Intel (INTC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $16.1 billion, up 25–26% year-over-year, marking the strongest growth in over fifteen years, driven by robust AI demand, higher ASPs, and premium product mix in client and server segments.

• Non-GAAP EPS was $0.42, while GAAP EPS was $(2.16), reflecting significant adjustments and one-time items including a $12.5B loss on Escrowed Shares.

• Gross profit increased 84% YoY to $6.5B, with gross margin improving to 40.4% (GAAP) and 41.8% (non-GAAP).

• Strong demand, improved execution, and higher factory yields contributed to exceeding financial guidance for the seventh consecutive quarter.

• Major events included the $14.2B repurchase of the 49% minority interest in Ireland SCIP and a $3.9B goodwill impairment charge for Mobileye.

Financial highlights

• Q2 2026 revenue: $16.1B, up $1.8B above guidance and 25–26% YoY; YTD 2026: $29.7B, up 16% YoY.

• Non-GAAP gross margin: 41.8% (up 12.1–12.9 points YoY); GAAP gross margin: 40.4%.

• Non-GAAP EPS: $0.42 (up $0.52 YoY); GAAP EPS: $(2.16).

• Operating income: $1.8B (GAAP), reversing a $3.2B loss YoY; non-GAAP operating income: $2.8B.

• Operating cash flow was $7.0B; adjusted free cash flow was $(8.4)B due to capital investments.

Outlook and guidance

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

• Q3 non-GAAP gross margin forecasted at 42%, GAAP at 41%; non-GAAP EPS guidance at $0.38, GAAP EPS at $0.31.

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

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

• Industry-wide supply constraints are expected to persist into next year, limiting ability to fully meet demand.