Intel (NASDAQ:INTC) Posts 25% Revenue Jump in Q2 2026, Adjusted EPS Doubles Consensus

Intel Corporation (NASDAQ: INTC) reported Q2 2026 revenue of $16.1 billion, up 24.8% year-over-year, alongside adjusted EPS of $0.42 against a consensus estimate of $0.22, a 91% beat. The results represent Intel's fastest revenue growth in more than 15 years, according to the company's press release issued July 23, 2026.

Q2 2026 Results

• Revenue: $16.1 billion, up 24.8% year-over-year from $12.9 billion in Q2 2025.
• Adjusted EPS: $0.42, versus a consensus estimate of $0.22 and a prior-year adjusted EPS of $(0.10).
• GAAP EPS: $(2.16), versus $(0.67) in Q2 2025, reflecting an $11.0 billion GAAP net loss driven by a mark-to-market charge tied to government escrowed shares.
• GAAP gross margin: 40.4%, up 12.9 percentage points year-over-year from 27.5%.
• Adjusted gross margin: 41.8%, up 12.1 percentage points from 29.7% in Q2 2025.
• Operating cash flow: $7.0 billion generated in the quarter.
• R&D and MG&A expenses (GAAP): $4.5 billion, down 6% year-over-year.

What Drove the Results

Adjusted EPS of $0.42 beat the $0.22 consensus by 91%, and GAAP operating margin expanded 35.8 percentage points to 11.1%, from a negative 24.7% in Q2 2025. Revenue growth was broad-based: the Data Center and AI segment contributed $6.3 billion, up 59% year-over-year, while the Client Computing and Physical AI Group generated $8.9 billion, up 13%. Intel Foundry posted revenue of $5.8 billion, up 31% year-over-year.

The significant improvement in profitability reflects gross margin expansion of approximately 12 percentage points alongside a 6% to 8% reduction in R&D and selling, general and administrative spending, producing substantial operating leverage. The GAAP net loss of $11.0 billion, resulting in GAAP EPS of $(2.16), diverges sharply from the adjusted net income of $2.2 billion. The primary driver of that gap is an $11.0 billion mark-to-market charge tied to government escrowed shares, not operational performance.

CEO Lip-Bu Tan attributed the results to increased speed, accountability, and customer focus, adding that Intel's Q2 results represent its strongest revenue growth in more than 15 years. CFO Dave Zinsner cited volume upside from higher factory yields and improved cycle times as additional contributors.

Product and Foundry Highlights

On the product side, Intel launched Xeon 6+, its next-generation data center CPU built on the Intel 18A process node. More than 130 customers are adopting or testing Core Ultra Series 3 and Core Series 3 processors for edge AI and robotics. Intel Foundry entered high-volume manufacturing for a subset of Core Ultra Series 3 processors using ASML's High-NA EUV technology, and Intel 18A-P entered risk production on schedule. Intel also announced a 5 billion euro investment to expand manufacturing capacity and increase production of Xeon 6 and next-generation Xeon processors built on Intel 3.

Q3 2026 Guidance

For Q3 2026, Intel forecasts revenue of $15.8 billion to $16.8 billion. GAAP EPS guidance is $0.31 and adjusted EPS guidance is $0.38. GAAP gross margin is expected at 41.0% and adjusted gross margin at 42.0%. Intel indicated it is meaningfully increasing investments in equipment, clean room space, and substrates to support anticipated growth through 2026 and 2027.

Wall Street View

Intel shares fell -2.33% on Thursday, July 23, 2026, while the S&P 500 declined -1.23% on the same session, as a broad technology selloff weighed on the market ahead of the after-hours earnings release. The after-hours reaction was positive, per reports, with the semiconductor sector also seeing gains in AMD and Arm Holdings following the print.

Investor Takeaway

The Q2 report demonstrates that Intel's turnaround in operating profitability is gaining traction: adjusted operating margin reached 17.2%, up 21.1 percentage points from negative 3.9% a year ago, while $7.0 billion in operating cash flow signals genuine earnings quality beyond the EPS headline. The key forward question is whether Intel can sustain gross margins at or above the 41% to 42% range guided for Q3 while simultaneously accelerating capital investment in manufacturing capacity, a balance that will define the credibility of the multi-year foundry and AI compute growth story.