# Intel (INTC) Q2 2026 earnings

Results filed 2026-07-23 for the quarter ended 2026-06-27. Source page: https://earnings.opennash.com/companies/intc/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/50863/000005086326000155/0000050863-26-000155-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Second-quarter revenue was $16.1 billion, up 25% year-over-year (YoY); second-quarter earnings (loss) per share (EPS) attributable to Intel was $(2.16); non-GAAP EPS attributable to Intel was $0.42.

Intel's second-quarter revenue was $16.1 billion, up 25% from a year ago, which management called its strongest revenue growth in more than fifteen years. Data Center and AI revenue rose 59% to $6.3 billion, and Client Computing and Physical AI revenue rose 13%. Non-GAAP earnings per share were $0.42. The GAAP loss per share of $(2.16) was driven mainly by a non-cash charge tied to shares held in escrow for the U.S. government.
Intel forecasts third-quarter revenue of $15.8 billion to $16.8 billion, with non-GAAP EPS of $0.38. Management says AI-driven demand is strong and is raising spending on equipment, clean room space and substrates. The tension is cash: adjusted free cash flow was $(8.4) billion in the quarter, and Intel Foundry still lost money at the operating level, with an operating loss of $2,089 million. Industry-wide substrate and memory shortages are also a risk.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $16.1 billion | up 25% year-over-year | GAAP |
| Net income (loss) attributable to Intel | $(11,033) |  | GAAP |
| Diluted EPS attributable to Intel | $(2.16) | vs. $(0.67) a year ago | GAAP |
| Non-GAAP diluted EPS attributable to Intel | $0.42 | vs. $(0.10) a year ago | non-GAAP |
| Gross margin | 40.4% | up 12.9 ppts | GAAP |
| Non-GAAP gross margin | 41.8% | up 12.1 ppts | non-GAAP |
| Operating income | $1,796 |  | GAAP |
| Operating margin | 11.1% | up 35.8 ppts | GAAP |
| Non-GAAP operating margin | 17.2% | up 21.1 ppts | non-GAAP |
| Cash from operations | $7.0 billion |  | GAAP |
| Adjusted free cash flow | $(8,419) | vs. $(1,050) a year ago | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Client Computing and Physical AI Group (CCPG) | $8.9 billion | up 13% |
| Data Center and AI (DCAI) | 6.3 billion | up 59% |
| Total Intel Products | 15.1 billion | up 28% |
| Intel Foundry | 5.8 billion | up 31% |
| All other | 0.7 billion | down 33% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Revenue | third quarter of 2026 | $15.8-16.8 billion |
| GAAP gross margin | third quarter of 2026 | 41.0% |
| Non-GAAP gross margin | third quarter of 2026 | 42.0% |
| GAAP tax rate | third quarter of 2026 | 1% |
| Non-GAAP tax rate | third quarter of 2026 | 11% |
| GAAP diluted EPS attributable to Intel | third quarter of 2026 | $0.31 |
| Non-GAAP diluted EPS attributable to Intel | third quarter of 2026 | $0.38 |
| GAAP operating expenses | full-year 2026 | $23.0 |
| Non-GAAP operating expenses | full-year 2026 | $16.5 |

## Key takeaways

1. **Revenue grew 25%, fastest in fifteen-plus years** Second-quarter revenue was $16.1 billion, up 25% year-over-year. CEO Lip-Bu Tan called it Intel's strongest revenue growth in more than fifteen years.
2. **Data center revenue jumped 59% on AI demand** Data Center and AI revenue was 6.3 billion, up 59%, while Client Computing and Physical AI was $8.9 billion, up 13%. DCAI operating income was $2,474 million versus $633 million a year ago.
3. **GAAP loss reflects escrowed-share mark-to-market charge** GAAP EPS was $(2.16) while non-GAAP EPS was $0.42. The reconciliation shows a $2.45 per-share adjustment for (gains) losses on mark-to-market of Escrowed Shares.
4. **Foundry still loses money despite 31% growth** Intel Foundry revenue was 5.8 billion, up 31%, but it posted an operating loss of $(2,089) million. Intel 18A-P entered risk production.
5. **Heavy investment drives negative adjusted free cash flow** Adjusted free cash flow was $(8,419) million on $7.0 billion of operating cash flow. The CFO said Intel is meaningfully increasing investments in equipment, clean room space, and substrates.

## Questions

**What were Intel's Q2 2026 revenue and earnings?** Revenue was $16.1 billion, up 25% year-over-year. GAAP diluted EPS was $(2.16) and non-GAAP EPS was $0.42.
**Why was Intel's GAAP EPS negative while non-GAAP EPS was positive?** The reconciliation shows a $2.45 per-share adjustment for (gains) losses on mark-to-market of Escrowed Shares, which Intel excludes from non-GAAP results. Smaller items include share-based compensation of $0.13 and restructuring of $0.03.
**What is Intel's guidance for Q3 2026?** Intel expects revenue of $15.8 billion to $16.8 billion, non-GAAP gross margin of 42.0% and non-GAAP EPS of $0.38. GAAP EPS is expected to be $0.31.
**How did Intel's business segments perform?** Data Center and AI revenue rose 59% to 6.3 billion and Client Computing and Physical AI rose 13% to $8.9 billion. Intel Foundry revenue rose 31% to 5.8 billion.
**How is Intel's cash flow and spending?** Intel generated $7.0 billion in cash from operations in the quarter, but adjusted free cash flow was $(8,419) million. Management is increasing investment in equipment, clean room space and substrates.

## Slides and investor documents

- [Earnings Presentation](https://d1io3yog0oux5.cloudfront.net/_ae41de1e3c92a2d70014908a6d92f612/intel/db/887/9266/earnings_presentation/Q2+2026+Earnings+Deck.pdf) (Slide deck)
- [Prepared Remarks](https://d1io3yog0oux5.cloudfront.net/_ae41de1e3c92a2d70014908a6d92f612/intel/db/887/9266/prepared_remarks/Q2+2026+Prepared+Remarks.pdf) (CFO commentary)