Intel reported better-than-expected second-quarter outcomes on Thursday, notching its quickest income progress price for any quarter since 2011 and issuing steering that topped expectations. The inventory rose about 4% in prolonged buying and selling.
This is how the chipmaker did versus LSEG consensus estimates
- Earnings per share: 42 cents, adjusted, versus 21 cents anticipated
- Income: $16.1 billion, versus $14.42 billion anticipated
Intel shares are up over 170% to this point in 2026 as of Thursday’s shut after hovering 84% final yr, when the U.S. authorities took a ten% stake within the firm as a part of an effort to help U.S. chip manufacturing. Nevertheless, the inventory has been in a hunch extra just lately, dropping 28% in July.
Regardless of the current downturn, the corporate is getting a enhance from the unreal intelligence infrastructure growth, which helps gross sales of its server processors. Intel’s 25% income progress was the quickest for any interval in virtually 15 years.
“AI is driving unprecedented demand for compute,” CEO Lip-Bu Tan mentioned within the assertion. “As we proceed to execute, Intel is well-positioned to seize sustainable progress throughout our CPU franchise.”
For the present quarter, Intel mentioned it expects adjusted earnings per share of 38 cents on income between $15.8 billion and $16.8 billion. Analysts had been anticipating income of $15.1 billion and EPS of 27 cents, based on LSEG.
Intel CEO Lip-Bu Tan attends the annual Computex commerce present in Taipei, Taiwan, June 2, 2026.
Tsai Hsin-han | Reuters
Intel additionally mentioned it is beginning to craft long-term agreements with clients for its server CPUs, some with pricing locked in and others centered on chip quantity.
It is a transfer that is turning into frequent, notably in reminiscence, as distributors attempt to protect present excessive pricing and market energy in case the AI market turns. Intel mentioned it had reached 10 long-term agreements, and CFO David Zinsner mentioned the corporate is provide constrained, with knowledge middle clients demanding greater than it will probably produce.
“Clients proceed to sign a robust and sustainable spending surroundings,” Zinsner mentioned on an earnings name with analysts.
Income within the firm’s shopper computing group, which makes chips for PCs, rose 13% to $8.9 billion. It is nonetheless Intel’s greatest unit, however the strong progress is coming from its knowledge middle enterprise, the place income rose 59% to $6.3 billion. Intel mentioned it expects flat PC gross sales within the third quarter due to the reminiscence scarcity.
Intel is boosting its capital expenditures, focusing on a “significant enhance” subsequent yr, because it aggressively tries to morph right into a producer of chips for different firms. Zinsner advised CNBC’s Kristina Partsinevelos that the corporate’s newest manufacturing course of, referred to as 14A, is forward of the place older applied sciences had been on the similar level within the cycle. Intel mentioned its foundry reported $5.8 billion in gross sales, up 31% on an annual foundation.
“I did wish to give traders a minimum of a line of sight to count on that the quantity will likely be up,” Zinsner mentioned on the earnings name. He mentioned many of the spending could be for manufacturing unit tooling.
Nonetheless, Intel didn’t reveal a significant buyer for its foundry, as traders and potential clients hold ready. It primarily manufactures its personal chips. Intel’s foundry landed Fortinet as its first named buyer underneath Tan earlier this week, but it surely’s utilizing an older manufacturing expertise to make safety chips.
Intel’s gross margin additionally recovered to 42%, up from 2.5% within the year-ago interval, which the corporate attributed to advantages of scale with extra income, in addition to promoting chips with greater margins and pricing.
