Intel reported better-than-expected second-quarter results on Thursday, achieving its fastest revenue growth for any quarter since 2011 and issuing earnings guidance that exceeded expectations. The stock gained 11% in extended trading.
Here’s Intel’s performance against LSEG consensus estimates:
- Earnings per share: $0.42 (adjusted), versus $0.21 expected
- Revenue: $16.1B, versus $14.42B expected
Despite a recent decline, Intel has surged nearly 170% this year, building on a 84% rise in 2024 when the U.S. government acquired a 10% stake to support domestic chip production. Prior to this rebound, the stock had fallen 28% in July.
The artificial intelligence infrastructure surge is directly driving sales of Intel’s server processors. The company reports 25% revenue growth—the fastest since Q3 2011—and attributes momentum to its data center business.
“AI is fueling historic demand for computing power,” CEO Lip-Bu Tan stated. “Intel remains strategically positioned to capture lasting growth in our CPU offerings.”
For the upcoming quarter, Intel forecasts adjusted earnings of $0.38 per share on revenue ranging from $15.8B to $16.8B. Analysts had projected $15.1B revenue and $0.27 EPS per LSEG data.
Intel CEO Lip-Bu Tan participated in the annual Computex trade show in Taipei, Taiwan, on June 2, 2026.
Tsai Hsin-han | Reuters
Additionally, Intel is initiating long-term customer agreements for server CPUs, including fixed pricing and volume-focused contracts.
It’s a strategy increasingly adopted in memory markets as vendors seek to maintain pricing power amid AI market fluctuations. Intel reports securing 10 such agreements, with Zinsner noting supply constraints as data center clients exceed current production capacity.
Revenue in Intel’s client computing division—responsible for PC chips—increased 13% to $8.9B. While this remains its largest segment, the strongest growth comes from data centers, where revenue expanded 59% to $6.3B. Intel expects flat PC sales in Q3 due to memory supply issues.
Intel is accelerating capital investments, planning a “meaningful increase” next year as it shifts aggressively toward producing chips for external clients. CFO David Zinsner mentioned to CNBC’s Kristina Partsinevelos that Intel’s latest manufacturing process, 14A, is progressing ahead of schedule relative to prior technologies. Intel’s foundry division generated $5.8B in sales, a 31% year-over-year increase.
Notably, Intel did not announce major foundry clients during the report, as investors and potential customers maintain heightened anticipation. The company primarily self-consumes its chips.
Intel’s foundry recently added Fortinet as its first named customer under Tan, using older technology to produce security chips.
The company’s gross margin rebounded to 42%, from just 2.5% year-ago, attributed to improved scale efficiencies, higher-margin chip sales, and price adjustments.
