Intel Q2 revenue jumps 25%, fastest growth since 2011
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- Intel reported Q2 adjusted EPS of 42¢ on $16.1 billion in revenue, beating LSEG consensus estimates of 21¢ and $14.42 billion, respectively
- Intel's 25% year-over-year revenue growth was the fastest quarterly expansion since 2011, with data center revenue soaring 59% to $6.3 billion while client computing revenue rose 13% to $8.9 billion
- Intel issued Q3 guidance for adjusted EPS of 38¢ on revenue between $15.8 billion and $16.8 billion, ahead of analyst expectations of 27¢ EPS on $15.1 billion in revenue
- Intel has secured 10 long-term server CPU agreements with customers, and CFO David Zinsner told analysts the company is supply-constrained, with data center demand outstripping production capacity
- Intel's gross margin recovered to 42% from just 2.5% in the year-ago period, driven by scale benefits, higher-margin product mix, and improved pricing
- Intel's foundry unit posted $5.8 billion in sales, up 31% annually, but its first named external customer under CEO Lip-Bu Tan — Fortinet — is using older manufacturing technology for security chips, not the cutting-edge 14A node
- Intel shares climbed about 4% in extended trading, rebounding from a 28% drop in July, and remain up more than 170% year-to-date in 2026 on top of last year's 84% gain
Why it matters: Intel's supply-constrained data center business and gross margin leap from 2.5% to 42% show the chipmaker is converting AI compute demand into real earnings power, not just headline optimism. But with no marquee foundry customer on its leading-edge 14A process yet, Intel's multi-year bet on becoming a contract manufacturer for others remains unvalidated even as the CPU franchise accelerates.
