Key Highlights
- Intel’s Q2 earnings per share reached $0.42, doubling the expected $0.21, while revenue totaled $16.1B versus $14.4B forecasted
- Year-over-year sales expanded 25% ā marking Intel’s most rapid revenue acceleration in approximately 15 years
- The Intel Foundry division generated $5.8B in revenue, climbing 31% compared to last year and surpassing projections
- Third-quarter outlook projects $0.38 EPS with revenue ranging from $15.8B to $16.8B, exceeding analyst predictions
- INTC shares have surged 172% year-to-date in 2026, despite trading roughly 29% beneath the record peak of $140.94
Intel’s second-quarter performance exceeded expectations across the board, sending shares soaring during after-hours trading Thursday. The stock climbed 12% initially before moderating to approximately 4% gains in Friday’s premarket session, reaching $100.23.
The chipmaker’s adjusted earnings per share for Q2 landed at $0.42, significantly outpacing Wall Street’s $0.21 projection. Revenue totaled $16.1 billion, crushing the $14.4 billion consensus. This represents a remarkable turnaround from the same period last year when Intel recorded a $0.10 loss per share on $12.9 billion in sales.
Chief Executive Lip-Bu Tan credited artificial intelligence as the primary catalyst. “AI is driving unprecedented demand for compute,” Tan stated, emphasizing that Intel maintains a strong position to “capture sustainable growth” throughout its CPU portfolio, ASIC offerings, and foundry operations.
The Intel Foundry segment delivered $5.8 billion in quarterly revenue, representing a 31% increase from the prior year and topping the $5.6 billion analyst forecast. The division gained momentum with the announcement of Fortinet as a fresh foundry client, bolstering investor optimism around the manufacturing operations.
Breaking Down the Performance
Revenue from data center and artificial intelligence operations skyrocketed 59% compared to last year. Total company revenue expanded by 25%, representing the fastest growth rate in close to 15 years. These figures mark a significant reversal for a company many industry watchers had previously dismissed.
Looking ahead to Q3, Intel provided guidance calling for $0.38 in earnings per share alongside revenue spanning $15.8 billion to $16.8 billion. Both metrics exceed Wall Street’s consensus forecasts of $0.27 EPS and $15.1 billion in sales.
Management also indicated plans to substantially expand capital expenditures on equipment, clean room facilities, and substrate capacity to accommodate anticipated growth extending through 2027.
Wall Street Maintains Reserved Outlook
Notwithstanding the impressive quarterly results, analyst consensus on INTC stock remains at Hold, featuring an average price target of $102.77. Among covering analysts, 15 maintain Buy ratings, 29 recommend Hold, and 3 suggest Sell. Two analysts issue Strong Buy recommendations.
Raymond James elevated Intel to “moderate buy” status during April. Freedom Capital upgraded the stock to “strong buy.” Robert W. Baird increased its price objective from $50 to $75 while maintaining a neutral stance. Conversely, KGI Securities downgraded from outperform to neutral with a $71 target.
Regarding institutional positioning, Mizuho Markets Americas dramatically reduced its INTC holdings by 99% during Q1, liquidating 841,355 shares from its 850,000 position, retaining merely 8,645 shares valued at approximately $382,000. Meanwhile, other institutional investors expanded their positions, including iA Global Asset Management which increased its stake by 17% in Q4.
INTC shares have gained 172% in 2026 year-to-date, though they’ve retreated substantially from the June 22 all-time closing record of $140.94 ā currently down roughly 29% from that summit. The stock’s 52-week trading range spans from $18.97 to $142.35.
Wall Street analysts project full-year 2026 earnings per share of $0.65 for Intel.
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