INTC · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

INTEL CORP · 2026-07-24 · Importance 77 · Surprise 82 · Contradicted

Consolidated gross profit increased 84% to $6.5 billion in Q2 2026 and 44% to $11.9 billion in YTD 2026. Gross margin expanded to 40.4% from 27.5% in Q2 and to 39.9% from 32.2% YTD, primarily because of higher product profit and $1.5 billion of lower Q2 period charges. YTD gross profit benefited from $2.2 billion of lower period charges, including the absence of $797 million of prior-year manufacturing-asset impairment and accelerated depreciation charges and $294 million of lower inventory-related charges, partially offset by higher costs from premium-product and Intel 18A wafer mix.

Key facts

• Consolidated gross profit increased by $3.0 billion, or 84%, in Q2 2026 compared to Q2 2025, primarily driven by $1.5 billion of higher product profit and $1.5 billion of lower period charges. source
• Consolidated gross profit was $6,509 million in Q2 2026 (40.4% of net revenue) compared to $3,542 million in Q2 2025 (27.5%). source
• INTEL CORP gross profit for the three months ended Jun 27, 2026: $6,509 million. source
• INTEL CORP cost of sales for the three months ended Jun 27, 2026: $9,619 million. source

Impact estimates