Intel earnings Q2 2026: Stock jumps as AI lifts revenue growth

Intel earnings Q2 2026 gave investors a stronger-than-expected read on the chipmaker’s AI rebound. Shares rose 11% in extended trading Thursday after Intel beat Wall Street estimates and issued a current-quarter outlook above analyst forecasts.

The report lands at a key point for Intel, which is trying to regain momentum in advanced chips while building a foundry business, meaning a manufacturing arm that makes semiconductors for other companies. AI demand is helping the company’s server processor sales, giving investors a clearer reason to watch the turnaround beyond cost cuts and government support.

What did Intel report for Q2 2026?

Intel reported adjusted earnings per share of 42 cents, compared with the 21 cents analysts expected, according to LSEG consensus estimates. Adjusted earnings per share strips out certain items to make profit easier to compare across periods.

Revenue came in at $16.1 billion, ahead of the $14.42 billion expected by analysts, according to LSEG. Intel said revenue rose 25%, its fastest quarterly growth rate since the third quarter of 2011.

Chief Executive Lip-Bu Tan said in the company’s statement that AI is creating exceptional demand for computing power and that Intel is positioned to grow through its CPU business. A CPU, or central processing unit, is the main processor that handles general computing tasks in PCs and servers.

For the current quarter, Intel said it expects adjusted earnings per share of 38 cents and revenue between $15.8 billion and $16.8 billion. Analysts polled by LSEG had expected 27 cents in adjusted earnings per share and $15.1 billion in revenue.

Where is the growth coming from?

Intel’s client computing group, which sells chips for personal computers, remained its largest division. Revenue in that unit rose 13% to $8.9 billion.

The faster growth came from data centers, where Intel’s revenue rose 59% to $6.3 billion. Intel said it expects PC sales to be flat in the third quarter because of a memory shortage.

The company also said it has begun setting up long-term agreements with customers for server CPUs. Some agreements include set pricing, while others focus on chip volumes. Intel said it has reached 10 such agreements.

Chief Financial Officer David Zinsner told CNBC that Intel is supply constrained, with data center customers asking for more chips than the company can make.

What investors are watching next

Intel shares have gained more than 170% in 2026 through Thursday’s close, after rising 84% last year. CNBC reported that the U.S. government took a 10% stake in Intel last year as part of an effort to support domestic chip manufacturing. The stock had pulled back recently, falling 28% in July before the earnings release.

Intel is also increasing capital spending and expects a meaningful increase next year as it works to become a larger contract chip manufacturer. Zinsner told CNBC that Intel’s 14A manufacturing process is ahead of where older technologies were at the same stage.

The foundry unit reported $5.8 billion in sales, up 31% from a year earlier. Investors are still waiting for Intel to announce a major foundry customer for its newest manufacturing technology. Earlier this week, Intel named Fortinet as its first foundry customer under Tan, but that work uses an older process to make security chips.

Intel’s gross margin recovered to 42%, compared with 2.5% in the year-earlier period. The company attributed the improvement to higher revenue, higher-margin chip sales and pricing.

This story draws on original reporting from CNBC.