Intel reports strongest revenue growth in over 15 years driven by data center and foundry momentum

Intel delivered second-quarter revenue of $16.1 billion, up 25% year-over-year and significantly exceeding Wall Street expectations for $14.4 billion. The gain was fueled by a surge in AI infrastructure spending, with data center and AI revenue jumping 59% to $6.3 billion and foundry business rising 31% to $5.8 billion. Operating performance improved sharply: non-GAAP gross margin expanded to 41.8% from 29.7% a year earlier, driven by higher-margin product mix and improved manufacturing execution. However, GAAP net loss widened to $11.0 billion, or $(2.16) per share, primarily due to $12.5 billion in non-operating mark-to-market losses on Escrowed Shares tied to a government deal; stripping out such one-time items, the company reported non-GAAP earnings of $0.42 per share. CEO Lip-Bu Tan raised the full-year capital spending plan to $20 billion from $18 billion to support expected growth, signaling confidence in sustained demand. The third-quarter guidance of $15.8 billion to $16.8 billion in revenue and non-GAAP EPS of $0.38 suggests the company expects momentum to persist while facing near-term execution challenges on supply constraints.

1. Q2 revenue was $16.1 billion, up 25% year-over-year; Wall Street had expected $14.4 billion.
2. Data center and AI revenue jumped 59% to $6.3 billion in the quarter.
3. Intel Foundry Services revenue rose 31% to $5.8 billion.
4. Non-GAAP gross margin expanded to 41.8% from 29.7% year-over-year.
5. GAAP earnings per share was $(2.16), reflecting an $11.0 billion net loss driven largely by $12.5 billion in mark-to-market losses on Escrowed Shares.
6. Non-GAAP earnings per share was $0.42.
7. CEO Lip-Bu Tan raised 2026 capital spending plan to $20 billion from $18 billion.
8. Q3 2026 revenue guidance is $15.8 billion to $16.8 billion; non-GAAP EPS guidance is $0.38.