Intel CEO Lip-Bu Tan attends the annual Computex exhibition in Taipei, Taiwan, June 2, 2026.
Tsai Hsin-han | Reuters
Intel reported better-than-expected second-quarter results Thursday, marking the fastest revenue growth of any quarter since 2011 and issuing better-than-expected guidance. Shares jumped 11% in extended trading.
Here’s how the chipmaker fared compared to LSEG consensus estimates
- Earnings per share: 42 cents adjusted, versus 21 cents expected.
- Income: $16.1 billion vs. expected $14.42 billion.
Intel shares were up more than 170% in 2026 as of Thursday’s close after soaring 84% last year when the U.S. government acquired a 10% stake in the company as part of efforts to support U.S. chip production. However, the stock has suffered a slump recently, falling 28% in July.
Despite the recent slowdown, the company is buoyed by a boom in artificial intelligence infrastructure that is fueling sales of its server processors. Intel’s 25% revenue growth was the fastest of any quarter since the third quarter of 2011.
“AI is driving unprecedented demand for computing,” CEO Lip-Bu Tan said in a statement. “As we continue to execute, Intel is well positioned to drive sustainable growth across our processor franchise.”
For the current quarter, Intel said it expects adjusted earnings per share of 38 cents on revenue of $15.8 billion to $16.8 billion. Analysts had expected revenue of $15.1 billion and earnings per share of 27 cents, according to LSEG.
Intel also said it is starting to enter into long-term agreements with customers for its server processors, some with a fixed price and others based on chip production volumes.
This move is becoming common, especially in the memory space, as vendors try to maintain current high prices and market power in case the AI market changes. Intel said it had reached 10 long-term agreements, and Zinsner said the company is constrained by supply because data center customers demand more than it can produce.
Revenue at the company’s client computing division, which makes PC chips, rose 13% to $8.9 billion. It is still Intel’s largest unit, but strong growth was led by its data center business, where revenue rose 59% to $6.3 billion. Intel said it expects flat-PC sales in the third quarter due to memory shortages.
Intel is increasing its capital spending, targeting “significant growth” next year as it aggressively tries to transform itself into a chip maker for other companies. CFO David Zinsner told CNBC’s Christina Parzinevelos that the company’s newest manufacturing process, called 14A, outperforms older technologies that were at the same stage in the cycle. Intel said its foundry had sales of $5.8 billion, up 31% year over year.
However, Intel has not named a major customer for its plant as investors and potential customers continue to wait. It mainly produces its own chips. Earlier this week, Intel foundry brought on Fortinet as its first named client under Tan, but it uses older manufacturing technology to make security chips.
Intel’s gross margin also rebounded to 42% from 2.5% in the year-ago period, which the company attributed to advantages of scale and higher revenue, as well as selling chips at higher margins and prices.
LOOK: Bernstein’s Stacy Rasgon on Intel
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