership
• Appointed Dean Jarnac as executive vice president and chief sales officer,
leading Intel's global sales organization and strengthening customer
relationships and go-to-market execution across the company's product portfolio.
Business Outlook
Intel's guidance for the fourth quarter of 2026 includes both GAAP and non-GAAP
estimates as follows:
Q4 2026 GAAP Non-GAAP
Revenue ($B) $15.0 - $16.0
Gross margin 37.1% 38.0%
Tax Rate 31% 11%
Earnings (Loss) Per Share Attributable $0.10 $0.25
to Intel—Diluted
Reconciliations between GAAP and non-GAAP financial measures are included below.
Actual results may differ materially from Intel’s business outlook as a result
of, among other things, the factors described under “Forward-Looking Statements”
below. The gross margin and EPS outlooks are based on the midpoint of the
revenue range.
Earnings Webcast
Intel will hold a public webcast at 2 p.m. PT today to discuss the results for
its third quarter. The live public webcast can be accessed on Intel's Investor
Relations website at www.intc.com. The corresponding earnings presentation and
webcast replay will also be available on the site.
Forward-Looking Statements
This release contains forward-looking statements that involve a number of risks
and uncertainties. Words such as "accelerate", "achieve", "aim", "ambitions",
"anticipate", "believe", "committed", "continue", "could", "designed",
"estimate", "expect", "forecast", "future", "goals", "grow", "guidance",
"intend", "likely", "may", "might", "milestones", "next-generation",
"objective", "on track", "opportunity", "outlook", "pending", "plan",
"position", "possible", "potential", "predict", "progress", "ramp", "roadmap",
"seek", "should", "strive", "targets", "to be", "upcoming", "will", "would" and
variations of such words and similar expressions are intended to identify such
forward-looking statements, which may include statements regarding:
▪
our business plans and strategy and anticipated benefits therefrom;
▪
projections of our future financial performance, including future revenue, gross
profits, capital expenditures and cash flows;
▪
projected costs and yield trends;
▪
future cash requirements, the availability, uses, sufficiency and cost of
capital resources, and sources of funding, including for future capital and R&D
investments and for returns to stockholders, and credit ratings expectations;
▪
future products, services and technologies, and the expected goals, timeline,
ramps, progress, availability, production, regulation and benefits of such
products, services and technologies, including future process nodes and
packaging technologies, product roadmaps, schedules, future product
architectures, expectations regarding process performance, per-watt parity and
metrics, and expectations regarding product and process competitiveness;
▪
internal and external manufacturing plans, including future internal
manufacturing volumes, manufacturing expansion plans and the financing therefor,
and external foundry usage;
▪
future production capacity and product supply;
▪
supply expectations, including regarding constraints, limitations, pricing, and
industry shortages;
▪
plans and goals related to Intel's foundry business, including with respect to
anticipated customers, future manufacturing capacity and service, technology and
IP offerings;
▪
expected timing and impact of acquisitions, divestitures and other significant
transactions;
Intel/Page 4
▪
expected completion and impacts of restructuring activities and cost-saving or
efficiency initiatives;
▪
social and environmental performance goals, measures, strategies and results;
▪
our anticipated growth, future market share, customer demand and trends in our
businesses and operations;
▪
projected growth and trends in markets relevant to our businesses;
▪
anticipated trends and impacts related to industry component, substrate and
foundry capacity utilization, shortages and constraints;
▪
expectations regarding government funding, incentives, policies and priorities;
▪
technology trends and developments, including with respect to AI;
▪
macroeconomic conditions;
▪
geopolitical tensions and conflicts, including with respect to international
trade policies in areas such as tariffs and export controls, and their potential
impact on our business;
▪
tax- and accounting-related expectations;
▪
expectations regarding our relationships with certain sanctioned parties; and
▪
other characterizations of future events or circumstances.
Such statements involve many risks and uncertainties that could cause our actual
results to differ materially from those expressed or implied, including those
associated with:
▪
the high level of competition and rapid technological change in our industry;
▪
the significant, long-term and inherently risky investments we are making in R&D
and manufacturing facilities that may not realize a favorable return;
▪
the complexities and uncertainties in developing and implementing new
semiconductor products and manufacturing process technologies;
▪
our pursuit of Intel 14A and other next-generation leading-edge process
technologies, our investments in manufacturing expansion projects to manufacture
products using such technologies and our efforts to secure product design wins
with and demand commitments from potential significant external customers for
the manufacture of products using such technologies;
▪
alternative financing arrangements and pursuit of government grants;
▪
the U.S. government's acquisition of significant equity interests in us;
▪
changes in product demand and margins;
▪
macroeconomic conditions and geopolitical tensions and conflicts, including
geopolitical and trade tensions between the U.S. and China, tensions and
conflict affecting Israel and the Middle East, rising tensions between mainland
China and Taiwan and the impacts of Russia's war on Ukraine;
▪
recently elevated geopolitical tensions, volatility and uncertainty with respect
to international trade policies, including tariffs and export controls,
impacting our business, the markets in which we compete and the world economy;
▪
the evolving market for products with AI capabilities;
▪
our complex global supply chain supporting our manufacturing facilities and
incorporating external foundries, including from disruptions, delays, trade
tensions and conflicts, or shortages, including current industry-wide substrate
and memory shortages;
▪
product defects, errata and other product issues, particularly as we develop
next-generation products and implement next-generation manufacturing process
technologies;
▪
potential security vulnerabilities in our products;
▪
increasing and evolving cybersecurity threats and privacy risks;
▪
IP risks including related litigation and regulatory proceedings;
▪
the need to attract, retain and motivate key talent;
▪
strategic transactions and investments;
▪
sales-related risks, including customer concentration and the use of
distributors and other third parties;
▪
our debt obligations and our ability to access sources of capital;
▪
complex and evolving laws and regulations across many jurisdictions;
▪
catastrophic events;
Intel/Page 5
▪
fluctuations in currency exchange rates;
▪
changes in our effective tax rate and applicable tax regimes;
▪
environmental, health, safety and product regulations; and
▪
other risks and uncertainties described in this report, our 2025 Form 10-K, our
Q1 2026 Form 10-Q, our Q2 2026 Form 10-Q, our Q3 2026 Form 10-Q and our other
filings with the SEC.
Given these risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Readers are urged to carefully
review and consider the various disclosures made in this release and in other
documents we file from time to time with the SEC that disclose risks and
uncertainties that may affect our business.
Unless specifically indicated otherwise, the forward-looking statements in this
release do not reflect the potential impact of any divestitures, mergers,
acquisitions or other business combinations that have not been completed as of
the date of this filing. In addition, the forward-looking statements in this
release are based on management's expectations as of the date of this release,
unless an earlier date is specified, including expectations based on third-party
information and projections that management believes to be reputable. We do not
undertake, and expressly disclaim any duty, to update such statements, whether
as a result of new information, new developments, or otherwise, except to the
extent that disclosure may be required by law.
About Intel
Intel (Nasdaq: INTC) designs and manufactures advanced semiconductors that
connect and power the modern world. Every day, our engineers create new
technologies that enhance and shape the future of computing to enable new
possibilities for every customer we serve. Learn more at www.intel.com.
© Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks
of Intel Corporation or its subsidiaries. Other names and brands may be claimed
as the property of others.
Intel/Page 6
Intel Corporation
Consolidated Condensed Statements of Operations and Other Information
(In Millions,
Except Per
Share Amounts; Three Months
Unaudited) Ended Sep 26, 2026 Sep 27, 2025
──────────────────────────────────────────────────────────────────────────────
Net revenue $ 16,513 $ 13,653
Cost of 9,417 8,435
sales
Gross profit 7,096 5,218
Research and 3,490 3,231
development
Marketing,
general, and 1,030 1,129
administrat…
Restructuri…
and other 54 175
charges
Operating 4,574 4,535
expenses
Operating
income 2,522 683
(loss)
Gains
(losses) on
equity 330 221
investments,
net
Interest and 1,130 3,670
other, net
Income
(loss) 3,982 4,574
before taxes
Provision
for (benefit 462 304
from) taxes
Net income 3,520 4,270
(loss)
Less: net
income
(loss)
attributable 200 207
to
non-control…
interests
Net income
(loss) $ 3,320 $ 4,063
attributable
to Intel
Earnings
(loss) per
share $ 0.63 $ 0.90
attributable
to
Intel—basic
Earnings
(loss) per
share $ 0.60 $ 0.90
attributable
to
Intel—dilut…
Weighted
average
shares of
common stock
outstanding:
Basic 5,244 4,514
Diluted 5,307 4,531
1 For the three months ended September 26, 2026 and September 27, 2025, earnings
per share attributable to Intel-diluted has been calculated by adjusting net
income attributable to Intel for the gain of $120 million and loss of $2
million, respectively, related to the mark-to-market of that portion of the
derivative liability that is attributable to 5 million and 342 thousand,
respectively, contingent Escrowed Shares that were included in the weighted
average shares of common stock outstanding-diluted during the period.
(In
Other Thousands; Sep 27,
informatio… Unaudited) Sep 26, 2026 Jun 27, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Employees
Intel 76.5 77.6 83.3
Mobileye
and other 4.6 4.7 5.1
subsidiari…
Total Intel 81.1 82.3 88.4
Intel/Page 7
Intel Corporation
Consolidated Condensed Balance Sheets
(In Millions, Except
Par Value;
Unaudited) Sep 26, 2026 Dec 27, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash $ 21,846 $ 14,265
equivalents
Short-term 32,159 23,151
investments
Accounts 4,093 3,839
receivable, net
Inventories
Raw materials 1,233 993
Work in process 8,797 7,840
Finished goods 3,038 2,785
13,068 11,618
Other current 11,408 10,815
assets
Total current 82,574 63,688
assets
Property, plant, 105,314 105,414
and equipment, net
Equity investments 8,798 8,512
Goodwill 20,465 23,912
Identified
intangible assets, 2,444 2,772
net
Other long-term 8,979 7,131
assets
Total assets $ 228,574 $ 211,429
Liabilities and
stockholders'
equity
Current
liabilities:
Accounts payable 8,831 9,882
Accrued
compensation and 3,905 3,990
benefits
Short-term debt 3,817 2,499
Other accrued 20,843 15,204
liabilities
Total current 37,396 31,575
liabilities
Debt 46,317 44,086
Other long-term 13,305 9,408
liabilities
Stockholders'
equity
Common stock and
capital in excess
of
par
value,5,310shares 78,177 65,185
issued and
outstanding (4,994
issued and
outstanding as of
December 27, 2025)
Accumulated other
comprehensive -232 113
income
(loss)
Retained earnings 36,969 48,983
Total Intel
stockholders' 114,914 114,281
equity
Non-controlling 16,642 12,079
interests
Total
stockholders' 131,556 126,360
equity
Total liabilities
and stockholders’ $ 228,574 $ 211,429
equity
Intel/Page 8
Intel Corporation
Consolidated Condensed Statements of Cash Flows
(In Millions; Nine Months
Unaudited) Ended Sep 26, 2026 Sep 27, 2025
──────────────────────────────────────────────────────────────────────────────
Cash, cash
equivalents,
and
restricted $ 14,712 $ 8,249
cash,
beginning of
period
Cash flows
provided by
(used for)
operating
activities:
Net income -11,609 359
(loss)
Adjustments
to reconcile
net income
(loss) to
net cash
provided by
operating
activities:
Depreciation 8,933 7,971
Share-based 1,894 1,896
compensation
Restructuri…
and other 3,969 372
charges
Amortization
of 659 708
intangibles
(Gains)
losses on
equity -219 -611
investments,
net
Mark-to-mar…
(gains)
losses on 12,614 1,687
Escrowed
Shares1
(Gains)
losses on 18 -5,355
divestitures
Deferred 56 123
taxes
Impairments
and net
(gain) loss
on 140 465
retirement
of property,
plant, and
equipment
Changes in
assets and
liabilities:
Accounts -281 162
receivable
Inventories -1,450 -9
Accounts 821 -281
payable
Accrued
compensation -207 541
and benefits
Income taxes -405 -1,196
Other assets
and -1,749 -1,423
liabilities
Total 24,793 5,050
adjustments
Net cash
provided by
(used for) 13,184 5,409
operating
activities
Cash flows
provided by
(used for)
investing
activities:
Additions to
property, -10,216 -11,158
plant, and
equipment
Proceeds
from
capital-rel… 215 1,018
government
incentives
Acquisition…
net of cash -596 —
acquired
Purchases of
short-term -32,151 -16,401
investments
Maturities
of 10,767 8,236
short-term
investments
Sales of
short-term 11,911 2,728
investments
Sales of
equity 401 642
investments
Proceeds
from — 6,186
divestiture…
net
Other -590 494
investing
Net cash
provided by
(used for) -20,259 -8,255
investing
activities
Cash flows
provided by
(used for)
financing
activities:
Issuance of
commercial
paper, net — 3,493
of
issuance
costs
Repayment of
commercial — -3,493
paper
Payments on
finance -951 -103
leases
Partner 5,032 3,652
contributio…
Partner -14,442 -159
distributio…
Net proceeds
from sales
of — 922
subsidiary
shares
Additions to
property, -1,618 -2,493
plant, and
equipment
Issuance of
term debt,
net of 13,000 —
issuance
costs
Repayments -9,000 -3,750
of term debt
Proceeds
from sales
of common
stock
through 736 777
employee
equity
incentive
plans
Net proceeds
attributed
to common
stock 440 7,682
and warrants
issued, and
Escrowed
Shares1
Net proceeds
from public 22,617 —
offering of
common stock
Restricted
stock unit -907 -286
withholdings
Other -146 -504
financing
Net cash
provided by
(used for) 14,761 5,738
financing
activities
Net increase
(decrease)
in cash,
cash 7,686 2,892
equivalents,
and
restricted
cash
Cash, cash
equivalents,
and $ 22,398 $ 11,141
restricted
cash, end of
period
1 Escrowed Shares refer to shares of Intel common stock held in escrow to be
released to the U.S. Department of Commerce (DOC) as we perform and receive cash
proceeds in connection with our CHIPS Act Secure Enclave agreement with the U.S.
Government.
Intel/Page 9
Intel Corporation
Supplemental Operating Segment Results
T…
M…
E…
… S…
… 2…
… 2…
──────────────────────────────────────────────────────────────────────────────
I…
P…
T… … … … … …
C… D… I… … … … … …
P…
… $ 8… $ 7… $ 1… $ 6… $ 6… $ — $ -… $ 1…
…
…
… 5… 4… 1… 8… 5… 1… -… 1…
…
…
…
…
… $ 2… $ 3… $ 5… $ -… $ 1… $ -… $ -… $ 2…
…
T…
M…
E…
… S…
… 2…
… 2…
──────────────────────────────────────────────────────────────────────────────
I…
P…
T… … … … … …
C… D… I… … … … … …
P…
… $ 8… $ 4… $ 1… $ 4… $ 9… $ — $ -… $ 1…
…
…
… 5… 3… 8… 6… 8… 7… -… 1…
…
…
…
…
… $ 2… $ 9… $ 3… $ -… $ 1… $ -… $ 28 $ 6…
…
1 CCPG was referred to as the Client Computing Group (CCG) in Q1 2026 and
earlier periods.
2 The "All Other" category includes the results of operations from other non-
reportable segments, including our Mobileye business, our IMS business, startup
businesses that support our initiatives, and historical results of operations
from divested businesses, including Altera, which we divested on September 12,
2025. Altera's results were included within "All Other" for periods presented
through September 11, 2025.
Intel/Page 10
Intel Corporation
Explanation of Non-GAAP Measures
In addition to disclosing financial results in accordance with U.S. GAAP, this
document references non-GAAP financial measures below. We believe these non-GAAP
financial measures provide investors with useful supplemental information about
our operating performance, enable comparison of financial trends and results
between periods where certain items may vary independent of business
performance, and allow for greater transparency with respect to key metrics used
by management in operating our business and measuring our performance. These
non-GAAP financial measures are used in our performance-based RSUs and our cash
bonus plans.
Our non-GAAP financial measures reflect adjustments based on one or more of the
following items, as well as the related effects to income taxes and net income
(loss) attributable to non-controlling interests. Income tax effects are
calculated using a fixed long-term projected tax rate. For 2026 and 2025, we
determined the projected non-GAAP tax rate to be 11% and 12%, respectively. We
project this long-term non-GAAP tax rate on at least an annual basis using a
five-year non-GAAP financial projection that excludes the income tax effects of
each adjustment. The projected non-GAAP tax rate also considers factors such as
our tax structure, our tax positions in various jurisdictions, and key
legislation in significant jurisdictions where we operate. This long-term non-
GAAP tax rate may be subject to change for a variety of reasons, including the
rapidly evolving global tax environment, significant changes in our geographic
earnings mix, or changes to our strategy or business operations. Management uses
this non-GAAP tax rate in managing internal short- and long-term operating plans
and in evaluating our performance; we believe this approach facilitates
comparison of our operating results and provides useful evaluation of our
current operating performance. Non-GAAP adjustments attributable to non-
controlling interests are calculated by adjusting for the minority stockholder
portion of non-GAAP adjustments we make for relevant acquisition-related costs,
share-based compensation, restructuring and other charges, and income tax
effects, as applicable to each majority-owned subsidiary.
Our non-GAAP financial measures should not be considered a substitute for, or
superior to, financial measures calculated in accordance with U.S. GAAP, and the
financial results calculated in accordance with U.S. GAAP and reconciliations
from these results should be carefully evaluated.
Non-GAAP adjustment or Usefulness to
measure Definition management and
investors
Amortization of
acquisition-related
intangible assets
consists of We exclude amortization
amortization of charges for our
intangible assets such acquisition-related
as developed intangible assets for
technology, brands, and purposes of calculating
customer relationships certain non-GAAP
acquired in connection measures because these
with business charges are
combinations. Charges inconsistent in size
related to the and are significantly
Acquisition-related amortization of these impacted by the timing
adjustments intangibles are and valuation of our
recorded within both acquisitions. These
cost of sales and adjustments facilitate
marketing, general and a useful evaluation of
administrative expenses our current operating
in our U.S. GAAP performance and
financial statements. comparison to our past
Amortization charges operating performance
are recorded over the and provide investors
estimated useful life with additional means
of the related acquired to evaluate cost and
intangible asset, and expense trends.
thus are generally
recorded over multiple
years.
We exclude charges
related to share-based
compensation for
purposes of calculating
certain non-GAAP
measures because we
believe these
adjustments provide
Share-based comparability to peer
compensation consists company results and
of charges related to because these charges
our employee equity are not viewed by
incentive plans. management as part of
Share-based Charges related to our core operating
compensation share-based performance. We believe
compensation are these adjustments
recorded within cost of provide investors with
sales, research and a useful view, through
development, and the eyes of management,
marketing, general and of our core business
administrative. model, how management
currently evaluates
core operational
performance, and
additional means to
evaluate expense
trends, including in
comparison to other
peer companies.
Intel/Page 11
Non-GAAP adjustment or Usefulness to
measure Definition management and
investors
We exclude
Restructuring charges restructuring and other
are costs associated charges, including any
with restructuring adjustments to charges
plans and are primarily recorded in prior
related to employee periods, for purposes
severance and benefit of calculating certain
arrangements. Other non-GAAP measures
charges include because these costs do
Restructuring and periodic goodwill and not reflect our core
other charges asset impairments, and operating performance.
other costs associated These adjustments
with certain non-core facilitate a useful
activities. Q3 2026 and evaluation of our core
Q3 2025 adjustments operating performance
primarily consist of and comparisons to past
charges associated with operating results and
the 2025 Restructuring provide investors with
Plan. additional means to
evaluate expense
trends.
(Gains) losses on
equity investments, net
consists of ongoing
mark-to-market We exclude these
adjustments on non-operating gains and
marketable equity losses for purposes of
securities, observable calculating certain
(Gains) losses on price adjustments on non-GAAP measures to
equity investments, non-marketable equity provide comparability
net securities, related between periods. The
impairment charges, exclusion reflects how
gains (losses) from the management evaluates
sale of equity the core operations of
investments, gains the business.
(losses) from equity
method investments and
other.
We exclude
non-operating gains or
losses resulting from
(Gains) losses are divestitures for
recognized at the close purposes of calculating
of a divestiture, or certain non-GAAP
over a specified measures because they
(Gains) losses from deferral period when do not reflect our
divestitures deferred consideration current operating
is received at the time performance. These
of closing, as a adjustments facilitate
component of interest a useful evaluation of
and other, net. our current operating
performance and
comparisons to past
operating results.
(Gains) losses on
mark-to-market of
Escrowed Shares is a
component of interest
and other, net and
relates to the change
in fair value of the
Escrowed Shares
derivative liability
recognized in
connection with the
Warrant and Common
Stock Agreement with We exclude these
the U.S. Government. non-operating gains and
Charges represent the losses for purposes of
net change in fair calculating certain
(Gains) losses from value of both Escrowed non-GAAP measures to
mark-to-market of Shares released during provide better
Escrowed Shares the quarter and comparability between
Escrowed Shares still periods. The exclusion
held in escrow at reflects how management
quarter end. evaluates the core
Q3 2026 and Q3 2025 per operations of the
share calculations business.
exclude the gain of
$120 million and loss
of $2 million,
respectively, related
to the mark-to-market
of contingent Escrowed
Shares that were
included in the
weighted average shares
of common stock
outstanding-diluted
during the period.
We reference a non-GAAP
financial measure of
adjusted free cash
flow, which is used by
management when
assessing our sources
of liquidity, capital This non-GAAP financial
resources, and quality measure is helpful in
of earnings. Adjusted understanding our
Adjusted free cash free cash flow is capital requirements
flow operating cash flow and sources of
adjusted for (1) liquidity by providing
additions to property, an additional means to
plant, and equipment, evaluate the cash flow
net of proceeds from trends of our business.
capital-related
government incentives
and net SCIP partner
contributions, and (2)
payments on finance
leases.
Intel/Page 12
Intel Corporation
Supplemental Reconciliations of GAAP Actuals to Non-GAAP Actuals
Set forth below are reconciliations of the non-GAAP financial measure to the
most directly comparable U.S. GAAP financial measure. These non-GAAP financial
measures should not be considered a substitute for, or superior to, financial
measures calculated in accordance with U.S. GAAP, and the reconciliations from
U.S. GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to
"Explanation of Non-GAAP Measures" in this document for a detailed explanation
of the adjustments made to the comparable U.S. GAAP measures, the ways
management uses the non-GAAP measures, and the reasons why management believes
the non-GAAP measures provide useful information for investors.
($ In
Millions,
Except Per
Share Three
Amounts; Months Sep 27,
Unaudited) Ended Sep 26, 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP gross $ 7,096 $ 5,218
profit
Acquisitio… 55 101
adjustments
Share-based 133 137
compensati…
Non-GAAP
gross $ 7,284 $ 5,456
profit
GAAP gross
margin 43.0 % 38.2 %
percentage
Acquisitio… 0.3 % 0.7 %
adjustments
Share-based 0.8 % 1.0 %
compensati…
Non-GAAP
gross 44.1 % 40.0 %
margin
percentage
GAAP R&D $ 4,520 $ 4,360
and MG&A
Acquisitio… -17 -17
adjustments
Share-based -453 -411
compensati…
Non-GAAP
R&D and $ 4,050 $ 3,932
MG&A
GAAP
operating $ 2,522 $ 683
income
(loss)
Acquisitio… 72 118
adjustments
Share-based 586 548
compensati…
Restructur…
and other 54 175
charges
Non-GAAP
operating $ 3,234 $ 1,524
income
(loss)
GAAP
operating 15.3 % 5.0 %
margin
(loss)
Acquisitio… 0.4 % 0.9 %
adjustments
Share-based 3.5 % 4.0 %
compensati…
Restructur…
and other 0.3 % 1.3 %
charges
Non-GAAP
operating 19.6 % 11.2 %
margin
(loss)
GAAP tax 11.6 % 6.6 %
rate
Income tax -0.6 % 5.4 %
effects
Non-GAAP 11.0 % 12.0 %
tax rate
GAAP net
income
(loss) $ 3,320 $ 4,063
attributab…
to
Intel
Acquisitio… 72 118
adjustments
Share-based 586 548
compensati…
Restructur…
and other 54 175
charges
(Gains)
losses on
equity -330 -221
investment…
net
(Gains)
losses from 4 -5,452
divestiture
(Gains)
losses on
mark-to-ma… -1,005 1,687
of
Escrowed
Shares
Adjustments
attributab…
to -37 -27
non-contro…
interest
Income tax 92 132
effects
Non-GAAP
net income
(loss) $ 2,756 $ 1,023
attributab…
to Intel
Intel/Page 13
(In Millions,
Except Per
Share Amounts; Three Months
Unaudited) Ended Sep 26, 2026 Sep 27, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
earnings
(loss) per
share $ 0.60 $ 0.90
attributable
to
Intel—dilut…
Acquisition… 0.02 0.03
adjustments
Share-based 0.11 0.12
compensation
Restructuri…
and other 0.01 0.04
charges
(Gains)
losses on
equity -0.06 -0.05
investments,
net
(Gains)
losses from — -1.20
divestiture
(Gains)
losses on
mark-to-mar… -0.17 0.37
of
Escrowed
Shares
Adjustments
attributable
to -0.01 -0.01
non-control…
interest
Income tax 0.02 0.03
effects
Non-GAAP
earnings
(loss) per
share $ 0.52 $ 0.23
attributable
to
Intel—dilut…
GAAP net
cash
provided by $ 5,082 $ 2,546
(used for)
operating
activities
Additions to
property,
plant, and
equipment -4,219 -2,956
(gross
capital
expenditure…
Proceeds
from
capital-rel… 48 54
government
incentives
Partner
contributio… 847 1,346
net
Payments on
finance -119 -94
leases
Adjusted
free cash $ 1,639 $ 896
flow
GAAP net
cash
provided by $ -19,590 $ -6,250
(used for)
investing
activities
GAAP net
cash
provided by $ 23,309 $ 5,152
(used for)
financing
activities
Intel/Page 14
Intel Corporation
Supplemental Reconciliations of GAAP Outlook to Non-GAAP Outlook
Set forth below are reconciliations of the non-GAAP financial measure to the
most directly comparable U.S. GAAP financial measure. These non-GAAP financial
measures should not be considered a substitute for, or superior to, financial
measures calculated in accordance with U.S. GAAP, and the financial outlook
prepared in accordance with U.S. GAAP and the reconciliations from this Business
Outlook should be carefully evaluated. Please refer to "Explanation of Non-GAAP
Measures" in this document for a detailed explanation of the adjustments made to
the comparable U.S. GAAP measures, the ways management uses the non-GAAP
measures, and the reasons why management believes the non-GAAP measures provide
useful information for investors.
(Unaudited) Q4 2026 Outlook1
Approximately
GAAP gross margin percentage 37.1 %
Acquisition-related adjustments 0.2 %
Share-based compensation 0.7 %
Non-GAAP gross margin percentage 38.0 %
GAAP tax rate 31 %
Income tax effects -20 %
Non-GAAP tax rate 11 %
GAAP earnings (loss) per share $ 0.10
attributable to Intel—diluted
Acquisition-related adjustments 0.01
Share-based compensation 0.11
Adjustments attributable to -0.01
non-controlling interest
Income tax effects 0.04
Non-GAAP earnings (loss) per share $ 0.25
attributable to Intel—diluted
1 Non-GAAP gross margin percentage and non-GAAP earnings (loss) per share
attributable to Intel outlook based on the mid-point of the revenue range.
Intel/Page 15
Intel Corporation
Supplemental Reconciliations of GAAP Operating Expenses to Non-GAAP Operating
Expenses
Set forth below are reconciliations of non-GAAP operating expenses to the most
directly comparable U.S. GAAP financial measure, GAAP operating expenses. This
non-GAAP financial measure should not be considered a substitute for, or
superior to, financial measures calculated in accordance with U.S. GAAP, and the
reconciliations should be carefully evaluated. Please refer to "Explanation of
Non-GAAP Measures" in this document for a detailed explanation of the
adjustments made to the comparable U.S. GAAP measure, the ways management uses
the non-GAAP measure, and the reasons why management believes the non-GAAP
measure provides useful information for investors.
Q4 2026 Outlook Full-Year 2026
(In Billions; Unaudited) Approximately Approximately
──────────────────────────────────────────────────────────────────────────────
GAAP operating expenses $ 4.9 $ 22.6
Acquisition-related — -0.1
adjustments
Share-based compensation -0.5 -1.9
Restructuring and other — -4.3
charges
Non-GAAP operating expenses $ 4.4 $ 16.3
Contacts:
Investor Relations
investor.relations@intel.com
Abby Zhang
Media Relations
abby.zhang@intel.com