Intel Corporation

Thank you for standing by and welcome to Intel Corporation's second quarter 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 this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 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, Vice President, Best 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 Q2 earnings release and presentation. Both are available on our investor relations website, intc.com. For those joining us online today, this presentation is also available on our webcast window. I am joined today by our CEO, Lip-Bu Tan, and our CFO, David Zinsner. Lip-Bu will open up with comments on second quarter results and update the progress we're making on strategic priorities. Dave will then discuss our overall financial results including third quarter guidance before we transition to answer your questions. Before we begin, please note that today's presentation does contain forward-looking statements based on the environment as we currently see it. As such, they are subject to various risks and uncertainties. It also contains reference 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 the actual results to differ materially from our expectations. They also provide additional information on our non-GAAP financial measures, including reconciliation where appropriate, to our corresponding GAAP financial measures.

With that, let me turn it over to Lip-Bu. Thank you, John, and good afternoon, everyone. Q2 was another quarter of solid execution. Revenue, gross margin, earning per share were above our guidance. This marks the seventh consecutive quarter of exceeding our financial expectations. Our core message is simple. Strong demand for our products continue to outpace our growing supply. Our design manufacturing execution is improving. And operating discipline we put in place 15 months ago is beginning to show tangible results. Today, we are seeing the strongest revenue growth in more than 15 years. Our cultural transformation continues, and our organization is already operating with greater efficiency, moving faster, making better decisions, and staying closer to the customers. Our recent announcement to deepen our collaboration with Google Cloud will help to accelerate the transformation as we fully embrace an AI-first mentality throughout operations. We also continue to strengthen our leadership team with world-class talent. The surging demand and rapid build-out of compute infrastructure across the world creates a meaningful opportunity for us in our product business as well as our foundry business. Industry is facing one of the most severe supply constraints in its history across leading-edge logic, silicon wafers, memory, and subscripts. These shortages will persist for the foreseeable future. Intel is well positioned to benefit from this strong, sustained demand with three strategically important assets. our x86 cpu franchise our advanced packaging technology and our vast wafer foundry network as ai expands from training to inference and increasingly to agentic and multi-agent systems general purpose server cpu density continue to increase and our core server CPU franchise is growing faster than ever. Demand signals from our customers are driving increased confidence and as Dave will discuss in more detail, we are substantially increasing our investments to support this improving demand outlook. Let me talk first about Intel Foundry. My confidence in our foundry process roadmap has grown significantly since joining over a year ago. I am more confident than ever of the strategic significance and unique value proposition of Intel foundry. During Q2, our factories across Intel 7, Intel 3, and Intel 18A exceeded internal volume targets, driven by improving yields, better cycle times and increasing wafer starts. 18A output increased meaningfully in the quarter. Yields continue to track ahead of expectations. We are now ramping Multiple new products on 18A while supporting growing demand for our lead products including Penta Lake and Wild Card Lake. I keep raising the bar on the internal targets and the team continues to meet the challenge. The successful volume ramp of 18A for our internal products provide important validations as our Intel foundry engaged with external customers. We also began rich production of 18AP, providing additional performance and power advantages while maintaining IP and design compatibility with Intel 18A, positioning 18AP as a competitive node for external customers. Looking beyond 18A, I'm encouraged by our progress on Intel 14A. Defect density and transistor performance are all outpacing 18A development. PDK 0.5 is now complete and PDK 0.9 is on track for October. We continue to build out and validate the IEP portfolio for 14A as we position the 14A family for broad-based adoptions across a wide range of customers. I'm pleased to see the increasing momentum on customer engagement for Intel 14A, and I'm increasingly confident that the 14A will be highly competitive process offering across key vectors of performance, power, density, cost, and schedule. With encouraging external customer progress and increased demand for our internal products, we remain on track for 14A risk production for our internal products in second half of 2027 and we make the decision in Q2 to fully committed to high volume RAM in 2028. Lastly, on advanced packaging, customer interest for EMIB-T continue to be very high. Technology is compelling, providing capabilities for advanced AI silicon solutions, which are not possible with today's mainstream offerings. We continue to have a growing EMIB-T backlog. Yield and reliability are hitting targets and we focused on ramping the technology into high volume and high quality to support customer ramps in 2027. Turning to Intel products. We recently renamed our PC business to our Client Computing and Physical AI Group or CCPG. We did this to recognize the growing opportunity for AI at the edge. I'm excited to have a new strengthened leadership driving this effort. In our core PC client segment, Intel 18A is now in volume production across multiple commercial and consumer products. Our factory output continues to increase sequentially every month. The successful high volume RAM of 18A for our internal products provides important validation as Intel foundry engage with external customer. We still have work to do to establish strong footprint in the edge and physical AI ecosystem, but see this opportunity as important future growth driver. Our data center AI group deliver solid quarter. Demand accelerated across cloud and enterprise as customers increasingly recognized the critical role that CPUs in general and x86 CPUs in particular play in the AI infrastructure. Q2 year-over-year server growth was the strongest on record. and Xeon 6 continue to be one of the fastest ramping products in Intel history, reflecting improving execution and strong customer demand. We have also strengthened our outlook with the additional strategic customer wins and long-term agreements in Q2. Our top priority is to ramp capacity and improve factory output as quickly as possible to support customer demand even as we work to improve our competitive roadmap. We also extended our heterogeneous AI strategy to multi-year collaboration with Samba Nova. We are pleased with their growing momentum as we work with them to drive performance and power improvements with disaggregated influence. Lastly, we continue to make steady progress in our newly announced design services business with revenue growing nearly three times year over year. We see tremendous opportunities to leverage our strong x86-based general-purpose computing franchise to build more purpose-built computing products for the AI era. Our unique assets in end-to-end design, our IP portfolio combined with access to our leading-edge wafer and packaging capabilities. positioned us well to win this fast-growing space. We are already making great strides in expanding our purpose-built portfolio from networking to compute and eventually accelerators. Our recently announced collaboration with Fortinet for their security processor is a strong step forward in our ASIC strategy in the quarter. As we look ahead, I'm excited to see new intel take shape. We are operating with greater speed, accountability, and customer focus. While there's still significant work ahead, our priorities are clear. leveraged on our x86 computing franchise to strengthen our product leadership and establish Intel Foundry as a world-class wafer and packaging foundry business. Intel is uniquely positioned to benefit from the overwhelming demand for compute as the entire industry continues a rapid and sustained build out of compute infrastructure. We are the only company that can design, manufacturing, build the entire range of computing solutions from general purpose, traditional CPUs and GPUs to more purpose-built ASICs and CPUs optimized for agentic AI. As we increasingly move from compute dominant by system on chip towards system in package, our advanced packaging and wafer foundry capabilities become increasingly vital assets. Our strategy is clear and pace of execution is accelerating. Opportunities in front of us are substantial. Our strategy is showing earlier results and I'm confident that Intel is well positioned to help define the next era of computing. I want to thank our employees around the world for their focus, discipline, hard work every day, and also thanks our many customers, partners, and suppliers for their continued trust in Intel. With that, let me turn the call over to Dave to work through our financial results in more detail.