Intel (INTC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $16.1 billion, up 25% year-over-year, marking the seventh consecutive quarter of outperformance and the strongest revenue growth in over fifteen years.

• Non-GAAP EPS was $0.42, more than double guidance, while GAAP EPS was $(2.16) due to significant one-time items.

• Strong AI-driven demand, robust execution, and operational discipline drove results, with AI businesses growing over 70% YoY and contributing about 70% of total revenue.

• Strategic collaborations with Google Cloud, SambaNova, and Fortinet accelerated AI adoption and product innovation.

• Leadership team strengthened and cultural transformation ongoing, focusing on efficiency and customer proximity.

Financial highlights

• Q2 2026 revenue was $16.1 billion, $1.8 billion above guidance, up 25–26% YoY.

• Non-GAAP gross margin was 41.8%, up 12.1–12.9 points YoY and 280 basis points above guidance; GAAP gross margin was 40.4%.

• Non-GAAP EPS was $0.42, more than double guidance; GAAP EPS was $(2.16) due to a $12.5B loss on Escrowed Shares.

• Operating cash flow was $7.0 billion; cash and short-term investments totaled $29.7–$30 billion.

• Adjusted free cash flow for Q2 2026 was $(8.4) billion, reflecting high capital expenditures.

Outlook and guidance

• Q3 2026 revenue guidance: $15.8–$16.8 billion; midpoint $16.3 billion.

• Q3 non-GAAP gross margin forecasted at 42%, tax rate 11%, and EPS of $0.38.

• CapEx for 2026 expected to exceed $20 billion, with 2027 CapEx significantly higher, mostly in the U.S.

• Server CPU demand outlook improved, with strong double-digit unit growth forecast for this year and next; PC market expected to be sub-seasonal and down low double digits percent for 2026.

• R&D and MG&A expenses expected to decrease in 2026 due to restructuring and cost-reduction measures.