# Intel earned $1,796m from operations and lost $11.0bn — the $12.5bn grows when the stock does

![Intel earned $1,796m from operations and lost $11.0bn — the $12.5bn grows when the stock does](https://aiswingx.com/static/covers/intc-2026q2_cover.jpg?v=1790178847)

**2026 Q2 10-Q: shares owed to the US government are carried as a liability at fair value, so a rising share price is recorded as a loss. That one line took $12.5bn out of the quarter, and the liability went from $2.7bn to $15.6bn in six months**

Read Intel's 2026 second-quarter statement of operations downward and it turns twice. Operating income is $1,796m; net loss is $11.0bn. Between them sits a line of minus $12,576m. Note 4 records that most of it is the change in fair value of Escrowed Shares issued to the US government.

- 종목: INTC (Intel Corporation)
- 분기: 2026Q2 · 10-Q
- 작성: 2026-09-23 15:54 UTC
- 원문: https://aiswingx.com/p/intc-2026q2

## 숫자 하나
Fair-value loss on Escrowed Shares of $12.5bn for the quarter, $13.6bn for six months. The liability went from $2.7bn at December 27, 2025 to $15.6bn at June 27, 2026. Operating income in the same quarter was $1,796m.

## 비유 하나
(구독자 전용)

## 출처 하나
Intel Corporation Form 10-Q (2026 second quarter, accession 0000050863-26-000157): consolidated statement of operations; Note 4, Earnings (Loss) Per Share and Stockholders' Equity (Escrowed Shares issued to the US government, Warrants); Note 7, Income Taxes; Note 5, Other Financial Instruments; statement of cash flows; statement of stockholders' equity. Quarterly figures cross-checked against SEC XBRL Company Facts.

## 다음 분기에 볼 것
(구독자 전용)

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## What happened

Read Intel's 2026 second-quarter statement of operations downward and it changes direction twice.

| | 2026 Q2 | Year earlier |
|---|---|---|
| Revenue | $16,128m | $12,860m |
| **Operating income** | **$1,796m** | $(3,176)m |
| Interest and other, net | **$(12,576)m** | $(95)m |
| **Pre-tax income** | **$(10,819)m** | $(2,769)m |
| Net income | **$(11,033)m** | $(3,024)m |

Down to the operating line the year has reversed: from a $3,176m operating loss to **$1,796m of operating income**. Then a single line below it takes out **$12,576m**.

Note 4 says what it is: the change in fair value of **Escrowed Shares issued to the US government**. $12.5bn for the quarter, $13.6bn for the six months.

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## FAQ

**Q. Did $11.0bn of cash leave the company?**

Mostly no. The cash flow statement adds the Escrowed Shares fair-value loss back as a non-cash item. Cash from operations was positive in the same quarter.

**Q. Why is a rising share price a loss?**

The shares owed to the government are treated as an obligation and remeasured at market value. When the price rises, so does the value of what must be handed over, and the difference is recorded as a loss.

**Q. Why pay tax on a loss that large?**

The 10-Q states that a domestic valuation allowance meant the domestic loss brought no benefit. The rate and the amounts are set out in the subscriber section.

**Q. Can it grow further?**

Shares remain unreleased and the liability balance is disclosed as of June 27. The share counts, the balance and the warrant terms are in the subscriber section.

**Q. Where can I check this myself?**

On SEC EDGAR, open Intel Corporation's 2026 second-quarter 10-Q (accession 0000050863-26-000157) and read Note 4 and Note 7.