INTC Intel 10-Q 2026-09-26 section summaries

Cover page

Intel Corporation filed a Form 10-Q for the quarter ended September 26, 2026. Intel is incorporated in Delaware, is a large accelerated filer, and its common stock trades on Nasdaq under the ticker symbol INTC.

Forward-Looking Statements

Intel’s forward-looking statements address expected financial performance—including revenue, gross margins, capital expenditures, cash flows, funding needs, and credit ratings—as well as product and process roadmaps, manufacturing capacity and foundry plans, restructuring and efficiency efforts, growth, demand, market share, AI, government support, and trade-policy effects.

The statements are subject to substantial uncertainty. Intel faces intense competition and rapid technological change, and its long-term investments in research and development and manufacturing may not generate adequate returns. Developing and deploying new products and process technologies is uncertain. In particular, advancing Intel 14A and other leading-edge nodes involves significant expansion spending and depends on securing external customer designs and demand commitments. Results may also be affected by demand and margin variability, debt and access to capital, reliance on alternative financing and government grants, the U.S. government’s acquisition of significant equity interests in Intel, and risks associated with strategic transactions.

Operational risks include reliance on a complex global supply chain that uses external foundries; industry-wide substrate and memory shortages; potential disruptions and delays; and uncertainty about future product supply and capacity. Geopolitical and trade risks include U.S.–China and Taiwan-related tensions, conflict in Israel and the Middle East, Russia’s war on Ukraine, and changes in tariffs and export controls.

Other risks identified include uncertainty in AI-market demand; product defects and security vulnerabilities; cybersecurity and privacy threats; intellectual-property litigation; retaining talent; customer concentration and reliance on third-party sales channels; regulatory and tax changes; currency movements; and environmental and product-safety requirements.

The statements reflect management’s expectations as of the filing date, may rely on third-party information, and generally exclude potential effects of transactions that have not been completed. Intel undertakes no duty to update them except as required by law.

Intel — Financial statements

Consolidated results

Q3 revenue grew 21%, with gross profit and operating income improving substantially. Nine-month operating results also improved, but the company reported a large attributable net loss, primarily reflecting volatile non-operating items. Interest and other, net was income of $1.130B in Q3 versus $3.670B, but a loss of $12.184B for 9M versus income of $3.402B. Escrowed-share derivative fair-value changes were a major driver: a Q3 gain of $1.005B versus a $1.687B loss, but a 9M loss of $12.614B versus a $1.687B loss. The prior-year 9M comparison also included a $5.546B Altera divestiture gain. Potentially dilutive shares were excluded from 9M 2026 EPS because of the net loss.

Segments

DCAI and Foundry revenue growth accelerated in Q3 relative to 9M: DCAI revenue was $18.632B versus $12.182B for 9M, while Foundry revenue was $17.883B versus $13.319B. CCPG revenue was $24.701B versus $24.035B for 9M. Foundry’s 9M operating loss narrowed to $6.379B from $7.809B; DCAI operating income rose to $7.055B from $2.172B, while CCPG was $7.144B versus $7.108B. Foundry revenue includes substantial intersegment activity; external Foundry and assembly/test revenue was $411M in Q3 and $878M for 9M, versus $32M and $85M, respectively. Intel renamed its Client Computing Group CCPG. Segment results exclude certain restructuring, share-based compensation and acquisition-related costs.

Cash flow and financing

Operating cash flow rose despite the net loss; working-capital uses included $1.450B for inventory. Financing included $22.617B net proceeds from a public common-stock offering, $13.000B of term-debt issuance and $9.000B of repayments. Partner distributions were $14.442B versus $159M. Cash, cash equivalents and restricted cash increased to $22.398B from $14.712B at the beginning of the period. Shares outstanding increased from 4.994B at December 27, 2025, to 5.310B at September 26, 2026.

Balance sheet and key exposures

Identified intangible assets are presented separately from goodwill. Intel stockholders’ equity less goodwill and identified intangibles implies tangible common equity of approximately $92.005B. Debt included $3.817B short-term and $46.317B long-term.

Intel issued approximately 242M shares at $95 per share in August, receiving $23.0B gross and $22.6B net proceeds after $383M of offering costs. At period-end, 132M Escrowed Shares remained; 66M were included in basic EPS and 66M were contingent on government disbursements. The related derivative liability was $13.705B, up from $2.654B at year-end, and was the principal source of the period’s earnings volatility. DOC warrants cover up to 241M shares at $20 per share if Intel’s Foundry ownership falls below 51%; they were excluded from EPS because they were not expected to become exercisable.

Intel recognized a non-cash $3.9B Mobileye goodwill impairment in Q1, leaving Mobileye goodwill of $4.3B versus $8.2B at year-end. The estimated fair value exceeded carrying value by less than 10%; a 1-percentage-point higher discount rate would have caused approximately $682M of additional impairment. Nine-month restructuring and other charges were $4.294B versus $2.221B, including $3.944B of asset impairments, primarily the Mobileye charge.

Intel repurchased Apollo’s 49% Ireland SCIP interest for $14.2B, including transaction costs, in Q2; it now owns 100% of the entity. Arizona SCIP received $5.032B of partner contributions in 9M, and total non-controlling interests were $16.642B, including $14.372B for Arizona SCIP. Arizona’s factories remain partly under construction, and production contracts require minimum output and limit excess on-site inventory.

Intel settled $2.5B of senior notes due in 2026 and issued $6.5B of senior notes in Q2, with maturities from 2031 to 2066 and coupons of 4.65% to 6.20%. Revolving facility capacity was $14.5B at quarter-end, increasing to $15.0B on October 1; there were no revolving borrowings outstanding. Marketable debt investments had a fair value of $39.523B, including $21.454B due within one year. Tax receivables, primarily related to AMIC claims, totaled $9.9B. Intel’s 49% equity-method investment in Altera was carried at $3.1B; it continued to supply wafers to Altera, generating $126M of Q3 and $446M of 9M revenue. In October, Intel agreed to acquire Classiq Technologies for approximately $1.9B plus up to $350M contingent consideration, with closing expected in the first half of 2027.

Commitments

At September 26, 2026, Intel’s capital-expenditure commitments and other purchase obligations had increased materially from December 27, 2025.

Most capital commitments are due within 12 months, while most other purchase obligations are due beyond 12 months. After Q3, Intel signed additional supply agreements to secure future substrate supply, with estimated total funding requirements of $5.3B–$6.1B. Approximately $3.3B is expected to be paid by the end of 2027; some agreement terms remain unfinalized.

Recorded legal liabilities and exposure

At September 26, 2026, Intel had recorded approximately $1.0B for VLSI litigation and $312M for the European Commission (EC) fine, including foreign-currency revaluation and accrued interest. Intel cannot reasonably estimate potential losses above either recorded amount. Other legal matters also involve uncertain exposure; adverse rulings could result in substantial damages, fines, royalties, injunctions, product restrictions, or required changes to business practices.

EC competition matter

The EC’s original €1.1B fine, paid in 2009, was returned in February 2022 after the General Court annulled the EC’s rebate findings; the Court of Justice upheld that judgment in October 2024. A separate finding involving payments to prevent sales of competing products remains. The EC imposed a €376M ($401M) fine in September 2023. The General Court reduced it in December 2025 to €237M ($277M), and Intel appealed in February 2026. Intel has accrued $312M for this matter.

VLSI patent litigation

VLSI is Intel’s principal quantified litigation exposure, with several proceedings and outcomes unresolved.

• First Texas case: The Federal Circuit reversed a $675M infringement finding and vacated a $1.5B award involving another patent, remanding for further damages proceedings. It also allowed Intel to pursue a license defense. A related Patent Trial and Appeal Board (PTAB) review found all claims at issue unpatentable, subject to VLSI appeals.
• Second Texas case: The jury found no infringement. VLSI had sought about $3.0B; post-trial matters remain pending.
• Third Texas case: A jury awarded VLSI about $949M, plus interest and a running royalty. Intel’s license defense remains under consideration after a 2025 jury verdict in Intel’s favor on an underlying factual question.
• Other proceedings: In April 2026, the Federal Circuit reversed and remanded a separate non-infringement ruling involving one of eight patents. Chinese proceedings have largely resulted in dismissals or non-infringement findings, including an August 2026 ruling for Intel by China’s Supreme People’s Court; a patent-validity appeal remains pending.

Other intellectual-property matters

EireOg filed eight customer suits alleging infringement by products containing Intel CPUs and seeks more than $2.0B in past and future damages across the cases. Intel is indemnifying AWS, Cisco, Dell, HPE, IBM, Lenovo, and Oracle for certain accused products. In April 2026, a Cisco jury found no infringement and found the factual predicate for Intel’s license defense. The other cases were stayed pending post-trial proceedings and any appeal.

In the Media Content Protection case, the plaintiff sought $66M–$398M. The court found both patents invalid in November 2025 and entered judgment for Intel in December 2025; the plaintiff appealed.

Security, securities, and derivative matters

A U.S. consumer class action concerning the Downfall security vulnerability ended with judgment for Intel in September 2026 and is now on appeal. Earlier consolidated U.S. Spectre/Meltdown litigation ended in Intel’s favor in 2023. Canadian proceedings remain at early stages or stayed.

A securities class action alleging misleading statements about foundry growth and prospects following Intel’s 2024 segment-reporting change was dismissed with judgment for defendants in July 2025; plaintiffs appealed, and related derivative cases are stayed. A separate derivative suit filed in March 2026 challenges the 2025 Warrant and Common Stock Agreement with the U.S. Department of Commerce; defendants moved to dismiss in May 2026.

Key terms and strategic context

• 2024 Restructuring Plan: Intended to reduce operating expenses, capital expenditures, and cost of sales while maintaining investment in Intel’s core strategy.
• 2025 Restructuring Plan: Approved in Q2 2025 to streamline the organization, reduce management layers and expenses, and redirect resources toward core client and server businesses from lower-priority programs.
• CCPG refers to Intel’s Client Computing and Physical AI Group, formerly called the Client Computing Group (CCG). DCAI means Data Center and Artificial Intelligence.
• Altera is Intel’s programmable-semiconductor business, primarily focused on FPGAs. SCIP means the Semiconductor Co-Investment Program.

CHIPS Act Secure Enclave and named entities

Under the CHIPS Act Secure Enclave arrangement, Intel common shares are held in escrow for potential release to the U.S. Department of Commerce (DOC) as Intel performs and receives cash proceeds. If shares remain in escrow at the end of the performance period, half are released to the DOC without consideration and half are forfeited and canceled.

The glossary also identifies Mobileye, IMS Nanofabrication, Mentee Robotics, Apollo, Brookfield, SK hynix, and Silver Lake Partners.

Funding and investment

On August 12, 2026, Intel issued approximately 242 million common shares in a public offering, raising $22.6 billion net for general corporate purposes, including capital expenditures and working capital. The issuance materially increased Intel’s share count and provided funding for operations and investment.

Intel’s 18A products entered high-volume production in early 2026, and 18A-P entered risk production in June 2026. Intel is advancing development and customer evaluation of Intel 14A while accelerating related manufacturing expansion. The scale and pace of that expansion depend on committed demand for Intel products and external-customer design wins. Leading-edge development and capacity investments are capital-intensive, take years to generate returns, and carry execution and return-on-investment risk; Intel says it will invest where it sees a clear path to acceptable returns.

Demand, supply and manufacturing disruption

Data-center demand remained strong in Q3 and year to date 2026 amid AI-infrastructure investment, and Intel expects strength to continue into Q4 and beyond. Demand for certain data-center products exceeded available supply, particularly where advanced packaging relies on constrained substrates.

Client-product demand declined in Q3 compared with H1 2026. Intel attributed the decline to higher component prices—especially memory—constrained IT budgets, and tighter inventory management, and expects these headwinds to worsen in Q4 and persist through 2027. Industry shortages of substrates, memory, and other components constrained availability in Q3 and year to date and are expected to continue into 2027. Intel is adding manufacturing capacity and securing supply through long-term agreements, but has limited ability to mitigate memory shortages. Constraints could both prevent Intel from meeting demand in some markets and weaken demand in price-sensitive client markets.

An accident at Intel’s Kiryat Gat fab in mid-October 2026 caused employee casualties and injuries and suspended manufacturing for approximately two weeks. Operations were expected to resume by the end of October. Intel expects Q4 charges for scrapped inventory, remediation and cleanup, and excess capacity from under-absorbed overhead. Reduced output and operating inefficiencies are expected to weigh on manufacturing costs, gross profit, and operating results in Q4 2026 and through H1 2027. The financial impact and potential insurance recovery are not yet estimable; the outcome depends on damage, disruption duration, remediation costs, recoveries, and mitigation through Intel’s global manufacturing network.

Share-price-related earnings volatility

U.S. government escrowed shares produced a $1.0 billion fair-value gain in Q3 2026, driven by the quarterly decline in Intel’s stock price, but a $12.6 billion fair-value loss year to date in 2026, driven by the stock-price increase over that period. The related derivative liability was $13.7 billion at Q3-end, recorded in other accrued liabilities and other long-term liabilities. Further gains or losses will vary with Intel’s share price and may cause substantial earnings volatility.

Geopolitical and supply risks

The U.S.-Israel-Iran conflict disrupted supply chains and shipping, raised energy prices, and contributed to helium shortages. Helium is an essential semiconductor-manufacturing input, and strikes on Qatari energy fields affected facilities supplying a meaningful share of global helium. Intel was among companies threatened by Iran.

A significant portion of Intel’s current and anticipated future revenue comes from Intel 7 products manufactured at its Israel fab. Intel has no business-interruption insurance for war or political violence and self-insures Israeli property, plant, and equipment against these risks. Disruption or damage—particularly at the fab or Israeli product-development centers—could materially harm Intel’s results and financial position.

Altera and comparability

Intel sold 51% of Altera and deconsolidated it effective September 12, 2025; Altera’s results were consolidated through September 11, 2025. This affects year-over-year comparability.

Operating segment results

Intel Products includes intersegment activity. The table shows Q3 results and, where the 9M growth rate differed from Q3 by at least 3 percentage points, the corresponding 9M figures.

*9M figures are included only where the 9M growth rate differed from Q3 by at least 3 percentage points. Q3 operating margins were 35% versus 29% for Intel Products; 28% versus 32% for CCPG; 42% versus 23% for DCAI; 28% loss versus 55% loss for Intel Foundry; and 26% versus 10% for All Other. For the 9M periods, margins were 33% versus 26% for Intel Products, 29% versus 30% for CCPG, and 38% versus 18% for DCAI.

Segment drivers and trends

CCPG: Q3 client revenue declined $424M to $6.9B as volume fell 14% amid softer demand and competition. A 9% increase in ASPs, supported by pricing and premium-product mix, partly offset the volume decline. Other CCPG revenue was $1.2B, down $14M. Demand from clients had exceeded available supply in the first half but eased in Q3. Q3 operating income fell $409M, including $763M of higher period charges, primarily inventory-related charges to align product mix with demand; $228M of lower operating expenses from cost reductions partly offset the decline. For 9M, client revenue rose $763M to $21.3B as ASPs increased 17%, partly offset by 12% lower volume; other revenue fell $97M to $3.4B. Higher product profit of $800M and $735M of lower operating expenses were largely offset by $1.5B of higher period charges, primarily inventory-related.

DCAI: Q3 server revenue increased $2.5B, with server ASPs up 54%—mainly due to premium mix, and also demand-based pricing—and volume up 10% on stronger hyperscaler demand. Other DCAI revenue rose $743M to $1.4B, driven by purpose-built silicon. For 9M, server revenue rose $5.2B as ASPs increased 44% and volume increased 4%; other revenue rose $1.3B to $3.3B. Industry supply constraints limited Intel’s ability to meet demand. Intel was adding factory capacity but expected constraints to continue into 2027. Q3 operating income benefited from $2.2B of higher product profit from server revenue, partly offset by higher unit costs from premium mix. For 9M, $4.5B of higher product profit and $403M of lower period charges—including the absence of prior-year Gaudi accelerator inventory charges—were partly offset by higher server unit costs.

Intel Foundry: Q3 intersegment revenue was $6.3B, up $2.1B, while external revenue was $411M, up $379M, mainly from a non-recurring contract. For 9M, intersegment revenue was $17.0B, up $3.8B; external revenue was $878M, up $793M, primarily because Altera became an external customer after its 2025 deconsolidation. Internal growth reflected higher volumes on Intel 18A, Intel 3 and Intel 4, which have higher ASPs than predecessor nodes, and more back-end services. Q3 loss improvement reflected $793M of lower period charges, partly offset by $219M of higher process-technology investment expense. For 9M, lower period charges of $2.6B—including the absence of $797M in Q2 2025 non-cash impairment and accelerated depreciation and $601M of lower inventory charges—were partly offset by $936M of lower product profit, largely from a higher-cost Intel 18A wafer mix, and $231M of higher process-technology investment expense. Intel aims to build a more significant external foundry business, while the business currently primarily supports internal manufacturing.

All Other: Revenue declines of $301M in Q3 and $968M for 9M primarily reflected Intel’s 2025 sale of a 51% stake in Altera and its resulting deconsolidation. Mobileye revenue was $493M in Q3, roughly flat, and $1.6B for 9M, up $109M on higher EyeQ product demand. Improved results from other businesses drove All Other’s operating-income gains, partly offset by the absence of Altera’s contribution.

Intel Q3 2026 results

Revenue increased 21% in Q3 and 18% year to date, with growth led by Intel Products. Q3 Intel Products revenue rose 22% year over year: DCAI increased 78%, mainly from a richer premium-product mix and, to a lesser extent, demand-based pricing; CCPG declined 5%, as weaker client volume and competition outweighed higher client average selling prices. For YTD, Intel Products grew 20%, with DCAI up 53% and CCPG up 3%. Intel Foundry revenue rose in Q3 primarily due to a non-recurring foundry contract. All Other revenue declined following Altera’s deconsolidation in Q3 2025, when it became an external customer.

Gross profit growth reflected $1.6B of higher Q3 product profit, primarily from revenue growth, partly offset by higher unit costs associated with premium-product mix. Lower Intel 3/4 process-node charges added $328M, partly offset by higher inventory-related charges. YTD gross profit improved by $5.5B: $2.9B from higher product profit and $2.6B from lower period charges. Those lower charges included the absence of $797M of prior-year non-cash manufacturing-asset impairment and accelerated depreciation, as well as lower process-node and inventory charges.

Q3 R&D and MG&A combined increased 4%, but declined to 27.4% of revenue from 31.9%. Higher product and process-technology investment and incentive compensation increased R&D, partly offset by Altera’s deconsolidation. Cost reductions and Altera’s deconsolidation reduced MG&A, partly offset by higher share-based compensation. YTD, combined expenses declined 4% and fell to 29.2% of revenue from 35.7%, reflecting cost reductions and Altera’s deconsolidation. Intel continues to invest in product and process roadmaps and expects 2026 R&D and MG&A to remain below recent historical levels.

Q3 operating income increased to $2.522B, with operating margin of 15.3% versus 5.0%. YTD restructuring and other charges included $3.944B of non-cash goodwill impairment; employee severance charges declined to $290M from $1.754B. The 2025 and 2024 restructuring plans were substantially completed by 2025, with remaining actions expected by Q4 2026.

Non-operating items, taxes and comparability

Q3 Intel-attributable net income included a $1.0B net gain from the fair-value change in the Escrowed Shares derivative liability, compared with a $1.7B loss in Q3 2025. The prior-year quarter also included a $5.5B pre-tax gain from selling 51% of Altera. YTD interest and other, net swung to a $12.184B expense, largely reflecting a $12.6B net loss from the Escrowed Shares derivative fair-value change, versus a $1.7B loss in the prior-year period. YTD 2026 also included a $223M benefit from revaluing Ireland SCIP liquidated-damages provisions; the prior-year period included the Altera sale gain and $191M of NAND-sale charges. These items materially affect period comparability.

Q3 equity-investment gains included $351M of upward observable price adjustments on two non-marketable investments, partly offset by equity-method losses. YTD gains included $531M of upward observable price adjustments and realized sale gains, partly offset by impairments and marketable-equity mark-to-market and equity-method losses.

Despite a YTD pre-tax loss of $10.783B, Intel recorded an $826M tax provision. Intel could not benefit from its current-year domestic pre-tax loss because of a domestic valuation allowance; the lower YTD provision primarily reflected share-based-compensation deductions. YTD Mobileye’s $887M loss, driven by the goodwill impairment, contributed to the $168M loss attributable to noncontrolling interests, partly offset by Arizona SCIP income. Intel acquired the remaining Ireland SCIP minority interests in Q2 2026, ending noncontrolling-interest attribution for that entity.

Demand, supply and outlook

Industry-wide shortages of substrates, memory and other critical components constrained product availability, particularly data-center CPUs requiring advanced packaging. Some data-center demand exceeded supply, while high memory prices weighed on price-sensitive client demand; demand for certain client products eased in Q3 versus H1. Intel expects shortages to persist into 2027, potentially limiting shipments in some markets and weakening demand in others. It is adding manufacturing capacity and securing supply through long-term agreements, but says its ability to address memory constraints is very limited. Management expects strong data-center demand into Q4 and beyond, while client-demand trends are expected to worsen in Q4 and persist into 2027.

Liquidity, capital resources and financing

Cash and short-term investments increased approximately 44.3% from year-end 2025, shifting Intel from a position where debt exceeded these balances to one where they exceeded debt.

A major source of liquidity was $22.6B of net proceeds from a Q3 2026 public common-stock offering, intended for general corporate purposes, including capital expenditures and working capital. The offering is equity financing and may dilute shareholders; the share-count effect is not specified here.

Intel expanded its credit facilities and extended maturities during Q3. The three-year facility increased from $3.0B to $4.8B, and the five-year facility from $7.0B to $9.7B. Effective October 1, 2026, total capacity increased by a further $500M to $15.0B: $5.0B under the three-year facility and $10.0B under the five-year facility. Their maturities are in August 2029 and August 2031, respectively. At September 26, Intel had no revolving-facility borrowings and no commercial paper outstanding; its commercial paper program is authorized up to $10.0B.

Debt issuance and acquisition financing

In Q2, Intel issued $6.5B aggregate principal of senior notes, replacing a $6.5B term loan that had funded the Ireland SCIP minority-interest acquisition.

Intel settled $1.0B of notes due May 2026 in Q2 and $1.5B of notes due February 2026 in Q1. No debt was extinguished before maturity in Q3.

In Q2, Intel acquired Apollo’s non-controlling interest in the previously majority-owned Ireland SCIP VIE for $14.2B cash consideration, including transaction costs. Funding combined existing cash and short-term investments with the term loan, which Intel repaid in Q2 using senior-note proceeds.

Cash requirements and expected uses

Funding needs include capital expenditures for manufacturing and assembly/test, process and product-roadmap investment, working capital and supply-capacity commitments, Arizona SCIP partner distributions, debt reduction, acquisitions and strategic investments. Longer-term plans include manufacturing expansion in Arizona, New Mexico and Oregon, a new leading-edge facility in Ohio, and accelerated process-technology development.

Supply constraints are increasing near-term cash demands. Intel made $1.2B of supplier prepayments in YTD 2026 to secure component supply. Two agreements entered into after Q3 to secure future substrate supply are expected to accelerate near-term cash outflows; approximately $3.3B of associated commitments is expected to be paid by the end of 2027. Separately, Q1 customer arrangements included $1.7B of deposits, with cash received in Q2 and the deposits recorded in other accrued and other long-term liabilities.

Subsequent to Q3, Intel agreed to acquire 100% of Classiq Technologies Ltd. for approximately $1.9B, subject to customary purchase-price adjustments, plus up to $350M of contingent consideration tied to performance milestones. Closing is expected in H1 2027, subject to approvals and customary conditions; consideration may be paid in cash or Intel shares.

Intel stated that available funding is sufficient for the next 12 months and longer term, citing operating cash generation, cash and investments, credit facilities, potential securities issuance and monetization of non-core assets. Liquidity and cash flows may also be affected by management actions involving supplier payment terms, customer sales programs and collections, inventory and purchasing, and sales of non-recourse receivables; such actions can shift cash flows between periods. Intel said substantially all debt-instrument investments were investment grade and that it monitors portfolio exposure by issuer, industry and country.

Intel — MD&A cash flows and market risks

Cash flows

Operating cash flow increased about 144%, primarily reflecting higher revenue and lower operating expenses after noncash adjustments. Higher unfavorable working-capital changes partly offset the improvement.

The larger investing outflow reflected higher net purchases of short-term investments, lower proceeds from capital-related government incentives, cash paid to acquire Mentee Robotics, lower other investing inflows, and the absence of 2025 proceeds from the Altera and NAND memory business divestitures. Lower capital expenditures partly offset those uses.

Financing cash inflows included proceeds from a public common-stock offering and term-debt issuance, higher partner contributions, and lower payments for capital expenditures financed with extended payment terms. Offsetting items included distributions to Apollo related to repurchasing its 49% minority interest in Ireland SCIP; term-debt repayments; lower net proceeds from common-stock and warrant issuances and from Escrowed Shares; higher finance-lease payments and RSU tax withholdings; and the absence of prior-year proceeds from subsidiary-share sales.

Risks and market exposure

Intel refers investors to the risk factors in its 2025 Form 10-K and cautions that historical results may not predict future performance. The company remains exposed to changes in foreign-exchange and interest rates, equity prices, and commodity prices; its risk-management programs may not eliminate these exposures.

Controls and Procedures

As of September 26, 2026, Intel’s CEO and CFO concluded that disclosure controls and procedures were effective at providing reasonable assurance. They noted that controls cannot provide absolute assurance against errors, fraud, or undetected control issues. No changes during Q3 2026 materially affected, or were reasonably likely to materially affect, internal control over financial reporting.

Share Repurchases and Trading Plans

Intel made no open-market or negotiated share repurchases during Q3 2026. Under its long-standing authorization, up to $110.0 billion was authorized, with $7.2 billion remaining available as of September 26, 2026. Shares withheld to cover employee taxes upon RSU vesting are treated as repurchases in the financial statements but do not count against the authorization.

Director Alyssa H. Henry adopted a Rule 10b5-1 plan during the quarter to sell up to 15,400 Intel shares, subject to price limits. The plan is scheduled to expire August 13, 2027, unless terminated earlier. No other director or officer trading plans were adopted or terminated during Q3.

Russia

Intel has suspended sales in Russia but may need to interact with Russia’s sanctioned FSB while winding down its Russian offices. Any such dealings are authorized under OFAC General License 1B and generated no direct gross revenue or net profit.