Intel (INTC) earnings report Q2 2026

Intel It reported better-than-expected second-quarter results on Thursday, posting the fastest revenue growth in any quarter since 2011 and issuing guidance that beat expectations. The stock rose nearly 4% in extended trading.

Here’s how the chipmaker performed against LSEG consensus estimates:

• earnings per share: 42 cents, adjusted, versus 21 cents expected
• Revenues: $16.1 billion versus $14.42 billion expected

Intel shares were up more than 170% so far in 2026 as of Thursday’s close, after surging 84% last year when the U.S. government bought a 10% stake in the company as part of an effort to support U.S. chip production. However, the stock has taken a nosedive recently, falling 28% in July.

Despite the recent downturn, the company is powered by the AI ​​infrastructure boom that is helping sell server processors. Intel’s 25% revenue increase was the fastest increase of all periods almost 15 years.

“AI is driving unprecedented demand for computing,” CEO Lip-Bu Tan said in a statement. “Intel is well positioned to achieve sustainable growth across our CPU lineup as we continue implementation.”

For the current quarter, Intel said it expects adjusted earnings per share to be 38 cents, with revenue to be between $15.8 billion and $16.8 billion. Analysts expected revenue of $15.1 billion and earnings per share of 27 cents, according to LSEG.

Intel also said it has begun striking long-term deals with customers for server CPUs, with some keeping pricing steady and others focusing on chip volume.

It’s a move that’s especially common in memory as sellers try to maintain their current high prices and market power in case the AI ​​market changes. Intel said it had reached 10 long-term agreements, and CFO David Zinsner said the company was facing supply shortages, with data center customers demanding more than it could produce.

“Customers continue to signal a strong and sustainable spending environment,” Zinsner said on an earnings call with analysts.

Revenue from the company’s customer computing group, which makes chips for PCs, rose 13% to $8.9 billion. It’s still Intel’s largest unit, but strong growth is coming from its data center business, where revenue rose 59% to $6.3 billion. Intel said it expects flat PC sales in the third quarter due to memory shortages.

Intel is increasing capital spending, aiming for a “meaningful increase” next year as it aggressively seeks to transform into a chip maker for other companies. Zinsner told CNBC’s Kristina Partsinevelos that the company’s latest manufacturing process, called 14A, is ahead of older technologies at the same point in the cycle. Intel said its foundry reported sales of $5.8 billion, up 31% year over year.

“I wanted to give investors some line of sight to at least expect the number to increase,” Zinsner said on the earnings call. Most of the spending will be on factory tooling, he said.

Still, Intel hasn’t announced a major customer for its foundry as investors and potential customers continue to wait. First of all, it produces its own chips. Intel’s foundry picked up Fortinet as its first customer under Tan earlier this week, but it uses older manufacturing technology to produce security chips.

Intel’s gross profit margin also increased from 2.5% in the same period the previous year to 42%; The company attributed this to the advantage of scale that generates more revenue, as well as selling chips at higher margins and prices.

WRISTWATCH: Bernstein’s Stacy Rasgon at Intel