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Intel Q2 Earnings Surpass Estimates on Solid Top-Line Growth
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Key Takeaways
INTC beats earnings and revenue estimates as Q2 2026 revenues rose 25% year over year.
INTC witnessed growth from Xeon CPUs, AI PCs, Intel 18A output, pricing and advanced packaging.
Intel expects Q3 2026 revenues of $15.8B-$16.8B and non-GAAP EPS of about 38 cents.
Intel Corporation (INTC - Free Report) reported strong second-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company reported 25% year-over-year revenue growth, supported by strong demand for Xeon server CPUs and AI PCs, higher Intel 18A output, improving yields and cycle times, favorable product mix and pricing, and continued momentum in purpose-built silicon application-specific integrated circuit products and advanced packaging.
Net Income
The company reported a GAAP loss of $11.03 billion or a loss of $2.16 per share compared with a net loss of $2.92 billion or a loss of 67 cents per share in the year-ago quarter. Despite higher revenues, GAAP earnings declined sharply due to higher interest and other expenses during the quarter.
Excluding non-recurring items, non-GAAP earnings in the reported quarter were $2.2 billion or 42 cents per share against a net loss of $0.44 billion or a loss of 10 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 21 cents.
Intel Corporation Price, Consensus and EPS Surprise
GAAP revenues increased to $16.13 billion from $12.86 billion in the year-ago quarter. The company witnessed solid growth in its total Products and Foundry business segments. The top line beat the consensus estimate of $14.41 billion.
Segment Performance
Client Computing and Physical AI Group revenues increased to $8.88 billion from $7.87 billion, driven by strong demand for client CPUs, growing adoption of AI PCs, the launch of Intel Core Ultra Series 3 and Intel Core Series 3 processors, and a favorable product mix with higher average selling prices.
Datacenter and AI Group revenues improved to $6.26 billion from $3.94 billion, driven by strong demand from hyperscale and enterprise customers, robust adoption of Xeon 6 processors for AI infrastructure, continued growth in purpose-built silicon products, and additional strategic customer wins and long-term agreements.
While total Intel Products revenues were up to $15.14 billion from $11.81 billion, Intel Foundry revenues increased to $5.77 billion from $4.42 billion, owing to higher fab volumes, strong growth in Intel 18A output, improving yields, better cycle times, and increasing wafer starts across Intel 7, Intel 3, and Intel 18A. All Other revenues, which include Altera, Mobileye and other businesses, were $0.7 billion.
Other Details
Non-GAAP gross profit was $6.74 billion compared with $3.81 billion in the year-ago quarter, with respective margins of 41.8% and 29.7%. Non-GAAP research and development and marketing, general and administrative expenses totaled $3.97 billion compared with $4.32 billion in the year-ago period. Non-GAAP operating income was $2.77 billion against an operating loss of $0.5 billion in the year-ago quarter, with respective margins of 17.2% and a negative 3.9%.
Cash Flow & Liquidity
As of June 27, 2026, Intel had cash and cash equivalents of $12.87 billion and long-term debt of $48.55 billion. In the first six months of 2026, the company generated $8.1 billion in cash compared with $2.86 billion in the year-ago period. In the second quarter of 2026, Intel generated $7.01 billion of cash from operating activities compared with $2.05 billion in the year-ago quarter.
Outlook
For the third quarter of 2026, Intel expects GAAP revenues to be in the range of $15.8-$16.8 billion. Non-GAAP gross margin is expected to be 42%. Non-GAAP earnings are expected to be around 38 cents per share. Non-GAAP tax rate is anticipated to be 11%.
Arista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying growth of 46.91% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 24.01%. The company delivered an average earnings surprise of 14.08% in the last four reported quarters.
Corning Incorporated (GLW - Free Report) is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share, implying growth of 26.67% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 23.89%. The company delivered an average earnings surprise of 2.41% in the last four reported quarters.
View the Zacks #1 Rank List
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Intel Q2 Earnings Surpass Estimates on Solid Top-Line Growth
Key Takeaways
Intel Corporation (INTC - Free Report) reported strong second-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company reported 25% year-over-year revenue growth, supported by strong demand for Xeon server CPUs and AI PCs, higher Intel 18A output, improving yields and cycle times, favorable product mix and pricing, and continued momentum in purpose-built silicon application-specific integrated circuit products and advanced packaging.
Net Income
The company reported a GAAP loss of $11.03 billion or a loss of $2.16 per share compared with a net loss of $2.92 billion or a loss of 67 cents per share in the year-ago quarter. Despite higher revenues, GAAP earnings declined sharply due to higher interest and other expenses during the quarter.
Excluding non-recurring items, non-GAAP earnings in the reported quarter were $2.2 billion or 42 cents per share against a net loss of $0.44 billion or a loss of 10 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 21 cents.
Intel Corporation Price, Consensus and EPS Surprise
Intel Corporation price-consensus-eps-surprise-chart | Intel Corporation Quote
Revenues
GAAP revenues increased to $16.13 billion from $12.86 billion in the year-ago quarter. The company witnessed solid growth in its total Products and Foundry business segments. The top line beat the consensus estimate of $14.41 billion.
Segment Performance
Client Computing and Physical AI Group revenues increased to $8.88 billion from $7.87 billion, driven by strong demand for client CPUs, growing adoption of AI PCs, the launch of Intel Core Ultra Series 3 and Intel Core Series 3 processors, and a favorable product mix with higher average selling prices.
Datacenter and AI Group revenues improved to $6.26 billion from $3.94 billion, driven by strong demand from hyperscale and enterprise customers, robust adoption of Xeon 6 processors for AI infrastructure, continued growth in purpose-built silicon products, and additional strategic customer wins and long-term agreements.
While total Intel Products revenues were up to $15.14 billion from $11.81 billion, Intel Foundry revenues increased to $5.77 billion from $4.42 billion, owing to higher fab volumes, strong growth in Intel 18A output, improving yields, better cycle times, and increasing wafer starts across Intel 7, Intel 3, and Intel 18A. All Other revenues, which include Altera, Mobileye and other businesses, were $0.7 billion.
Other Details
Non-GAAP gross profit was $6.74 billion compared with $3.81 billion in the year-ago quarter, with respective margins of 41.8% and 29.7%. Non-GAAP research and development and marketing, general and administrative expenses totaled $3.97 billion compared with $4.32 billion in the year-ago period. Non-GAAP operating income was $2.77 billion against an operating loss of $0.5 billion in the year-ago quarter, with respective margins of 17.2% and a negative 3.9%.
Cash Flow & Liquidity
As of June 27, 2026, Intel had cash and cash equivalents of $12.87 billion and long-term debt of $48.55 billion. In the first six months of 2026, the company generated $8.1 billion in cash compared with $2.86 billion in the year-ago period. In the second quarter of 2026, Intel generated $7.01 billion of cash from operating activities compared with $2.05 billion in the year-ago quarter.
Outlook
For the third quarter of 2026, Intel expects GAAP revenues to be in the range of $15.8-$16.8 billion. Non-GAAP gross margin is expected to be 42%. Non-GAAP earnings are expected to be around 38 cents per share. Non-GAAP tax rate is anticipated to be 11%.
Zacks Rank
Intel currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.
Amphenol Corporation (APH - Free Report) is set to release second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, implying growth of 46.91% from the year-ago reported figure.
Amphenol has a long-term earnings growth expectation of 24.01%. The company delivered an average earnings surprise of 14.08% in the last four reported quarters.
Corning Incorporated (GLW - Free Report) is set to release second-quarter 2026 earnings on July 28. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share, implying growth of 26.67% from the year-ago reported figure.
Corning has a long-term earnings growth expectation of 23.89%. The company delivered an average earnings surprise of 2.41% in the last four reported quarters.