Key Highlights
- Second quarter earnings per share reached $0.38 against revenue of $16.1 billion, crushing analyst predictions of $0.21 EPS and $14.43 billion in sales
- Third quarter revenue outlook of $15.8Bā$16.8B exceeded Wall Street’s $15.06B projection
- Data center segment generated $6.3 billion in revenue, surpassing the $5.54 billion forecast
- Shares have soared 178% year-to-date amid CEO Lip-Bu Tan’s transformation strategy
- Google secured a major contract with Intel Foundry for production of 3 million specialized Tensor Processing Units
Shares of Intel (INTC) surged over 7% during extended trading hours on Thursday following the semiconductor giant’s impressive second-quarter financial results and optimistic third-quarter projections.
The company delivered adjusted earnings of $0.38 per share against total revenue of $16.1 billion for the second quarter. Analysts had anticipated earnings of just $0.21 per share with revenue reaching $14.43 billion. This marks a significant turnaround from the same period last year when Intel recorded a per-share loss of $0.10 on $12.9 billion in revenue.
The semiconductor manufacturer’s stock price has skyrocketed 178% from the beginning of 2026, although it still trades roughly 29% beneath its record closing price of $140.94 achieved on June 22.
INTEL $INTC Q2ā26 EARNINGS HIGHLIGHTS
š¹ Revenue: $16.1B (Est. $14.50B) š¢; +25% YoY
š¹ Adj. EPS: $0.42 (Est. $0.22) š¢
š¹ Adj Gross Margin: 41.8% (Est. 39%) š¢; +1,210bps YoY
š¹Raises FY26 Capex $20B (prior $18B)Q3 Guide:
š¹ Revenue: $15.8B-$16.8B (Est. $15.2B) š¢
š¹ Non-GAAPā¦ pic.twitter.com/8rGtyx2ojIā Wall St Engine (@wallstengine) July 23, 2026
For the upcoming third quarter, Intel projected revenue between $15.8 billion and $16.8 billion, significantly exceeding the analyst consensus of $15.06 billion. The earnings per share forecast of $0.38 also surpassed Wall Street’s expectation of $0.27.
The data center division produced $6.3 billion in revenue, outperforming the $5.54 billion projection. Meanwhile, client computing generated $8.9 billion, surpassing analyst estimates of $7.99 billion.
Intel Foundry recorded $5.8 billion in quarterly revenue, representing a 31% increase year-over-year and exceeding the $5.6 billion estimate.
“AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network,” CEO Lip-Bu Tan said.
Chief Financial Officer Dave Zinsner attributed the strong performance to improved factory yields and accelerated cycle times. The organization announced intentions to “meaningfully increase” capital expenditures in equipment, clean room facilities, and substrate materials.
AI-Driven CPU Demand Powers Expansion
The emergence of AI agents has created renewed demand for central processing units, as these systems depend on CPUs to execute functions including database queries and document creation. This shift has provided a significant boost to Intel’s traditional chip division following an extended period of GPU market dominance.
Intel confirmed workforce reductions within its Data Center Group earlier this week as part of organizational restructuring efforts. Company representatives stated the changes aim to “align its organization to ensure it has the right roles and skills in place.”
Manufacturing Division Gains Momentum
Intel’s foundry services are attracting significant interest from industry leaders. Reports from The Information indicate that Google has commissioned production of 3 million proprietary Tensor Processing Units through Intel’s manufacturing facilities. Additionally, Nvidia is reportedly evaluating Intel as a potential manufacturing partner.
This development occurs as Taiwan Semiconductor Manufacturing (TSM) faces challenges meeting explosive demand from major clients including Nvidia, AMD, and Apple. Intel is positioned to capitalize on opportunities as an alternative production source.
In the consumer market, escalating memory chip costs are prompting manufacturers to discontinue lower-margin notebook and desktop models while increasing prices on high-end offerings.
Barron’s selected Intel as a 2026 stock pick, and the chipmaker has garnered support from the Trump administration along with receiving investment capital from Nvidia.
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