Overview This report should be read in conjunction with our 2025 Form 10-K where we include additional information on our business, operating segments, risk factors, critical accounting estimates, policies, methods and assumptions used in our estimates, among other important information. Significant Events and Trends Impacting Results The following discussion highlights significant events, key developments and trends that we believe meaningfully impacted our consolidated financial results and financial position during Q2 2026 or that we believe may continue to influence our future operating results and financial position, as well as specific matters that occurred in 2025 that impact the comparability of our results. Escrowed Shares Issued to the U.S. Government In Q2 2026, in connection with our agreements with the U.S. government and shares of our common stock held in escrow for the benefit of the U.S. government under such agreements, we recognized a $12.5 billion loss related to the net change in the fair value of shares of our common stock released from escrow during the quarter and remaining in escrow at the end of Q2 2026, driven by an increase in our stock price. The fair value of the related derivative liability was $15.6 billion at the end of Q2 2026, which we recognized within other accrued liabilities and other long-term liabilities (refer to "Note 4: Earnings (Loss) Per Share and Stockholders' Equity" within Notes to Consolidated Condensed Financial Statements for further information). Repurchase of Non-Controlling Interests in Ireland SCIP In Q2 2026, we acquired from Apollo its 49% minority ownership interest in our majority-owned and consolidated Ireland SCIP VIE for aggregate cash consideration of $14.2 billion, inclusive of transaction costs. We funded the repurchase of Apollo's non-controlling equity interest through a combination of existing cash and cash equivalents, short-term investments and a $6.5 billion term loan facility that we entered into in Q2 2026 and subsequently repaid in Q2 2026 using proceeds from the issuance of $6.5 billion aggregate principal amount of senior fixed-rate notes (refer to "Note 3: Non-Controlling Interests" and “Note 11: Borrowings” within Notes to Consolidated Condensed Financial Statements). Ireland SCIP was established in 2024 in connection with the construction and operation of Fab 34, with Apollo acquiring a 49% minority ownership interest and the parties entering into related operating and ancillary agreements governing the construction, operation and utilization of the fab. Our Consolidated Condensed Financial Statements for Q2 2026 reflect our 100% ownership of Ireland SCIP, the substantial termination of the related operating and ancillary agreements between the parties, the elimination of $142 million of non‑controlling interest in Ireland SCIP and the extinguishment of the $532 million derivative liability associated with delay‑related liquidated damages provisions. The residual consideration of $13.5 billion was recognized as a reduction to our capital in excess of par value (refer to “Note 3: Non-Controlling Interests” within Notes to Consolidated Condensed Financial Statements). Future Node Development and Manufacturing Expansion Projects At the start of 2026, we released our first products manufactured on Intel 18A, our most advanced leading-edge semiconductor manufacturing technology, or node, in high volume production. We continue to develop its derivative node, Intel 18A-P, designed for future Intel products and external Intel Foundry customers, and entered into risk production of products on such node in June 2026. We are focused and have made substantial progress in recent periods on the continued development of Intel 14A, the next generation node beyond Intel 18A and Intel 18A-P. During Q2 2026, we committed to completing development of Intel 14A, with a number of future Intel products designed to utilize the node and manufacturing expansion projects underway for production of products on the node. We also made continued progress towards meeting performance and design milestones for potential significant customers to evaluate Intel 14A for their future products. We intend to accelerate various of our manufacturing expansion projects, though the scale and pace of our manufacturing expansion projects will ultimately be dictated by the amount of committed demand for Intel 14A that we are able to obtain from our Intel products roadmap and design wins with potential significant external customers. The design, development and manufacturing of leading-edge nodes is risky and capital-intensive, and it takes years for capital investments to yield a return. We remain committed to maintaining a disciplined approach of investing capital in future node development and new or upgraded manufacturing facilities only where we have a clear line of sight to an acceptable return on that capital. MD&A 28 Table of Contents Risks from the Conflict with Iran On February 28, 2026, the U.S. and Israel initiated coordinated military strikes against Iran, which were followed by retaliatory actions by Iran and Iran‑aligned groups, including missile and drone attacks directed at Israel and other countries in the region. Since that time, the conflict has remained volatile, with periods of military escalation, retaliatory actions and diplomatic efforts to reduce hostilities. Military actions by the U.S., Israel, Iran and Iran-aligned groups have impacted military, civilian and industrial targets throughout the region, including in Israel, Iran, Lebanon, Kuwait, Saudi Arabia, Yemen, Bahrain, Qatar, the United Arab Emirates, Oman, Iraq, Jordan, Syria, Cyprus and Azerbaijan. Among other things, the conflict has disrupted various global supply chains and shipping routes and resulted in increased global energy prices and energy shortages that may adversely impact the world economy. In addition, Iranian strikes on two energy fields in Qatar that supply a meaningful percentage of the global supply of helium have resulted in a global shortage of this gas that is essential to the semiconductor manufacturing process. In late March 2026, Iran published a list of U.S. companies with operations in the Middle East whose facilities they indicated they would target in retaliation for continued strikes on Iran, with Intel being near the top of that list. A significant portion of our current and anticipated future revenues are generated from products on Intel 7 manufactured at our fabrication facility in Israel. As we are not insured for business interruptions resulting from war or political violence, a disruption of that facility could have a significant adverse impact on our business. We could also be adversely impacted by disruptions to our product development centers in Israel. As our property, plant and equipment assets in Israel are self‑insured for losses resulting from war or political violence, any significant impact from the conflict, especially to our fabrication facility, could have a material adverse effect on our consolidated financial results and position. We continue to monitor the potential impact this conflict could have on our operations in Israel, on our global operations and business and on the semiconductor industry and global economy more broadly. Altera Divestiture The comparability of our Consolidated Condensed Financial Statements for Q2 2026 and YTD 2026 relative to Q2 2025 and YTD 2025, as discussed within this MD&A, was impacted by the deconsolidation of Altera. Altera, a business offering programmable semiconductors, primarily FPGAs, and related products for a broad range of applications that was previously a wholly owned subsidiary, was deconsolidated from our Consolidated Condensed Financial Statements effective September 12, 2025, following the closing of the sale of 51% of Altera's issued and outstanding common stock. Altera's financial results of operations were included in our Consolidated Condensed Financial Statements through September 11, 2025. Revenue from Altera as a customer was $181 million in Q2 2026 and $320 million in YTD 2026, compared to $428 million and $779 million of revenue, respectively, contributed by Altera in our consolidated financial results in Q2 2025 and YTD 2025. Refer to "Note 8: Investments" and "Note 9: Acquisitions and Divestitures" within Notes to Consolidated Condensed Financial Statements for additional information. MD&A 29 Table of Contents Operating Segments Trends and Results Intel Products Intel Products consists substantially of the design, development, marketing, sale, support and servicing of CPUs and related semiconductor products for third-party customers. Intel Products is comprised of two operating segments: our Client Computing and Physical AI Group, or CCPG, and our Data Center and Artificial Intelligence, or DCAI. CCPG (formerly our Client Computing Group, or CCG) delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experiences for consumer and commercial markets, with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon our x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and purpose-built silicon, or ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The manufacturing of our Intel Products offerings is performed by Intel Foundry and, to a lesser extent, by certain third-party manufacturers. Intel Products Financial Performance1 Three Months Ended Six Months Ended Jun 27, 2026 Jun 27, 2026 ($ In Millions) CCPG DCAI Total CCPG DCAI Total Revenue $ 8,877 $ 6,262 $ 15,139 $ 16,604 $ 11,314 $ 27,918 Cost of sales and operating expenses 6,534 3,788 10,322 11,745 7,298 19,043 Operating income $ 2,343 $ 2,474 $ 4,817 $ 4,859 $ 4,016 $ 8,875 Operating margin % 26% 40% 32% 29% 35% 32% Three Months Ended Six Months Ended Jun 28, 2025 Jun 28, 2025 ($ In Millions) CCPG DCAI Total CCPG DCAI Total Revenue $ 7,871 $ 3,939 $ 11,810 $ 15,500 $ 8,065 $ 23,565 Cost of sales and operating expenses 5,818 3,306 9,124 11,086 6,857 17,943 Operating income $ 2,053 $ 633 $ 2,686 $ 4,414 $ 1,208 $ 5,622 Operating margin % 26% 16% 23% 28% 15% 24% 1 Operating segment results include intersegment financial activity; refer to "Note 2: Operating Segments" within Notes to Consolidated Condensed Financial Statements for a reconciliation between our operating segment and consolidated financial results for the periods presented. Operating Segment Revenue Summary Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 Total Intel Products revenue was $15.1 billion in Q2 2026, up $3.3 billion from Q2 2025, and $27.9 billion in YTD 2026, up $4.4 billion from YTD 2025. ▪CCPG revenue increased $1.0 billion from Q2 2025 and $1.1 billion from YTD 2025. Client revenue (collectively notebook and desktop) was $7.7 billion in Q2 2026, up $1.1 billion from Q2 2025, and $14.3 billion in YTD 2026, up $1.2 billion from YTD 2025, primarily driven by ASP increases of 27% and 22%, respectively. The majority of the increase in ASPs was driven by a higher mix of premium products sold in Q2 2026 and YTD 2026, with demand-based pricing actions contributing to a lesser extent, in part to offset higher input costs. This increase in client revenue was partially offset by volume decreases of 8% compared to Q2 2025 and 10% compared to YTD 2025. Market demand exceeded our available product supply in Q2 2026 and YTD 2026 due to industry-wide supply constraints. While supply constraints impacted our results during the first half of 2026, we expect these constraints to ease over the second half of 2026. Other CCPG revenue was $1.1 billion in Q2 2026, down $127 million from Q2 2025, and $2.3 billion in YTD 2026, down $82 million from YTD 2025. ▪DCAI revenue increased $2.3 billion from Q2 2025 and $3.2 billion from YTD 2025, primarily driven by higher server revenue, which increased $2.0 billion in Q2 2026 and $2.7 billion in YTD 2026 due to ASP increases of 48% and 38%, respectively. The majority of the increase in server ASPs was driven by a higher mix of premium products sold in Q2 2026 and YTD 2026, with demand-based pricing actions contributing to a lesser extent, in part to offset higher input costs. Server volume increased 9% compared to Q2 2025 and 2% compared to YTD 2025, primarily driven by higher hyperscaler demand. Market demand exceeded our available product supply in Q2 2026 and YTD 2026 due to internal supply constraints. Though we continue to add capacity in our factories to increase supply and mitigate these constraints, we expect industry-wide supply constraints to persist into next year. Other DCAI revenue was $951 million in Q2 2026, up $304 million from Q2 2025, and $1.9 billion in YTD 2026, up $533 million from YTD 2025, primarily driven by higher demand for purpose-built silicon, or ASICs. MD&A 30 Table of Contents Segment Operating Income Summary Q2 2026 vs. Q2 2025 Total Intel Products operating income was $4.8 billion in Q2 2026, up $2.1 billion from Q2 2025. ▪CCPG operating income increased $290 million from Q2 2025, primarily driven by $701 million of higher product profit in Q2 2026 primarily related to higher client revenue, partially offset by higher client unit costs resulting from an increased mix of premium products sold in Q2 2026. Operating income also benefited from $258 million of lower operating expenses, primarily related to lower payroll-related expenditures resulting from headcount reductions taken under the 2025 Restructuring Plan and the effects of various cost-reduction measures. These benefits were partially offset by $669 million of higher period charges, primarily due to an inventory-related charge recognized in Q2 2026 to align product mix with customer demand. ▪DCAI operating income increased $1.8 billion from Q2 2025, primarily driven by $1.7 billion of higher product profit in Q2 2026, primarily related to higher server revenue, partially offset by higher server unit costs resulting from an increased mix of premium products sold in Q2 2026. YTD 2026 vs. YTD 2025 Total Intel Products operating income was $8.9 billion in YTD 2026, up $3.3 billion from YTD 2025. ▪CCPG operating income increased $445 million from YTD 2025, primarily driven by $673 million of higher product profit in YTD 2026, primarily related to higher client revenue, partially offset by higher client unit costs resulting from an increased mix of premium products sold in YTD 2026. Operating income also benefited from $507 million of lower operating expenses, primarily related to lower payroll-related expenditures resulting from headcount reductions taken under the 2025 Restructuring Plan and the effects of various cost-reduction measures. These benefits were partially offset by $735 million of higher period charges, primarily due to an inventory-related charge recognized in Q2 2026 to align product mix with customer demand. ▪DCAI operating income increased $2.8 billion from YTD 2025, primarily driven by $2.3 billion of higher product profit in YTD 2026, primarily related to higher server revenue, partially offset by higher server unit costs resulting from an increased mix of premium products sold in YTD 2026. Operating income also benefited from $512 million of lower period charges in YTD 2026, primarily related to the absence of Gaudi AI accelerator inventory-related charges incurred in YTD 2025. Intel Foundry Intel Foundry, comprised of technology development, manufacturing and foundry services, develops new leading-edge semiconductor process technologies and advanced packaging technologies and provides manufacturing, assembly and test and advanced packaging capacity and design enablement solutions across multiple nodes and platforms. We continue to innovate and advance leading-edge semiconductor process technology and manufacturing in the U.S., where we are the only company conducting both leading-edge logic R&D and high-volume manufacturing. At present, substantially all of our Intel Foundry business supports internal manufacturing for Intel Products; however, we are offering our Intel Foundry services to external customers and aim to develop a more significant external foundry business in the future. Intel Foundry Financial Performance1 Three Months Ended Six Months Ended ($ In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Revenue $ 5,765 $ 4,417 $ 11,186 $ 9,084 Cost of sales and operating expenses 7,854 7,585 15,712 14,572 Operating loss $ (2,089) $ (3,168) $ (4,526) $ (5,488) Operating loss % (36)% (72)% (40)% (60)% 1 Operating segment results include intersegment financial activity; refer to "Note 2: Operating Segments" within Notes to Consolidated Condensed Financial Statements for a reconciliation between our operating segment and consolidated financial results for the periods presented. Operating Segment Revenue Summary Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 Revenue was $5.8 billion in Q2 2026, up $1.3 billion from Q2 2025, and $11.2 billion in YTD 2026, up $2.1 billion from YTD 2025. Intersegment revenue was $5.5 billion in Q2 2026, up $1.1 billion from Q2 2025, and $10.7 billion in YTD 2026, up $1.7 billion from YTD 2025, primarily driven by higher wafer volumes from Intel 18A, Intel 3, and Intel 4 process nodes, which carry higher ASPs relative to predecessor process nodes. External revenue was $293 million in Q2 2026, up $271 million from Q2 2025, and $467 million in YTD 2026, up $414 million from YTD 2025, primarily due to Altera's transition to an external customer following the deconsolidation of Altera in Q3 2025. MD&A 31 Table of Contents Segment Operating Loss Summary Q2 2026 vs. Q2 2025 Operating loss was $2.1 billion in Q2 2026, compared to an operating loss of $3.2 billion in Q2 2025, primarily driven by $1.4 billion of lower period charges, including the absence of $797 million of non-cash asset impairment and accelerated depreciation charges recognized in Q2 2025 related to certain manufacturing assets that were determined to have no remaining operational use. This benefit was partially offset by $340 million of lower product profit in Q2 2026, driven by an increased mix of higher-cost wafers manufactured on our Intel 18A process node, which substantially offset higher revenue and lower wafer costs on Intel 3 and Intel 4 process nodes. YTD 2026 vs. YTD 2025 Operating loss was $4.5 billion in YTD 2026, compared to an operating loss of $5.5 billion in YTD 2025, primarily driven by $1.8 billion of lower period charges, including the absence of $797 million of non-cash asset impairment and accelerated depreciation charges recognized in Q2 2025 related to certain manufacturing assets that were determined to have no remaining operational use, as well as $391 million of lower inventory charges primarily driven by the intersegment sell-through of inventory with lower of cost or net realizable value intersegment reserves resulting from the early ramp of our Intel 18A process node. These benefits were partially offset by $830 million of lower product profit in YTD 2026, driven by an increased mix of higher-cost wafers manufactured on our Intel 18A process node, which substantially offset higher revenue and lower wafer costs on Intel 3 and Intel 4 process nodes. All Other Our "All Other" category includes the results of operations from non-reportable segments, including our Mobileye business, our IMS business, start-up businesses that support our initiatives and historical results of operations from divested businesses, including Altera. Mobileye, a publicly traded company, is a global leader in driving assistance and self-driving solutions, with a product portfolio designed to encompass the entire stack required for assisted and autonomous driving, including compute platforms, computer vision and machine learning-based perception, mapping and localization, driving policy and active sensors in development. IMS specializes in developing and manufacturing multi-beam mask writing tools. Altera, a business offering programmable semiconductors, primarily FPGAs, and related products for a broad range of applications that was previously a wholly owned subsidiary, was deconsolidated from our Consolidated Condensed Financial Statements effective September 12, 2025, following the closing of the sale of 51% of Altera's issued and outstanding common stock. Altera's financial results of operations were included in our "All Other" category through September 11, 2025. All Other Financial Performance1 Three Months Ended Six Months Ended ($ In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Revenue $ 701 $ 1,053 $ 1,329 $ 1,996 Cost of sales and operating expenses 471 984 997 1,824 Operating income $ 230 $ 69 $ 332 $ 172 Operating margin % 33% 7% 25% 9% 1 Operating segment results include intersegment financial activity; refer to "Note 2: Operating Segments" within Notes to Consolidated Condensed Financial Statements for a reconciliation between our operating segment and consolidated financial results for the periods presented. Operating Segment Revenue Summary Q2 2026 vs. Q2 2025 All Other revenue was $701 million, down $352 million from Q2 2025, primarily driven by lower revenue resulting from the deconsolidation of Altera in Q3 2025. Mobileye revenue was $507 million in Q2 2026, flat with Q2 2025. YTD 2026 vs. YTD 2025 All Other revenue was $1.3 billion, down $667 million from YTD 2025, primarily driven by lower revenue resulting from the deconsolidation of Altera in Q3 2025. This decrease was partially offset by higher Mobileye revenue in YTD 2026, which totaled $1.1 billion, up $120 million from YTD 2025, primarily driven by higher demand for Mobileye EyeQ* products. Segment Operating Income Summary Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 All Other operating income was $230 million in Q2 2026, up $161 million from Q2 2025, and $332 million in YTD 2026, up $160 million from YTD 2025, primarily driven by higher operating income from our other businesses in Q2 2026 and YTD 2026, partially offset by the absence of Altera operating margin in Q2 2026 and YTD 2026. MD&A 32 Table of Contents Consolidated Condensed Results of Operations Three Months Ended Six Months Ended Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 (In Millions, Except Per Share Amounts) Amount % of Net Revenue1 Amount % of Net Revenue1 Amount % of Net Revenue1 Amount % of Net Revenue1 Net revenue $ 16,128 100.0 % $ 12,859 100.0 % $ 29,705 100.0 % $ 25,526 100.0 % Cost of sales 9,619 59.6 % 9,317 72.5 % 17,849 60.1 % 17,312 67.8 % Gross profit 6,509 40.4 % 3,542 27.5 % 11,856 39.9 % 8,214 32.2 % Research and development 3,368 20.9 % 3,684 28.6 % 6,743 22.7 % 7,324 28.7 % Marketing, general, and administrative 1,175 7.3 % 1,144 8.9 % 2,213 7.4 % 2,321 9.1 % Restructuring and other charges 170 1.1 % 1,890 14.7 % 4,240 14.3 % 2,046 8.0 % Operating income (loss) 1,796 11.1 % (3,176) (24.7) % (1,340) (4.5) % (3,477) (13.6) % Gains (losses) on equity investments, net (39) (0.2) % 502 3.9 % (111) (0.4) % 390 1.5 % Interest and other, net (12,576) (78.0) % (95) (0.7) % (13,314) (44.8) % (268) (1.0) % Income (loss) before taxes (10,819) (67.1) % (2,769) (21.5) % (14,765) (49.7) % (3,355) (13.1) % Provision for (benefit from) taxes 29 0.2 % 255 2.0 % 364 1.2 % 556 2.2 % Net income (loss) (10,848) (67.3) % (3,024) (23.5) % (15,129) (50.9) % (3,911) (15.3) % Less: net income (loss) attributable to non-controlling interests 185 1.1 % (106) (0.8) % (368) (1.2) % (172) (0.7) % Net income (loss) attributable to Intel $ (11,033) (68.4) % $ (2,918) (22.7) % $ (14,761) (49.7) % $ (3,739) (14.6) % Earnings (loss) per share attributable to Intel—diluted $ (2.16) $ (0.67) $ (2.89) $ (0.86) 1 Totals may not sum due to rounding. MD&A 33 Table of Contents Consolidated Revenue Consolidated Revenue Walk $B1 1 Excludes intersegment revenue; totals may not sum due to rounding. Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 Our revenue was $16.1 billion in Q2 2026, up $3.3 billion from Q2 2025, and $29.7 billion in YTD 2026, up $4.2 billion from YTD 2025, primarily driven by higher Intel Products revenue. Intel Products revenue increased 28% from Q2 2025 and 18% from YTD 2025, driven by higher DCAI and CCPG revenue. DCAI revenue increased 59% from Q2 2025 and 40% from YTD 2025, and CCPG revenue increased 13% from Q2 2025 and 7% from YTD 2025. These increases were primarily driven by ASP increases, the majority of which resulted from a higher mix of premium products sold, with demand-based pricing actions contributing to a lesser extent, in part to offset higher input costs in Q2 2026 and YTD 2026. Intel Foundry revenue increased, and All Other revenue decreased, compared to Q2 2025 and YTD 2025, primarily due to Altera's transition to an external customer following the deconsolidation of Altera in Q3 2025. In Q2 2026 and YTD 2026, market demand exceeded our available product supply due to capacity constraints at our factories and industry-wide supply constraints. We expect these industry-wide shortages of substrates, memory and other critical components to persist into next year, which may limit our ability to fully meet customer demand. We continue to take actions to increase supply and mitigate these constraints, including adding capacity in our factories and securing component supply through long-term agreements with suppliers. MD&A 34 Table of Contents Consolidated Gross Profit We derived a substantial majority of our consolidated gross profit in Q2 2026 and in YTD 2026 from our Intel Products business sales through our CCPG and DCAI operating segments. Gross Profit $B1 (Percentages in chart indicate gross profit as a percentage of total revenue) 1 Amounts presented may not recalculate due to rounding. Q2 2026 vs. Q2 2025 Our consolidated gross profit in Q2 2026 increased by $3.0 billion, or 84%, compared to Q2 2025, primarily driven by $1.5 billion of higher product profit in Q2 2026, primarily related to higher revenue, partially offset by higher unit costs resulting from an increased mix of premium products sold in Q2 2026. Gross profit also benefited from $1.5 billion of lower period charges. The lower period charges resulted from, among other things, the absence in Q2 2026 of $797 million of non-cash asset impairment and accelerated depreciation charges recognized in Q2 2025 related to certain manufacturing assets that were determined to have no remaining operational use, partially offset by an inventory-related charge recognized in Q2 2026 to align product mix with customer demand. YTD 2026 vs. YTD 2025 Our consolidated gross profit in YTD 2026 increased by $3.6 billion, or 44%, compared to YTD 2025, primarily driven by $2.2 billion of lower period charges. The lower period charges resulted from, among other things, the absence in Q2 2026 of $797 million of non-cash asset impairment and accelerated depreciation charges recognized in Q2 2025 related to certain manufacturing assets that were determined to have no remaining operational use. Lower period charges also resulted from $294 million of lower inventory-related charges taken in YTD 2026 as compared to YTD 2025, primarily due to the absence of Gaudi AI accelerator inventory-related charges incurred in YTD 2025 and $226 million of lower reserves resulting from the sell-through of inventory with lower of cost or net realizable value reserves recognized during the early ramp of our Intel 18A process node, partially offset by an inventory-related charge recognized in YTD 2026 to align product mix with customer demand. Gross profit also benefited from $1.4 billion of higher product profit in YTD 2026, primarily related to higher revenue, partially offset by higher unit costs resulting from an increased mix of premium products sold in YTD 2026. MD&A 35 Table of Contents Consolidated R&D and MG&A Expenses Total R&D and MG&A expenses for Q2 2026 were $4.5 billion, down 6% from Q2 2025, and $9.0 billion for YTD 2026, down 7% from YTD 2025. These expenses represent 28.2% of revenue for Q2 2026 and 37.5% of revenue for Q2 2025, and 30.1% of revenue for YTD 2026 and 37.8% of revenue for YTD 2025. In support of our strategy, as described in our 2025 Form 10-K, we continue to make investments to advance our product and process technology roadmaps. As a result of our 2025 and 2024 Restructuring Plans and related cost-reduction measures and the deconsolidation of Altera in Q3 2025, we expect total R&D and MG&A expenses to decrease in 2026 relative to recent historical periods. Research and Development $B Marketing, General, and Administrative $B (Percentages in chart indicate operating expenses as a percentage of total revenue) Research and Development Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 Q2 2026 R&D expenses decreased by $316 million, or 9%, from Q2 2025, and YTD 2026 R&D expenses decreased by $581 million, or 8%, from YTD 2025, primarily driven by lower payroll-related expenditures resulting from headcount reductions taken under the 2025 Restructuring Plan and other cost-reduction measures, as well as lower expenses in Q2 2026 and YTD 2026 due to the Q3 2025 deconsolidation of Altera. These decreases were partially offset by higher incentive-based cash compensation in Q2 2026 and YTD 2026. Marketing, General, and Administrative Q2 2026 vs. Q2 2025 Q2 2026 MG&A expenses increased by $31 million, or 3%, from Q2 2025, primarily driven by higher share-based compensation, partially offset by lower payroll-related expenditures resulting from headcount reductions taken under the 2025 Restructuring Plan and other cost-reduction measures, as well as lower expenses in Q2 2026 due to the Q3 2025 deconsolidation of Altera. YTD 2026 vs. YTD 2025 YTD 2026 MG&A expenses decreased by $108 million, or 5%, from YTD 2025, primarily driven by lower payroll-related expenditures resulting from headcount reductions taken under the 2025 Restructuring Plan and other cost-reduction measures, as well as lower expenses in YTD 2026 due to the Q3 2025 deconsolidation of Altera. These decreases were partially offset by higher share-based compensation in YTD 2026. MD&A 36 Table of Contents 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 Q2 2025, we announced and commenced the 2025 Restructuring Plan, which was designed to streamline our organizational structure, enable us to focus on our core businesses and lower our overall operating expenses. Refer to "Note 6: Restructuring and Other Charges" within Notes to Consolidated Condensed Financial Statements for further information. The substantial majority of the actions contemplated by the 2025 Restructuring Plan were completed in 2025, with the remainder expected to be completed in 2026. Any changes to our estimates or timing will be reflected in our results of operations in future periods. The 2024 Restructuring Plan, which we initiated in Q3 2024, was substantially complete by the end of 2025, with the remainder expected to be completed in 2026. Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 Employee severance and benefit arrangements included charges of $161 million in Q2 2026 and $235 million in YTD 2026, primarily relating to the 2025 Restructuring Plan, compared to $1.5 billion in Q2 2025 and $1.6 billion in YTD 2025. Charges in Q2 2025 and YTD 2025 primarily related to the 2025 Restructuring Plan, with the remaining charges relating to the 2024 Restructuring Plan. Asset impairment charges in YTD 2026 included non-cash goodwill impairment charges of $3.9 billion (refer to "Note 10: Goodwill" within Notes to Consolidated Condensed Financial Statements). In YTD 2025, asset impairment charges included non-cash charges associated with the 2025 Restructuring Plan resulting from the exit of certain non-core lines of business and the consolidation and exit of certain real estate properties. Gains (Losses) on Equity Investments, Net and Interest and Other, Net Three Months Ended Six Months Ended (In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Unrealized gains (losses) on marketable equity investments, net $ (60) $ (58) $ (216) $ (350) Unrealized gains (losses) on non-marketable equity investments, net1 10 473 112 473 Impairment charges on non-marketable equity investments (92) (51) (154) (156) Unrealized gains (losses) on equity investments, net (142) 364 (258) (33) Realized gains (losses) on sales of equity investments, net 103 138 147 423 Gains (losses) on equity investments, net $ (39) $ 502 $ (111) $ 390 Interest and other, net $ (12,576) $ (95) $ (13,314) $ (268) 1 Unrealized gains (losses) on non-marketable investments includes observable price adjustments and our share of equity method investee gains (losses) and certain distributions. Q2 2026 vs. Q2 2025 In Q2 2025, gains (losses) on equity investments, net were primarily driven by unrealized gains (losses) on non-marketable equity investments, which included $469 million of upward observable price adjustments, of which $396 million related to a single investee. In Q2 2026, interest and other, net included a $12.5 billion net loss from the change in fair value of the derivative liability for the Escrowed Shares (refer to "Note 4: Earnings (Loss) Per Share and Stockholders' Equity" within Notes to Consolidated Condensed Financial Statements). YTD 2026 vs. YTD 2025 In YTD 2026, gains (losses) on equity investments, net were primarily driven by mark-to-market losses on marketable equity investments due to share price declines related to two of our investments, partially offset by upward observable price adjustments related to five of our non-marketable equity investments. In addition, impairment charges on non-marketable equity investments were mostly offset by realized gains on sales of equity investments. MD&A 37 Table of Contents In YTD 2025, gains (losses) on equity investments, net were driven by upward observable price adjustments and realized gains on sales of equity investments, net, partially offset by unrealized losses on marketable equity investments and impairment charges. In YTD 2026, interest and other, net included a $13.6 billion net loss from the change in fair value of the derivative liability for the Escrowed Shares, partially offset by a benefit of $223 million resulting from the change in fair value of liquidated damage provisions related to our Ireland SCIP arrangement (refer to "Note 3: Non-Controlling Interests" within Notes to Consolidated Condensed Financial Statements). In YTD 2025 interest and other, net included $94 million of charges related to the sale of our NAND memory business (refer to "Note 9: Acquisitions and Divestitures" within Notes to Consolidated Condensed Financial Statements), unfavorable foreign currency movements, and a decrease in interest income. Provision for (Benefit from) Taxes Three Months Ended Six Months Ended ($ 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) % Q2 2026 vs. Q2 2025 and YTD 2026 vs. YTD 2025 In all periods presented, 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, and 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 Q2 2026 and YTD 2026, compared to Q2 2025 and YTD 2025, primarily due to increased stock-based compensation deductions. Net Income (Loss) Attributable to Non-Controlling Interests Net income (loss) attributable to non-controlling interests is impacted by the minority-owned portion of our consolidated, majority-owned subsidiaries. Three Months Ended Six Months Ended (In Millions) Jun 27, 2026 Jun 28, 2025 Jun 27, 2026 Jun 28, 2025 Ireland SCIP $ — $ 59 $ 135 $ 98 Arizona SCIP 176 (140) 359 (232) Mobileye (5) (7) (872) (19) IMS 14 (18) 10 (19) Total net income (loss) attributable to non-controlling interests $ 185 $ (106) $ (368) $ (172) Q2 2026 vs. Q2 2025 In Q2 2026, net income attributable to non-controlling interests was primarily driven by income earned by Arizona SCIP based on the ongoing placement of their manufacturing assets into service. In Q2 2025, net loss attributable to non-controlling interests was primarily driven by start-up construction expenses incurred by Arizona SCIP. As described in “Repurchase of Non-Controlling Interests in Ireland SCIP” at the beginning of this MD&A, in Q2 2026, we acquired all of the outstanding minority holder ownership interests in Ireland SCIP, one of our majority-owned, consolidated subsidiaries, for $14.2 billion in cash. The equity transaction closed on April 8, 2026, after which net income attributable to non-controlling interests in Ireland SCIP ceased. YTD 2026 vs. YTD 2025 In YTD 2026, net loss attributable to non-controlling interests was primarily driven by a non-cash goodwill impairment charge related to our Mobileye reporting unit in Q1 2026, partially offset by income earned by Arizona SCIP based on the ongoing placement of their manufacturing assets into service. In YTD 2025, net loss attributable to non-controlling interests was primarily driven by start-up construction expenses incurred by Arizona SCIP. MD&A 38 Table of Contents Liquidity and Capital Resources We believe we have sufficient sources of funding to meet our business requirements for the next 12 months and in the longer term. Our primary sources of liquidity are cash generated by operations and our total cash and short-term investments, as shown in the following table. These sources are further supplemented by our drawn and undrawn committed credit facilities and other borrowing capacity; recent equity securities agreements and issuances; possible future debt and equity issuances pursuant to our shelf registration statement; monetization of non-core assets and contributions from our Arizona SCIP partner. Short-Term Investing and Borrowing When assessing our current sources of liquidity, we consider our total cash and short-term investments balances as follows: (In Millions) Jun 27, 2026 Dec 27, 2025 Cash and cash equivalents $ 12,874 $ 14,265 Short-term investments 16,853 23,151 Total cash and short-term investments $ 29,727 $ 37,416 Total debt $ 50,537 $ 46,585 In Q1 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. Additionally, we have access to our $7.0 billion revolving credit facility, which remains available until February 2029. In Q2 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. We have other potential sources of liquidity including our commercial paper program and our automatic shelf registration statement on file with the SEC, pursuant to which we may offer an unspecified amount of debt, equity and other securities. Under our commercial paper program, we have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion. As of June 27, 2026, we had no commercial paper obligations outstanding and no outstanding borrowings on the revolving credit facilities. As part of our ongoing capital management strategy to optimize our debt portfolio, we may utilize make-whole provisions, tender offers, or open market repurchases of our debt prior to maturity. In Q2 2026, we did not extinguish any debt prior to maturity. As described in “Repurchase of Non-Controlling Interests in Ireland SCIP” at the beginning of this MD&A, in Q2 2026 we acquired the minority ownership interest in our majority-owned and consolidated Ireland SCIP VIE for aggregate cash consideration of $14.2 billion, inclusive of transaction costs. We funded the repurchase of Apollo's non-controlling equity interest through a combination of our existing cash and cash equivalents, short-term investments and a $6.5 billion term loan. The term loan facility was repaid in Q2 2026 using proceeds from the issuance of $6.5 billion aggregate principal amount of senior fixed-rate notes described above. Refer to “Note 11: Borrowings” within Notes to Consolidated Condensed Financial Statements. Our total cash and short-term investments and related cash flows may be affected by certain discretionary actions we may take with customers and suppliers to accelerate or delay certain cash receipts or payments to manage liquidity, among other factors, for our strategic business requirements. These actions can include, among others, negotiating with suppliers to optimize our payment terms and conditions, adjusting the amounts and timing of cash flows associated with customer sales programs and collections, managing inventory levels and purchasing practices and selling certain of our accounts receivable on a non-recourse basis to third-party financial institutions. While such actions have benefited, and may further benefit, cash flow in the near term, we may experience a corresponding detriment to cash flow in future periods as these actions cease or as the impacts of these actions reverse or normalize. We maintain a diverse investment portfolio that we continually analyze based on issuer, industry and country. Substantially all of our investments in debt instruments were in investment-grade securities. Funding Requirements Our short-term funding requirements include capital expenditures for worldwide manufacturing and assembly and test operations, including investments in our process technology roadmap; investments in our product roadmap; working capital requirements, including cash outlays associated with the 2025 Restructuring Plan and prepayments we may enter into to secure supply capacity; partner distributions to our non-controlling interest holder related to Arizona SCIP; reducing outstanding indebtedness; potential acquisitions and strategic investments. Our long-term funding requirements incrementally contemplate investments in significant manufacturing expansion plans and investments to accelerate our process technology. These plans include expanding existing operations in Arizona, New Mexico and Oregon and investing in a new leading-edge manufacturing facility in Ohio in the long term. In Q1 2026, we entered into long-term arrangements with customers that included deposits totaling $1.7 billion, which were reflected within other accrued liabilities and other long-term liabilities, and for which the related cash was received in Q2 2026. In response to industry shortages of substrates and other components and to support long-term customer arrangements, we continue to enter into long-term agreements with suppliers to secure component supply. Some of these supply arrangements involve prepayments, of which $934 million were made in YTD 2026. These arrangements accelerate cash outflows in the short term. MD&A 39 Table of Contents Cash flows from operating, investing, and financing activities were as follows: Six Months Ended (In Millions) Jun 27, 2026 Jun 28, 2025 Net cash provided by (used for) operating activities $ 8,102 $ 2,863 Net cash provided by (used for) investing activities (669) (2,005) Net cash provided by (used for) financing activities (8,548) 586 Net increase (decrease) in cash, cash equivalents, and restricted cash $ (1,115) $ 1,444 Operating Activities Operating cash flows consist of net income (loss) adjusted for certain non-cash items and changes in certain assets and liabilities. Cash provided by operations in the first six months of 2026 was higher compared to the first six months of 2025, primarily due to higher revenues and lower operating expenses after adjusting for non-cash items in the first six months of 2026 compared to the first six months of 2025. These cash favorable movements were partially offset by higher unfavorable changes in working capital adjustments in the first six months of 2026 compared to the first six months of 2025. Investing Activities Investing cash flows consist primarily of purchases, sales and maturities of short-term investments, capital expenditures and proceeds from divestitures. Cash used for investing activities in the first six months of 2026 was lower compared to the first six months of 2025, primarily due to higher sales and maturities of short-term investments, net of purchases and lower capital expenditures during the first six months of 2026 compared to the first six months of 2025. These cash-favorable movements were partially offset by lower proceeds from capital-related government incentives, cash used for the acquisition of Mentee Robotics and lower inflows from other investing in the first six months of 2026 compared to the first six months of 2025, as well as the absence of proceeds from the divestiture of our NAND memory business received in the first six months of 2025. Financing Activities Financing cash flows consist primarily of borrowings and repayments of term debt and commercial paper, financing payments for capital expenditures with extended payment terms, proceeds and payments related to strategic initiatives including SCIP partner contributions and distributions. Cash used for financing activities in the first six months of 2026, compared to cash provided by financing activities in the first six months of 2025, primarily related to partner distributions made to Apollo in connection with our repurchase of the 49% minority ownership interest in Ireland SCIP, repayment of term debt, the absence of proceeds from commercial paper issuances, higher payments on finance leases and restricted stock unit withholdings in the first six months of 2026. These unfavorable cash movements were partially offset by higher partner contributions, the issuance of term debt and lower financing payments for capital expenditures with extended payment terms in the first six months of 2026 compared to the first six months of 2025. MD&A 40 Table of Contents Risk Factors and Other Key Information