Intel Corporation

Thank you for standing by and welcome to the Intel Corporation earnings first quarter earnings, 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. John Pitzer, Corporate Vice President of Investor Relations. Please go ahead, sir.

Thank you, Jonathan, and good afternoon to everyone joining us today. By now, you should have received a copy of the Q1 earnings release and earnings presentation, both of which are available on our Investor Relations website, intc.com. For those joining us online today, the earnings presentation is also available in our webcast window. I am joined today by our CEO, Lipu Tan, and by our CFO, David Zinsner. Lipu will open with comments on first quarter results, as well as provide an update on the progress we're making on our strategic priorities. Dave will then discuss our overall financial results, including second quarter guidance, before we transition to answer your questions. Before we begin, please note that today's discussion does contain forward-looking statements based on the environment as we currently see it. and as such, are subject to various risks and uncertainties. It also contains references to non-GAAP financial measures that we believe provide useful information to our investors. Our earnings release, most recent annual report on Form 10-K, and other filings with the SEC provide more information on specific risk factors that could cause actual results to differ materially from our expectations. They also provide additional information on our non-GAAP financial measures, including reconciliations where appropriate to our corresponding GAAP financial measures.

With that, let me turn things over to Litbu. Thank you, John, and good afternoon, everyone. Q1 results demonstrate continued and steady progress across the business, reflecting strong demand for our products. and disciplined execution to expand available supply. Revenue, gross margin, and earning per share were all above the high end of guidance, marking our sixth consecutive quarter of exceeding financial expectations. Even as we improved factory output, demand continued to run ahead of supply for all our businesses, especially for Xeon server CPUs, where we expect sustained momentum this year and next. Intel 3-base Xeon 6 and Intel 18A-base Core Series 3 products are now in full volume production RAM, and each represents the fastest new product RAM in five years. We are maximizing and optimizing our factory output to meet customer needs. It is our top priority. Intel is now a very different company than when I first joined over a year ago. We have taken and continue to take liberate steps to rebuild Intel into a more competitive and more profitable company. Our cultural transformation is well underway, and we are embracing our roots as data-driven, paranoid, and engineering-centric company. We are also listening closely to our customers and putting them at the center of everything we do. Intel processes some of the most vital assets necessary to be successful and to flourish in this era of extraordinary opportunity for the semiconductor industry. With a stronger balance sheet, a new leadership team, a rejuvenated and motivated workforce, and a renewed focus on engineering execution, we are turning our attention squarely towards innovation to capture opportunities in the near term and to position the company for robust growth in the long term. Driven by tremendous demand for AI, the semiconductor industry TAM is now approaching $1 trillion. Intel is well positioned to benefit from this demand with three strategically important assets. Our x86 CPU franchise, our advanced packaging technology, and our vast manufacturing network. Artificial intelligence is now moving into the real world towards a more distributed inference and reinforced learning workloads. like Argentic Physical AI and Robots and Edge AI. This shift is now beginning to show up in our results, as I want to spend some time on this today. For the last few years, the story around high performance computing was almost exclusively about GPU and other accelerators. In recent months, we have seen clear sign that the CPU is reinserting itself as the indispensable foundation of the AI era. CPU now serve as the orchestration layer and critical control plane for the entire AI stack. This is not just our wishful thinking, it is what we hear from our customers. and this is evident in the demand profile for our products. Xeon server demand is seeing strong and sustained momentum. Customers are deploying server CPUs along accelerators in the ratio that is moving back towards CPU. The accelerator remains central to Frontier AI. and we will continue to participate, innovate, and partner in that category. Our recent announcement with Sampanoag Systems is an example of such partnership on HectorGenius compute architectures. But the backbone of AI computing in production remains a CPU-anchored architecture. That is good news for the x86 ecosystem. It is great news for Intel. And it is a structural reason I'm confident that CPU franchise will continue to be a meaningful growth engine for the company in the years ahead, not just a quarter ahead. Turning to Intel Foundry, The accelerating deployment of AI infrastructure creates a meaningful opportunity for us as we continue to build our external foundry business. I'm pleased with the progress we have made in foundry technology development over the last year, even though I will continue to remind you this will be a long journey for us. We have made steady progress with Intel 4 and Intel 3. And 18 AUs are now running ahead of the internal projections, representing a meaningful inflection in our execution and our factory finished good output. We also continue to make steady progress on our advanced packaging technologies. including additional growth in customer backlog in the quarter. On Intel 18AP and Intel 14A, we continue to be encouraged by our external engagements. Intel 14A maturity, yield, and performance are outpacing Intel 18A at a similar point in time. and we continue to develop PDKs with multiple customers actively evaluating the technology. Their partnership has been critical and their feedback is continued to help us define the technology so that we can cater to their needs. We expect to see earlier design commitments emerge beginning in the second half of 2026. and expanding into the first half of 2027. I'm particularly pleased that our progress today has driven us to lend more of our own future product types on Intel 14A as well. At a time when advanced wafer capacity is in the short supply, this enables us to have better control over our supply chain. Intel has pioneered nearly every major innovation that has enabled dimensional scaling and high volume manufacturing of silicon transistors over the last six decades. We have always been willing to take measured risks that have eventually passed away for step function improvements in transistor density cost, power, and performance. As we look to continue challenging the stated quote, I can think of no better partners than Elon Musk. We recently announced our partnership with SpaceX, XAI, and Tesla to support TeraFab. Elon and I share a strong conviction that global semiconductor supply is not keeping pace with the rapid acceleration in demand. We are excited to explore innovative ways to refactor silicon process technology, looking for unconventional ways to improve manufacturing efficiency. that will eventually lead to a dynamic improvement in the economics of semiconductor manufacturing. A year ago, the conversation about Intel was about whether we could survive. Today, it's about how quickly we can add manufacturing capacity and scale our supply to meet enormous demand for our products. This is a fundamentally different company today, and we still have a lot of work ahead. I would like to take this opportunity to thank our many customers, partners, and our hardworking employees across the world for their contributions towards building a new Intel. I remain firmly convinced of and focus on the opportunity ahead for Intel. With that, I will pass it to Dave.