Intel reported second-quarter revenue of $16.1 billion and adjusted earnings of 42 cents per share, surpassing consensus estimates from LSEG and notching its fastest quarterly revenue growth rate since 2011, according to company earnings data released Thursday. The performance drove an 11% jump for the stock in extended trading, fueled by surging demand for AI server processors and strong gross margin recovery.
Intel Q2 Financial Results Outpace Analyst Expectations
According to LSEG consensus estimates, Wall Street expected Intel to post adjusted earnings per share of 21 cents on $14.42 billion in revenue. The chipmaker cleared those projections easily, delivering 42 cents per share and $16.1 billion in top-line revenue. The resulting 25% revenue growth marked the company’s fastest pace for any quarter since the third quarter of 2011.
Intel shares have climbed over 170% so far in 2026 through Thursday’s close, following an 84% surge last year when the U.S. government acquired a 10% stake to support domestic chip manufacturing. Despite that broader momentum, the stock experienced a recent pullback, dropping 28% in July prior to the earnings release.
Did you know? Intel’s gross margin recovered to 42% for the quarter, up sharply from 2.5% in the same period last year, driven by higher revenue scale and pricing advantages.
AI Infrastructure Boom Drives Data Center Growth
“AI is driving unprecedented demand for compute,” Intel CEO Lip-Bu Tan said in a statement accompanying the results. “As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise.”
Data center sales formed the backbone of the quarter’s expansion. Revenue in Intel’s data center business climbed 59% to $6.3 billion. Meanwhile, the client computing group—which manufactures PC chips—grew 13% to reach $8.9 billion. According to company executives, PC sales are expected to remain flat in the third quarter due to an ongoing memory shortage.
Long-Term Agreements and Foundry Expansion Plans
To lock in market share and protect against potential downturns in the artificial intelligence sector, Intel is establishing long-term customer agreements for its server CPUs. According to CFO David Zinsner, the company secured 10 such agreements, with customers currently demanding more volume than manufacturing lines can supply.
Intel’s foundry business generated $5.8 billion in sales, representing a 31% annual increase. The division landed Fortinet as a named customer earlier in the week utilizing older manufacturing tech. Meanwhile, Zinsner told CNBC that the advanced 14A manufacturing process is tracking ahead of previous technology cycles.
Frequently Asked Questions
What were Intel’s Q2 earnings per share and revenue?
Intel reported adjusted earnings of 42 cents per share on $16.1 billion in revenue, beating LSEG estimates of 21 cents per share and $14.42 billion in revenue.
What drove Intel’s revenue growth?
According to Intel, the company’s 25% year-over-year revenue growth was heavily propelled by a 59% increase in data center processor sales tied to artificial intelligence infrastructure demand.
What is Intel expecting for the next quarter?
Intel issued third-quarter guidance projecting adjusted earnings of 38 cents per share on revenue between $15.8 billion and $16.8 billion, topping analyst expectations.
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