Intel's Q2 2026 earnings show revenue exceeding $16 billion, with AI demand fueling the quickest growth since 2011.

      **TL;DR** Intel's Q2 revenue exceeded $16 billion, achieving 25% growth—the fastest rate since 2011—but shares fell despite surpassing earnings expectations.

      In the second quarter of 2026, Intel reported revenue of over $16 billion, marking a 25% increase from the previous year and the fastest growth since late 2011. Adjusted earnings per share reached 42 cents, doubling the 21-cent estimate from analysts. While shares initially rose following the announcement, they reversed direction during after-hours trading, exacerbating a 28% decline in July, although the stock is still up more than 170% this year.

      The data center and AI division was a key contributor to these results, with revenue soaring 59% year over year to over $6 billion. Client computing, which covers Intel’s PC chip sector, increased by 13% to nearly $9 billion, while the foundry segment generated nearly $6 billion, up 31%. Gross margin improved to 42%, recovering from under 3% a year ago, driven by higher demand and the cost management initiatives implemented by CEO Lip-Bu Tan since March 2025.

      For the third quarter, Intel projects revenue between nearly $16 billion and nearly $17 billion, significantly above the analyst consensus of just over $15 billion, with adjusted earnings per share of 38 cents versus a 27-cent estimate. The company disclosed it had signed 10 long-term foundry customer agreements and mentioned being supply-constrained in its data center segment, a situation it hasn't encountered in years. Earlier this month, Fortinet became Intel’s first publicly named foundry customer under Tan, although the agreement involves older manufacturing technology rather than the cutting-edge nodes that are crucial for Intel's sales strategy.

      These results come as the US government holds about 10% of Intel, having acquired nearly $9 billion in shares at slightly over $20 each through a Chips Act deal in August 2025. This stake has gained value on paper, but July’s market downturn has erased billions in value despite the business's upward momentum. Tan informed analysts that "AI is driving unprecedented demand for compute," and noted that Intel’s advanced 14A manufacturing process is progressing ahead of schedule.

      Intel has exceeded expectations for the seventh consecutive quarter, a streak that began as part of Tan’s turnaround strategy; however, market responses indicate that investors are seeking concrete evidence of the foundry business securing major clients for its most advanced chips. The company cautioned that stagnant PC sales in the third quarter, caused by a memory shortage, could negatively impact client computing revenue. It remains uncertain whether Intel can transform its manufacturing ambitions into customer acquisitions that validate its significant stock ascent, a question that Tan has yet to definitively address.