AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · IP and operating manufacturing capabilities are substantial, but disclosed share losses and process disadvantages show weak current competitive protection.
durability · 1/4 · Rapid product obsolescence, manufacturing delays and failed accelerator commercialization weaken the durability of existing assets. Successive-generation leadership is not demonstrated.
customer dependency · 2/4 · Higher server volumes and paid long-term customer deposits demonstrate demand and commitment, but historical share losses and generally cancellable purchase orders limit evidence of dependence on Intel.
erosion resilience · 1/4 · Realized share losses, process disadvantages and Gaudi charges show poor resilience to competitive change. Recent demand recovery is favorable but does not establish restored protection.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Server ASPs rose 48% in Q2 and 38% in the first half of 2026, with actual demand-based pricing actions. Most of the increase reflects premium mix, and pricing partly offsets higher input costs during supply constraints.
retention · 2/4 · Indirect operating evidence is mixed: higher hyperscaler demand, server volume growth and deposits support continuing demand, while market-share losses demonstrate customer migration. No retention rate is inferred.
margin resilience · 2/4 · Q2 gross profit improved materially, but higher premium-product unit costs offset some gains; Q1 revenue benefits were substantially offset by unit costs. Lower inventory charges and reserve releases also contributed, limiting evidence of durable pricing-led resilience.
contractual freedom · 2/4 · Variable product pricing, discounts and realized pricing actions demonstrate flexibility to negotiate prices. Customers generally retain penalty-free cancellation rights, while newer long-term deposits demonstrate some commitment without disclosed price-reset or cancellation terms.
Predictability34
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 0.00
- Revenue growth volatility (pp)
- 8.23
- Positive FCF years (%)
- 20.00
- FCF margin volatility (pp)
- 15.55
Financial strength25
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 0.00
- currentRatioGrade
- 100.00
- Interest coverage (x)
- -2.03
- Current ratio (x)
- 2.02
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 3.33
- 3-year average SBC / revenue (%)
- 5.66
- cashConversionGrade
- 0.00
Management44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 1/4 · Lower capital commitments, expense reductions and improved operating cash flow are favorable. Excess capacity, a realized delay penalty, equity financing and the subsequent $14.2 billion Ireland SCIP repurchase show a fragile capital-allocation record. Repurchase economics are not established, and the terminated Ireland agreements are not assumed to impose continuing penalties.
incentive alignment · 2/4 · Actual 2025 equity compensation, performance-based PSU settlement and the hedging prohibition support alignment. Adjusted bonus metrics and CEO change-in-control vesting at target performance weaken a strict pay-for-performance interpretation. Ownership levels and realized long-term outcomes are missing.
execution · 2/4 · Operating evidence shows expense reductions, improved cash generation, server growth and collected customer deposits. These achievements coexist with process delays, unsuccessful accelerators and unmet demand from internal supply constraints. This assesses company execution across periods, not the current CEO's personal responsibility for earlier failures.
governance · 2/4 · Disclosed independent committees, compensation approval procedures, related-party transaction review and the unqualified internal-control opinion establish functioning safeguards. These support a mixed assessment rather than exceptional governance effectiveness or independence across every strategic decision.
Evidence
Intellectual Property We own and develop significant IP and related IP rights around the world that support our products, services, R&D and other activities and assets.
Intellectual Property · Filed 23/01/2026
and other countries. Because of the fast pace of innovation and product development, our products are often obsolete before the patents related to them expire, and in some cases our products may be obsolete before the patents are granted.
Intellectual Property / technological obsolescence · Filed 23/01/2026
For example, we have lost market share in recent years, including in both client and data center markets, in the market for x86-based semiconductor products, and more generally in the markets for semiconductor compute products, as competitors have introduced highly competitive data center and client platform products.
Risk Factors / realized market-share losses · Filed 23/01/2026
These delays have allowed competitors using third-party foundries, such as TSMC, to benefit from advancements in manufacturing processes introduced ahead of us, including improvements in performance, energy efficiency and other features, which have helped increase the competitiveness of their products.
Risk Factors / manufacturing delays and competitors · Filed 23/01/2026
Our most recent efforts to compete in the accelerator market with our Gaudi AI accelerators was unsuccessful, as a result of which we recognized Gaudi AI accelerator inventory-related charges of $375 million in 2025 and $922 million in 2024.
Risk Factors / unsuccessful Gaudi accelerators and inventory charges · Filed 23/01/2026
In 2025, our key production fabs were in Oregon (ramping Intel 18A), Arizona (Intel 7 and ramping Intel 18A), Ireland (Intel 4 and Intel 3) and Israel (Intel 7).
Manufacturing / operating production fabs · Filed 23/01/2026
▪Losses with Respect to our Investments in R&D and Manufacturing Facilities and Equipment: We had over $100 billion of property, plant and equipment, net on our balance sheet as of December 27, 2025, the substantial majority of which we estimate relate to our foundry business.
Risk Factors / manufacturing investment base · Filed 23/01/2026
As we pursue our strategy to establish Intel Foundry as a major provider of foundry capacity to manufacture semiconductors for others, we face intense competition from well-established competitors such as TSMC, Samsung, Global Foundries, UMC and SMIC.
Risk Factors / named foundry competitors · Filed 23/01/2026
In connection with the preparation of our Consolidated Condensed Financial Statements for the second quarter of 2025, we evaluated our process technology node capacities relative to projected market demand for our products and services, and concluded that our manufacturing asset portfolio exceeded manufacturing capacity requirements.
Property, Plant, and Equipment / excess manufacturing capacity in 2025 · Filed 24/07/2026
Intel Foundry revenue increased, and All Other revenue decreased, compared to Q2 2025 and YTD 2025, primarily due to Altera's transition to an external customer following the deconsolidation of Altera in Q3 2025.
MD&A / Altera deconsolidation and foundry revenue · Filed 24/07/2026
▪DCAI revenue increased $2.3 billion from Q2 2025 and $3.2 billion from YTD 2025, primarily driven by higher server revenue, which increased $2.0 billion in Q2 2026 and $2.7 billion in YTD 2026 due to ASP increases of 48% and 38%, respectively.
MD&A / Q2 and first-half 2026 server ASP increases · Filed 24/07/2026
The majority of the increase in server ASPs was driven by a higher mix of premium products sold in Q2 2026 and YTD 2026, with demand-based pricing actions contributing to a lesser extent, in part to offset higher input costs.
MD&A / premium mix and demand-based pricing actions · Filed 24/07/2026
Server volume increased 9% compared to Q2 2025 and 2% compared to YTD 2025, primarily driven by higher hyperscaler demand.
MD&A / server volume and hyperscaler demand · Filed 24/07/2026
Market demand exceeded our available product supply in Q2 2026 and YTD 2026 due to internal supply constraints.
MD&A / server demand and internal supply constraints · Filed 24/07/2026
In Q1 2026, we entered into long-term arrangements with customers that included deposits totaling $1.7 billion, which were reflected within other accrued liabilities and other long-term liabilities, and for which the related cash was received in Q2 2026.
Liquidity and Capital Resources / customer deposits received · Filed 24/07/2026
Because our customers generally order from us on a purchase order basis, they can typically cancel, change or delay product purchase commitments with little or no notice to us and without penalty.
Sales terms / customer cancellation rights · Filed 23/01/2026
Pricing on particular products may vary based on volumes ordered and other factors.
Sales terms / volume-based pricing · Filed 23/01/2026
We also offer discounts, rebates and other incentives to customers to increase acceptance of our products and technology.
Sales terms / discounts, rebates and incentives · Filed 23/01/2026
Q2 2026 vs. Q2 2025 Our consolidated gross profit in Q2 2026 increased by $3.0 billion, or 84%, compared to Q2 2025, primarily driven by $1.5 billion of higher product profit in Q2 2026, primarily related to higher revenue, partially offset by higher unit costs resulting from an increased mix of premium products sold in Q2 2026.
MD&A / Q2 2026 gross-profit improvement and unit costs · Filed 24/07/2026
Lower period charges also resulted from $294 million of lower inventory-related charges taken in YTD 2026 as compared to YTD 2025, primarily due to the absence of Gaudi AI accelerator inventory-related charges incurred in YTD 2025 and $226 million of lower reserves resulting from the sell-through of inventory with lower of cost or net realizable value reserves recognized during the early ramp of our Intel 18A process node, partially offset by an inventory-related charge recognized in YTD 2026 to align product mix with customer demand.
MD&A / first-half inventory charges and reserve releases · Filed 24/07/2026
The impact of higher revenue to gross profit in Q1 2026 was substantially offset by higher unit costs resulting from an increased mix of premium products sold in Q1 2026.
MD&A / Q1 revenue gains offset by higher unit costs · Filed 24/04/2026
Discounted and undiscounted lease payments under non-cancelable leases as of December 27, 2025, were as follows: (In Millions) 2026 2027 2028 2029 2030 Thereafter Total Operating lease payments $ 94 $ 74 $ 63 $ 46 $ 45 $ 100 $ 422 Finance lease payments $ 96 $ 6 $ 6 $ 3 $ 3 $ 19 $ 133 Present value of lease payments $ 473 Commitments Commitments for capital expenditures totaled $12.8 billion as of December 27, 2025 ($20.0 billion as of December 28, 2024), a majority of which will be due within the next 12 months.
Commitments / capital expenditures at December 27, 2025 · Filed 23/01/2026
For example, in the fourth quarter of 2024, we recognized a $755 million charge related to penalties we expect to pay in connection with Ireland SCIP for construction delays we decided to make as we reduced our near-term capacity requirements.
Risk Factors / realized Ireland SCIP delay penalty charge · Filed 23/01/2026
On April 8, 2026, we reacquired Apollo's 49% minority ownership interest in Ireland SCIP for aggregate cash consideration of $14.2 billion, inclusive of transaction costs.
Non-Controlling Interests / April 2026 Ireland SCIP repurchase · Filed 24/07/2026
As of June 27, 2026, we own 100% of Ireland SCIP and the related operating and other ancillary agreements between Ireland SCIP, ourselves and Apollo have been substantially terminated.
Non-Controlling Interests / termination of Ireland SCIP agreements · Filed 24/07/2026
Cash provided by operations in the first six months of 2026 was higher compared to the first six months of 2025, primarily due to higher revenues and lower operating expenses after adjusting for non-cash items in the first six months of 2026 compared to the first six months of 2025.
Liquidity and Capital Resources / operating cash-flow improvement · Filed 24/07/2026
MD&A 35 Table of Contents Consolidated R&D and MG&A Expenses Total R&D and MG&A expenses for Q2 2026 were $4.5 billion, down 6% from Q2 2025, and $9.0 billion for YTD 2026, down 7% from YTD 2025.
MD&A / realized R&D and administrative expense reductions · Filed 24/07/2026
Our executive compensation elements for 2025 included base salary, an annual cash bonus and long-term incentive equity awards consisting of annual RSUs, Options (for our CEO) and PSUs.
Compensation Discussion and Analysis / actual 2025 compensation elements · Filed 23/03/2026
PSUs are not settled into shares of our common stock until after the end of the performance period based on actual performance results, even if the holder qualifies for early vesting.
Compensation / PSU settlement based on actual performance · Filed 23/03/2026
Adjustments were made starting from the company’s reported consolidated GAAP revenue ($52.9 billion), non-GAAP gross margin percentage (36.7%) and non-GAAP operating expense ($16.5 billion) and adjusting such numbers to a result that was designed to reflect what would have been achieved had Altera continued to be fully owned by Intel through the end of fiscal 2025 and achieved the results forecasted for the remainder of 2025 at the time of the divestiture.
Compensation / adjustments to 2025 bonus metrics · Filed 23/03/2026
Tan’s employment is terminated by the company without cause or he resigns for good reason (as each of those terms is defined in the Tan Offer Letter), and he signs and does not revoke a release of claims in favor of Intel, each of the equity grants set forth in the Tan Offer Letter will be eligible to receive pro-rated vesting with respect to (i) 67% of outstanding and unvested shares subject to such award (at target performance, if applicable) if the termination of employment occurs prior to September 18, 2026 and (ii) 100% of outstanding and unvested shares subject to such award (at target performance, if applicable) if the termination of employment occurs on or after September 18, 2026.
Compensation / CEO change-in-control vesting terms · Filed 23/03/2026
No hedging or pledging of Intel common stock by executives or directors
Executive compensation governance / hedging and pledging prohibition · Filed 23/03/2026
In addition, all directors who serve on the Audit Committee and Compensation Committee satisfy heightened SEC and Nasdaq independence requirements.
Board independence / Audit and Compensation Committee requirements · Filed 23/03/2026
The committee receives input from management, but executive officers do not propose, recommend or seek approval for their own compensation.
Executive compensation governance / officers do not propose their own compensation · Filed 23/03/2026
The Audit Committee reviewed and approved each of these transactions.
Related-party transactions / Audit Committee review and approval · Filed 23/03/2026
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 27, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 22, 2026 expressed an unqualified opinion thereon.
Auditor opinion / internal control over financial reporting · Filed 23/01/2026
2 Table of Contents Consolidated Condensed Statements of Operations Three Months Ended Six Months Ended (In Millions, Except Per Share Amounts; Unaudited) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Net revenue $ 16,128 $ 12,859 $ 29,705 $ 25,526 Cost of sales 9,619 9,317 17,849 17,312 Gross profit 6,509 3,542 11,856 8,214 Research and development 3,368 3,684 6,743 7,324 Marketing, general, and administrative 1,175 1,144 2,213 2,321 Restructuring and other charges 170 1,890 4,240 2,046 Operating expenses 4,713 6,718 13,196 11,691 Operating income (loss) 1,796 (3,176) (1,340) (3,477) Gains (losses) on equity investments, net (39) 502 (111) 390 Interest and other, net (12,576) (95) (13,314) (268) Income (loss) before taxes (10,819) (2,769) (14,765) (3,355) Provision for (benefit from) taxes 29 255 364 556 Net income (loss) (10,848) (3,024) (15,129) (3,911) Less: net income (loss) attributable to non-controlling interests 185 (106) (368) (172) Net income (loss) attributable to Intel $ (11,033) $ (2,918) $ (14,761) $ (3,739) Earnings (loss) per share attributable to Intel—basic $ (2.16) $ (0.67) $ (2.89) $ (0.86) Earnings (loss) per share attributable to Intel—diluted $ (2.16) $ (0.67) $ (2.89) $ (0.86) Weighted average shares of common stock outstanding: Basic 5,104 4,369 5,108 4,356 Diluted 5,104 4,369 5,108 4,356 See accompanying notes.
Unaudited consolidated statements / first-half 2026 operating results and share counts · Filed 24/07/2026
government that we attributed for accounting purposes to common stock, warrants and Escrowed Shares issued, proceeds received from private sales of our common stock to Nvidia and Softbank Group, the absence of dividend payments, and proceeds from the sale of Mobileye shares, in each case in 2025 as compared to 2024.
Liquidity and Capital Resources / equity financing and asset-sale proceeds · Filed 23/01/2026
