Intel (INTC) Stock Surges After Blowing Past Q2 Earnings Estimates

TLDR

• Intel reported Q2 EPS of $0.38 on revenue of $16.1 billion, beating estimates of $0.21 EPS and $14.43 billion revenue
• Q3 guidance of $15.8B–$16.8B topped the $15.06B Wall Street estimate
• Data center revenue hit $6.3 billion, ahead of the $5.54 billion estimate
• Intel stock has risen 178% year-to-date under CEO Lip-Bu Tan’s turnaround
• Google has placed an order with Intel Foundry to produce 3 million custom Tensor Processing Units

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Intel (INTC) stock jumped more than 7% in after-hours trading Thursday after the chip maker posted a strong second-quarter earnings beat and offered an upbeat outlook for Q3.

Intel Corp., INTC

Intel reported Q2 adjusted EPS of $0.38 on revenue of $16.1 billion. Wall Street had expected EPS of $0.21 on revenue of $14.43 billion. A year ago, Intel posted a loss of $0.10 per share on revenue of $12.9 billion.

Intel stock has climbed 178% since the start of 2026, though as of Thursday’s close it remained about 29% below its all-time closing high of $140.94, set on June 22.

INTEL $INTC Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $16.1B (Est. $14.50B) 🟢; +25% YoY
🔹 Adj. EPS: $0.42 (Est. $0.22) 🟢
🔹 Adj Gross Margin: 41.8% (Est. 39%) 🟢; +1,210bps YoY
🔹Raises FY26 Capex $20B (prior $18B)

Q3 Guide:
🔹 Revenue: $15.8B-$16.8B (Est. $15.2B) 🟢
🔹 Non-GAAP… pic.twitter.com/8rGtyx2ojI

— Wall St Engine (@wallstengine) July 23, 2026

Q3 guidance came in at revenue of $15.8 billion to $16.8 billion, well above the $15.06 billion analyst estimate. EPS guidance of $0.38 also beat the consensus of $0.27.

Data center revenue was $6.3 billion, topping the $5.54 billion estimate. Client computing revenue reached $8.9 billion, beating expectations of $7.99 billion.

Intel Foundry revenue for the quarter came in at $5.8 billion, up 31% year-over-year and ahead of 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.

CFO Dave Zinsner pointed to stronger factory yields and faster cycle times as key drivers of the beat. The company said it plans to “meaningfully increase” investments in equipment, clean room space, and substrates.

Strong CPU Demand Fuels Growth

AI agents are driving fresh demand for CPUs, as the technology relies on them to perform tasks like searching databases and generating documents. That’s given Intel’s core chip business a meaningful lift after years of GPU dominance.

Earlier this week, Intel confirmed layoffs within its Data Center Group as it restructures toward a more focused operation. The company said it is “aligning its organization to ensure it has the right roles and skills in place.”

Foundry Business Picks Up Steam

Intel’s foundry operation is gaining traction with major customers. According to The Information, Google placed an order for 3 million custom Tensor Processing Units to be made by Intel. Nvidia is also reportedly exploring Intel as a manufacturing option.

That comes as Taiwan Semiconductor Manufacturing (TSM) struggles to meet surging demand from Nvidia, AMD, and Apple. Intel stands to benefit as a secondary manufacturer.

On the client side, rising memory chip prices are pushing companies to cut lower-margin laptops and desktops from their lineups while raising prices on premium products.

Intel is a 2026 Barron’s stock pick, and the company has also received backing from the Trump administration and an investment from Nvidia.