Financial Analysis

"Note 19 : Commitments and Contingencies Leases We recognized operating leased assets in other long-term assets of $421 million ($457 million in 2024) and corresponding other accrued liabilities of $110 million ($181 million in 2024), and other long-term liabilities of $281 million ($279 million in 2024) as of December 27, 2025. Our operating leases have remaining terms of 1 to 11 years and may include options to extend the leases for up to 36 years. The weighted average remaining lease term was 6.7 years (6.5 years in 2024), and the weighted average discount rate was 4.7% (4.9% in 2024) as of December 27, 2025 for our operating leases. Operating lease expense was $212 million in 2025 ($248 million in 2024 and $407 million in 2023), including $100 million in variable lease expense in 2025 ($98 million in 2024 and $213 million in 2023). We recognized finance leased assets in property, plant and equipment of $453 million as of December 27, 2025 ($470 million as of December 28, 2024) of which the majority is related to a prepaid finance lease for supplier capacity. This lease will commence upon start of supplier production and has a term of 6 years. We incurred non-cash impairment charges of $48 million in 2025 on certain leased assets as a direct result of the 2025 and 2024 Restructuring Plans ($83 million in 2024 as a result of the 2024 Restructuring Plan; see ""Note 7: Restructuring and Other Charges"" within Notes to Consolidated Financial Statements). These charges were inc …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 13 : Borrowings Short-Term Debt Short-term debt, which primarily includes the current portion of long-term debt, was $2.5 billion as of December 27, 2025 and $3.7 billion as of December 28, 2024. The current portion of long-term debt includes debt classified as short-term based on time remaining until maturity. We have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion under our commercial paper program. We issued and repaid commercial paper of $3.5 billion in 2025 and $7.3 billion in 2024 and repaid $3.9 billion of commercial paper in 2023. As of December 27, 2025 and December 28, 2024, we had no commercial paper outstanding. Long-Term Debt Dec 27, 2025 Dec 28, 2024 ($ In Millions) Effective Interest Rate Amount Amount Fixed-rate senior notes: 3.40%, due March 2025 % $ $ 1,500 3.70%, due July 2025 % 2,250 4.88%, due February 2026 4.93% 1,500 1,500 2.60%, due May 2026 5.03% 1,000 1,000 3.75%, due March 2027 3.78% 1,000 1,000 3.15%, due May 2027 5.60% 1,000 1,000 3.75%, due August 2027 3.81% 1,250 1,250 4.88%, due February 2028 4.92% 1,750 1,750 1.60%, due August 2028 1.67% 1,000 1,000 4.00%, due August 2029 4.05% 850 850 2.45%, due November 2029 2.38% 2,000 2,000 5.13%, due February 2030 5.14% 1,250 1,250 3.90%, due March 2030 3.91% 1,500 1,500 5.00%, due February 2031 5.07% 500 500 2.00%, due August 2031 2.02% 1,250 1,250 4.15%, due August 2032 4.17% 1,250 1,250 4.00%, due December 2032 5.65% 750 750 5.20%, due February 2033 5.23% 2,250 2 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 18 : Employee Equity Incentive Plans Our equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests. Our plans include our 2006 Plan and our 2006 ESPP. Under the 2006 Plan, 1.2 billion shares of common stock have been authorized for issuance as equity awards to employees and non-employee directors through June 2027. As of December 27, 2025, 253 million shares of common stock remained available for future grants. Under the 2006 Plan, we may grant RSUs and stock options. We grant RSUs with a service condition as well as RSUs with a market condition, performance condition and a service condition, which we call PSUs. PSUs are granted to a group of senior officers and employees. For PSUs granted in 2025, the number of shares of our common stock to be received at vesting at the end of the three-year performance period will range from 0% to 200% of the target grant amount. The PSU payout will be determined based on the relative TSR compared to the S&P 500 index over a three-year performance period. The payout will be capped at the target grant amount if our absolute TSR is negative. TSR is a measure of stock price appreciation plus any dividends paid during the performance period. For PSUs granted in 2024 and 2023, the number of shares of our common stock to be received at vesting at the end of the three-year performance period will range from 0% to 200% of the target grant amount …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Note 14 : Fair Value Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis December 27, 2025 December 28, 2024 Fair Value Measured and Recorded at Reporting Date Using Total Fair Value Measured and Recorded at Reporting Date Using Total (In Millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash equivalents: Corporate debt $ $ 150 $ $ 150 $ $ $ $ Financial institution instruments 1 7,292 1,800 9,092 4,121 743 4,864 Reverse repurchase agreements 4,262 4,262 2,654 2,654 Short-term investments: Corporate debt 7,248 7,248 5,365 5,365 Financial institution instruments 1 183 3,991 4,174 195 3,356 3,551 Government debt 2 5,296 6,433 11,729 33 4,864 4,897 Other current assets: Derivative assets 431 608 1,039 348 733 1,081 Marketable equity investments 484 484 848 848 Other long-term assets: Derivative assets 2 2 1 1 Total assets measured and recorded at fair value $ 13,686 $ 24,494 $ $ 38,180 $ 5,545 $ 17,716 $ $ 23,261 Liabilities Other accrued liabilities: Derivative liabilities 3 $ 6 $ 1,524 $ 304 $ 1,834 $ $ 562 $ 134 $ 696 Other long-term liabilities: Derivative liabilities 3 1,714 576 2,290 416 755 1,171 Total liabilities measured and recorded at fair value $ 6 $ 3,238 $ 880 $ 4,124 $ $ 978 $ 889 $ 1,867 1 Level 1 investments consist of money market funds. Level 2 investments consist primarily of time deposits, notes and bonds issued by financial institutions. 2 Level 1 investments consist primarily of U.S. Treasury securities. Level 2 i …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Note 8 : Income Taxes Provision for (Benefit From) Taxes Years Ended ($ In Millions) Dec 27, 2025 Dec 28, 2024 Dec 30, 2023 Income (losses) before taxes: U.S. $ (3,231) $ (13,450) $ (4,749) Non-U.S. 4,788 2,241 5,511 Total income before taxes $ 1,557 $ (11,210) $ 762 Provision for (benefit from) taxes: Current: Federal $ 310 $ 600 $ 538 State (18) (8) 23 Non-U.S. 910 1,364 535 Total current provision for (benefit from) taxes 1,202 1,956 1,096 Deferred: Federal 245 6,192 (2,048) State (11) 67 (21) Non-U.S. 95 (192) 60 Total deferred provision for (benefit from) taxes 329 6,067 (2,009) Total provision for (benefit from) taxes $ 1,531 $ 8,023 $ (913) Effective tax rate 98.3 % 71.6 % (119.8) % We adopted ASU 2023-09 ""Income Taxes (Topic 740): Improvements To Income Tax Disclosures"" on a prospective basis beginning with the year ended December 27, 2025. The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to our actual global effective amount and rate for the year ended December 27, 2025: Dec 27, 2025 Year Ended ($ In Millions) Amount Percent U.S. federal statutory tax $ 327 21.0 % State and local income tax, net of federal income tax effect (23) (1.5) % Foreign tax effects: China: Withholding tax 314 20.2 % Other adjustments (51) (3.3) % Other foreign jurisdictions (205) (13.2) % Effects of cross-border tax laws: Subpart F income inclusion 248 15.9 % Foreign tax credit (707) (45.4) % Other 145 9. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, ""Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses."" This ASU is intended to improve transparency by requiring entities to disclose, in the notes to the financial statements, a disaggregation of certain expense categories that are included within the line items presented on the face of the income statement. The standard is effective for our annual reporting period beginning in 2027 and for interim reporting periods beginning in 2028, with early adoption permitted. The standard may be applied either prospectively or retrospectively, with early adoption permitted. We are currently evaluating the timing and method of adoption and assessing the impact of this ASU on the preparation of our financial statement disclosures. In September 2025, the FASB issued ASU 2025-07, ""Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Non-cash Consideration from a Customer in a Revenue Contract."" This update excludes from derivative accounting non exchange-traded contracts with an underlying based on operations or activities specific to one of the parties to the contract. Additionally, this update clarifies the applicat …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 17 : Retirement Benefit Plans Defined Contribution Plans We provide tax-qualified defined contribution plans for the benefit of eligible employees, former employees and retirees in the U.S. and certain other countries. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis. For the benefit of eligible U.S. employees, we also provide an unfunded non-tax-qualified supplemental deferred compensation plan for certain highly compensated employees, which had a balance of $3.2 billion as of December 27, 2025 ($3.3 billion as of December 28, 2024), recorded within other accrued liabilities on the Consolidated Balance Sheets. We expensed $347 million in 2025, $541 million in 2024 and $272 million in 2023 for matching contributions based on the amount of employee contributions under the U.S. qualified defined contribution and non-qualified deferred compensation plans. The matching contribution in the U.S. qualified defined contribution plan was reduced from March 1 through December 31, 2023, increased from January 1 through December 31, 2024, and decreased beginning January 1, 2025. U.S. Retiree Medical Plan Upon retirement, we provide certain benefits to eligible U.S. employees who were hired prior to 2014 under the U.S. Retiree Medical Plan. The benefits can be used to pay all or a portion of the cost to purchase eligible coverage in a medical plan. As of December 27, 2025 and December 28, 2024, the projected benefit obli …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 7 : Restructuring and Other Charges Years Ended (In Millions) Dec 27, 2025 Dec 28, 2024 Dec 30, 2023 Employee severance and benefit arrangements $ 1,790 $ 2,481 $ 222 Litigation charges and other (121) 858 (329) Asset impairment charges 522 3,631 45 Total restructuring and other charges $ 2,191 $ 6,970 $ (62) In the second quarter of 2025, we announced and commenced the 2025 Restructuring Plan, which was subsequently approved and committed to by our management. This initiative is intended to lower expenses, streamline our organizational structure and reduce management layers across functions while reallocating resources toward our core client and server businesses by reducing lower-priority programs and initiatives. Restructuring charges are primarily comprised of employee severance and benefit arrangements, non-cash asset impairment and accelerated depreciation charges resulting from exit activities, as well as impairment charges relating to real estate exits and consolidations. These charges were excluded from our operating segments' results and included as ""corporate unallocated expenses"" within the restructuring and other charges category presented in ""Note 3: Operating Segments"" within Notes to Consolidated Financial Statements. The cumulative cost of the 2025 Restructuring Plan as of December 27, 2025 was $2.0 billion. Any changes to our estimates or timing will be reflected in our results of operations in future periods. We expect to recognize total charges o …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 3 : Operating Segments In the first quarter of 2025, we made an organizational change to integrate our NEX business into CCG and DCAI and modified our segment reporting to align to this and certain other business reorganizations. All prior period segment data have been retrospectively adjusted to reflect the way our CODM internally receives information and manages and monitors our operating segment performance starting in fiscal year 2025. Additionally, effective September 12, 2025, we completed the divestiture of 51% of Altera. As of that date, Altera's results of operations are no longer included in our consolidated or segment results. Altera's financial results were included within our ""all other"" category for all periods presented through September 11, 2025. There are no changes to our Consolidated Financial Statements for any prior periods resulting from our organizational change in the first quarter of 2025 or the Altera transaction, which is further described below. We organize our business as follows: Intel Products: Client Computing Group (CCG) Data Center and AI (DCAI) Intel Foundry All Other: Mobileye Other CCG, DCAI and Intel Foundry qualify as reportable operating segments. When we enter into federal contracts, they are aligned to the sponsoring operating segment. The accounting policies applied to our segments follow those applied to Intel as a whole. A summary of the basis for which we report our operating segment revenues and operating margin is as fol …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 2 : Accounting Policies Revenue Recognition We recognize net product revenue when we satisfy performance obligations as evidenced by the transfer of control of our products or services to customers. Substantially all of our revenue is derived from product sales. Our products often include a software component, such as firmware, that is highly interdependent and interrelated with the product and is substantially accounted for as a combined performance obligation. In accordance with contract terms, the revenue for combined performance obligations and standalone product sales is recognized at the time of product shipment from our facilities or delivery to the customer location, as determined by the agreed-upon shipping terms. We measure revenue based on the amount of consideration we expect to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. We determine variable consideration, which consists primarily of various sales price concessions, by estimating the most likely amount of net consideration we expect to receive from the customer based on historical analysis of customer purchase volumes. Sales rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other accrued liabilities . We make payments to our customers through cooperative advertising programs for mar …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 14 : Contingencies Legal Proceedings We are regularly party to various ongoing claims, litigation, and other proceedings, including those noted in this section. As of June 27, 2026, we have accrued liabilities of $1.0 billion related to litigation involving VLSI and $308 million, including revaluation effects and accrued interest, related to an EC-imposed fine, both as described below. Excluding the VLSI claims described below, management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends; however, legal proceedings and related government investigations are subject to inherent uncertainties, and unfavorable rulings, excessive verdicts, or other events could occur. Unfavorable resolutions could include substantial monetary damages, fines, or penalties. Certain of these outstanding matters include speculative, substantial, or indeterminate monetary awards. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices, or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, and overall trends. We might also conclude t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 11 : Borrowings In the first quarter of 2026, we settled $1.5 billion of our senior notes due February 2026 and amended our 364-day $5.0 billion credit facility agreement to a three-year $3.0 billion credit facility maturing January 2029. Neither of our revolving credit facilities had borrowings outstanding as of June 27, 2026 or December 27, 2025. In the second quarter of 2026, we settled $1.0 billion of our senior notes due May 2026, and we issued a total of $6.5 billion aggregate principal amount of senior notes comprised of $1.0 billion in 4.65% senior notes due 2031, $1.0 billion in 5.00% senior notes due 2033, $2.2 billion in 5.30% senior notes due 2036, $1.8 billion in 6.13% senior notes due 2056, and $500 million in 6.20% senior notes due 2066. All of our senior fixed-rate notes pay interest semiannually. We may redeem the fixed-rate notes prior to their maturity at our option at specified redemption prices and subject to certain restrictions. The obligations under our senior fixed-rate notes rank equally in the right of payment with all of our other existing and future senior unsecured indebtedness and effectively rank junior to all liabilities of our subsidiaries. On April 1, 2026, in connection with our repurchase of the 49% minority ownership interest in Ireland SCIP (refer to Note 3: Non-Controlling Interests within Notes to Consolidated Condensed Financial Statements), we executed and drew on a $6.5 billion 364-day senior unsecured term loan facility with a …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"Note 12 : Fair Value Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Jun 27, 2026 Dec 27, 2025 Fair Value Measured and Recorded at Reporting Date Using Fair Value Measured and Recorded at Reporting Date Using (In Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents: Corporate debt $ $ 561 $ $ 561 $ $ 150 $ $ 150 Financial institution instruments 3,144 1,605 4,749 7,292 1,800 9,092 Reverse repurchase agreements 6,707 6,707 4,262 4,262 Short-term investments: Corporate debt 8,092 8,092 7,248 7,248 Financial institution instruments 96 5,049 5,145 183 3,991 4,174 Government debt 1,456 2,160 3,616 5,296 6,433 11,729 Other current assets: Derivative assets 135 477 612 431 608 1,039 Marketable equity investments 250 250 484 484 Other long-term assets: Derivative assets 40 40 2 2 Total assets measured and recorded at fair value $ 5,081 $ 24,691 $ $ 29,772 $ 13,686 $ 24,494 $ $ 38,180 Liabilities Other accrued liabilities: Derivative liabilities $ 5 $ 9,156 $ 127 $ 9,288 $ 6 $ 1,524 $ 304 $ 1,834 Other long-term liabilities: Derivative liabilities 6,932 6,932 1,714 576 2,290 Total liabilities measured and recorded at fair value $ 5 $ 16,088 $ 127 $ 16,220 $ 6 $ 3,238 $ 880 $ 4,124 1 Level 1 investments consist of money market funds. Level 2 investments consist primarily of time deposits, notes, and bonds issued by financial institutions. 2 Level 1 investments consist primarily of U.S. Treasury securities. Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 7 : Income Taxes Three Months Ended Six Months Ended ($ In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Income (loss) before taxes $ (10,819) $ (2,769) $ (14,765) $ (3,355) Provision for (benefit from) taxes $ 29 $ 255 $ 364 $ 556 Effective tax rate (0.3) % (9.2) % (2.5) % (16.6) % In the three and six months ended June 27, 2026 and June 28, 2025, our provision for income taxes was determined using our estimated annual effective tax rate applied to our year-to-date ordinary income (loss) before taxes, adjusted for discrete items. In all periods presented, we were not able to benefit from our current year domestic loss before taxes due to the domestic valuation allowance. Our provision for taxes decreased in the three and six months ended June 27, 2026 compared to the three and six months ended June 28, 2025 primarily due to increased share-based compensation deductions. Additionally, our Consolidated Condensed Balance Sheets as of June 27, 2026 and December 27, 2025 contain certain tax receivables of $7.5 billion and $7.6 billion, respectively, within other current assets , and $1.3 billion and $182 million, respectively, within other long-term assets , primarily associated with AMIC claims.

IncomeTaxDisclosureTextBlock

"Note 6 : Restructuring and Other Charges Three Months Ended Six Months Ended (In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Employee severance and benefit arrangements $ 161 $ 1,466 $ 235 $ 1,607 Litigation charges and other 7 8 38 20 Asset impairment charges 2 416 3,967 419 Total restructuring and other charges $ 170 $ 1,890 $ 4,240 $ 2,046 In the second quarter of 2025, we announced and commenced the 2025 Restructuring Plan, which was subsequently approved and committed to by our management. This initiative is intended to lower expenses, streamline our organizational structure and reduce management layers across functions while reallocating resources toward our core client and server businesses by reducing lower-priority programs and initiatives. Restructuring charges are primarily comprised of employee severance and benefit arrangements, non-cash asset impairment and accelerated depreciation charges resulting from exit activities, as well as impairment charges relating to real estate exits and consolidations. These charges were excluded from our operating segments' results and included as ""corporate unallocated expenses"" within the restructuring and other charges category presented in ""Note 2: Operating Segments"" within Notes to Consolidated Condensed Financial Statements. The total expected and cumulative cost of the 2025 Restructuring Plan as of June 27, 2026 was $2.2 billion. Any changes to our estimates or timing will be reflected in our results …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 2 : Operating Segments We organize and manage our business as follows: Intel Products: Client Computing and Physical AI Group (CCPG), formerly the Client Computing Group (CCG) Data Center and AI (DCAI) Intel Foundry All Other M obileye Other CCPG, DCAI and Intel Foundry are our reportable operating segments. In addition to these reportable segments, we present an ""All Other"" category, which is not a reportable segment. When we enter into federal contracts, they are aligned to the sponsoring operating segment. The accounting policies applied to our segments follow those used by Intel as a whole. A summary of the basis on which we report our operating segment revenues and operating income (loss) is as follows: Intel Products: CCPG and DCAI Segment revenue: consists of revenues from external customers. Our Intel Products operating segments represent most of our consolidated revenue and are derived from our principal products that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone SoC, or a multichip package, which are based on Intel architecture. Segment expenses: consist of intersegment charges for product manufacturing and related services from Intel Foundry, external foundry and other manufacturing expenses, product development costs, allocated expenses as described below and direct operating expenses. Intel Foundry Segment revenue : consists substantially of intersegment product and services revenue for wafer fabric …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing