Key Highlights
- Intel’s Q2 earnings per share reached $0.42, significantly exceeding the $0.21 analyst consensus, while revenue totaled $16.1B compared to $14.4B expectations
- The chipmaker achieved 25% year-over-year revenue expansion — marking the company’s most robust sales acceleration in approximately 15 years
- The Foundry division generated $5.8B in revenue, representing a 31% annual increase and surpassing analyst projections
- Management’s Q3 outlook projects $0.38 EPS with revenue guidance of $15.8B–$16.8B, exceeding Street expectations
- INTC shares have climbed 172% year-to-date in 2026, despite trading approximately 29% under the $140.94 record high
Intel’s second-quarter performance exceeded expectations across the board, sending shares higher in extended trading Thursday. The stock climbed 12% after hours before moderating to a 4% gain in Friday’s premarket session, trading at $100.23.
The company’s adjusted earnings per share for Q2 reached $0.42, handily surpassing the Street’s $0.21 projection. Total revenue landed at $16.1 billion versus the anticipated $14.4 billion. This marks a significant turnaround from the same period last year, when Intel reported a $0.10 per share loss on $12.9 billion in sales.
Chief Executive Lip-Bu Tan attributed the strong performance to artificial intelligence adoption. “AI is driving unprecedented demand for compute,” Tan explained, emphasizing that Intel stands “well-positioned to capture sustainable growth” spanning its processor portfolio, custom ASIC offerings, and foundry operations.
The Foundry segment delivered $5.8 billion in quarterly revenue, marking a 31% year-over-year increase and exceeding the $5.6 billion Wall Street projection. The division also secured Fortinet as a new customer, bolstering investor optimism around the manufacturing operations.
Financial Performance Breakdown
The data center and AI segment experienced remarkable momentum, with revenue surging 59% compared to the prior year. Total company revenue expanded 25%, representing the strongest growth trajectory in nearly a decade and a half. This performance signals a notable reversal for the semiconductor giant, which many market observers had dismissed as losing ground.
Looking ahead to Q3, Intel provided guidance calling for earnings of $0.38 per share alongside revenue ranging from $15.8 billion to $16.8 billion. These projections exceed consensus estimates of $0.27 EPS and $15.1 billion in sales.
Management also indicated plans to substantially expand capital investments in manufacturing equipment, clean room capacity, and substrate production to accommodate anticipated demand through 2027.
Wall Street Maintains Reserved Outlook
Notwithstanding the impressive quarterly results, the average analyst rating for INTC stock remains at Hold, with a median price target of $102.77. Among covering analysts, 15 rate the stock as Buy, 29 maintain Hold ratings, and 3 recommend Sell. Additionally, 2 analysts have assigned Strong Buy ratings.
Raymond James elevated Intel to “moderate buy” status during April. Freedom Capital upgraded shares to “strong buy.” Robert W. Baird increased its price objective from $50 to $75 while maintaining a neutral stance. Conversely, KGI Securities downgraded from outperform to neutral with a $71 target price.
Among institutional investors, Mizuho Markets Americas dramatically reduced its INTC holdings by 99% during Q1, divesting 841,355 of 850,000 shares, retaining only 8,645 shares valued at approximately $382,000. Meanwhile, other institutional players expanded their positions, with iA Global Asset Management increasing its stake by 17% in Q4.
INTC has appreciated 172% in 2026 year-to-date, though shares remain roughly 29% below the June 22 all-time closing peak of $140.94. The stock’s 52-week trading range extends from $18.97 to $142.35.
Sell-side analysts project full-year 2026 earnings of $0.65 per share for Intel.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
