INTC · Forward model · Intersegment eliminations
What has to happen in Intersegment eliminations
Model as of
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Intersegment eliminations
Basis quarter−$5.48B
Final quarter−$7.51B
Final revenue mix-35%
Not a business line but the contra-line that makes the model reconcile: it removes Intel Foundry's internal wafer sales to Intel Products on consolidation. It is the only shape that reproduces reported consolidated revenue with zero residual in all ten disclosed quarters, and it is projected as a coupled ratio of Intel Foundry revenue rather than as an independent growth line.
Last four quarters
2025 Q3
−$4.23B
Reported
2025 Q4
−$4.34B
Reported
2026 Q1
−$5.25B
Reported
2026 Q2
−$5.48B
Reported
Elimination of Intel Foundry intersegment revenueA small residual from other intersegment activity, $5M in 2026 Q2
Sequential growth
+1.7%/qtr
decaying toward +1.5%
+1.73%, which is Intel Foundry's +2.0% less 0.27 points, so eliminations fall to 0.948 of Foundry revenue.
Intersegment eliminations
Latest: −$7.51B (2031Q2E)
| Period | Value |
|---|---|
| 2024Q1 | −$4.38B |
| 2024Q2 | −$4.28B |
| 2024Q3 | −$4.32B |
| 2024Q4 | −$4.31B |
| 2025Q1 | −$4.70B |
| 2025Q2 | −$4.42B |
| 2025Q3 | −$4.23B |
| 2025Q4 | −$4.34B |
| 2026Q1 | −$5.25B |
| 2026Q2 | −$5.48B |
| 2026Q3E | −$5.57B |
| 2026Q4E | −$5.67B |
| 2027Q1E | −$5.76B |
| 2027Q2E | −$5.86B |
| 2027Q3E | −$5.95B |
| 2027Q4E | −$6.05B |
| 2028Q1E | −$6.15B |
| 2028Q2E | −$6.24B |
| 2028Q3E | −$6.34B |
| 2028Q4E | −$6.44B |
| 2029Q1E | −$6.54B |
| 2029Q2E | −$6.65B |
| 2029Q3E | −$6.75B |
| 2029Q4E | −$6.85B |
| 2030Q1E | −$6.96B |
| 2030Q2E | −$7.07B |
| 2030Q3E | −$7.18B |
| 2030Q4E | −$7.29B |
| 2031Q1E | −$7.40B |
| 2031Q2E | −$7.51B |
Assumptions & reasoning
- The ratio of eliminations to Intel Foundry revenue sat near 1.00 through 2025 Q3 and has fallen to 0.950 as external foundry revenue ramped from $22M in 2025 Q2 to $293M in 2026 Q2.
- The growth rate here is deliberately 0.27 points below Intel Foundry's in both the first and terminal quarter, which glides the ratio from 0.948 in 2026 Q3 to 0.901 by 2031 Q2 - the assumed terminal 0.90 - without an independent driver.
- The EBITDA margin is negative on a negative revenue line and so contributes positive EBITDA: the disclosed $254M of eliminations operating income on $(5,477)M of eliminated revenue is (4.64)%.
- Modelled as an independent growth line rather than as a coupled ratio, this vertical would silently break the consolidated revenue total by hundreds of millions a quarter.