Key Highlights
- Intel’s Q2 earnings showed $0.38 per share on $16.1 billion in revenue, surpassing analyst predictions of $0.21 EPS and $14.43 billion in sales
- The company’s Q3 revenue outlook of $15.8B–$16.8B exceeded Wall Street’s $15.06B projection
- Data center business generated $6.3 billion, outperforming the anticipated $5.54 billion
- Shares have surged 178% this year following CEO Lip-Bu Tan’s restructuring efforts
- Intel Foundry secured a major contract from Google for 3 million Tensor Processing Units
Shares of Intel (INTC) soared over 7% during after-hours trading on Thursday following the semiconductor manufacturer’s impressive second-quarter financial results and optimistic third-quarter projections.
The company announced Q2 adjusted earnings per share of $0.38 with revenues reaching $16.1 billion. Analysts had forecasted earnings of $0.21 per share on $14.43 billion in revenue. This marked a significant improvement from the prior year’s loss of $0.10 per share on $12.9 billion in sales.
Since the beginning of 2026, Intel’s stock has skyrocketed 178%, although it still trades approximately 29% below its record closing price of $140.94 achieved on June 22, as of Thursday’s market close.
INTEL $INTC Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $16.1B (Est. $14.50B) 🟢; +25% YoY
🔹 Adj. EPS: $0.42 (Est. $0.22) 🟢
🔹 Adj Gross Margin: 41.8% (Est. 39%) 🟢; +1,210bps YoY
🔹Raises FY26 Capex $20B (prior $18B)Q3 Guide:
🔹 Revenue: $15.8B-$16.8B (Est. $15.2B) 🟢
🔹 Non-GAAP… pic.twitter.com/8rGtyx2ojI— Wall St Engine (@wallstengine) July 23, 2026
The company’s third-quarter revenue guidance of $15.8 billion to $16.8 billion significantly exceeded the analyst consensus of $15.06 billion. Additionally, the projected EPS of $0.38 surpassed expectations of $0.27.
The data center division produced $6.3 billion in revenue, exceeding projections of $5.54 billion. Meanwhile, client computing brought in $8.9 billion, outperforming the anticipated $7.99 billion.
Intel Foundry generated $5.8 billion in quarterly revenue, representing a 31% year-over-year increase and beating the $5.6 billion forecast.
“AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network,” CEO Lip-Bu Tan said.
Chief Financial Officer Dave Zinsner attributed the positive results to improved manufacturing yields and accelerated production cycles. The corporation announced intentions to “meaningfully increase” capital expenditures in manufacturing equipment, clean room facilities, and substrate materials.
CPU Market Experiences Renewed Momentum
The emergence of AI agents has created renewed demand for central processing units, as these technologies depend on CPUs for operations including database queries and document creation. This trend has provided a significant boost to Intel’s traditional chip business following an extended period of GPU market dominance.
Earlier in the week, Intel announced workforce reductions in its Data Center Group as part of an organizational realignment. The company stated it is “aligning its organization to ensure it has the right roles and skills in place.”
Manufacturing Division Gains Momentum
Intel’s chip fabrication business is attracting significant customer interest. Reports from The Information indicate that Google has ordered 3 million custom Tensor Processing Units to be manufactured by Intel. Additionally, Nvidia is reportedly evaluating Intel as a potential production partner.
This development arrives as Taiwan Semiconductor Manufacturing (TSM) faces challenges meeting high demand from companies like Nvidia, AMD, and Apple. Intel is positioned to capitalize as an alternative manufacturing solution.
In the consumer segment, escalating memory chip costs are prompting manufacturers to discontinue budget-oriented laptops and desktops while increasing prices on higher-end offerings.
Intel has been selected as a 2026 Barron’s stock pick and has garnered support from the Trump administration along with a strategic investment from Nvidia.
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