Intel Corporation saw its shares jump in after-hours trading following quarterly results that outpaced analyst forecasts across revenue, earnings and margins. The chipmaker reported second-quarter revenue of $16.13 billion, a 25.4% increase year-over-year, compared with a consensus expectation near $14.42 billion. Adjusted earnings per share were $0.42, double the roughly $0.21 analysts had forecast, and adjusted gross margin reached 41.8%, topping the circa 38.8% estimate.
The most notable contributor to the beat was Intel’s Data Center and AI business. That segment delivered revenue of $6.3 billion, a 59% rise versus the prior year, reflecting elevated demand for server CPUs tied to the expansion of AI infrastructure. Management said the company has signed 10 long-term supply agreements with data center customers and characterized the business as currently supply-constrained, which the company presented as evidence of strong forward demand.
Alongside the quarterly results, Intel raised its full-year 2026 capital expenditure outlook to $20 billion and provided third-quarter revenue guidance of $15.8 billion to $16.8 billion, a range comfortably above the $15.10 billion consensus. The company also issued adjusted EPS guidance for the third quarter of $0.38 versus an expected $0.27. CEO Lip-Bu Tan characterized the quarter as Intel’s strongest revenue growth in more than fifteen years, attributing the performance to increased speed and a sharper focus on customer needs.
The earnings surprise came after a difficult run for the stock. Intel shares had dropped about 28% through July ahead of the report, reflecting investor rotation away from prior semiconductor winners and wider pressure across the chip sector. Major U.S. equity benchmarks provided little lift on the day; the S&P 500 was essentially flat while the Nasdaq was only modestly higher, indicating that the sharp after-hours move was predominantly driven by company-specific developments.
Analysts had been adjusting their outlooks in the days leading up to the release, with several firms increasing price targets, including KeyBanc to $155 and Susquehanna to $115, reflecting growing optimism tied to AI-driven CPU demand. Market observers highlighted that the combination of a substantial earnings beat, a forward outlook well above consensus, accelerating data center revenue and a boost to capital spending provided investors with confirmation that Intel’s AI-era momentum may be materializing.
Taken together, the results and forward-looking metrics prompted a nearly 9.9% jump in Intel stock during after-hours trading. The company’s revised capital expenditure plan and higher guidance for the upcoming quarter and fiscal year were central to investor reaction, as was the disclosure of long-term customer commitments that management said reflect constrained supply against robust demand.
Analyst takeaways and market context
From a market-structure perspective, the quarter underscores a pronounced revenue lift in data center-related products and a willingness by management to increase capital deployment. Those elements were presented by the company as drivers of the current acceleration in revenue growth.
Investors and market participants will likely monitor execution against the raised capex plan, fulfillment against the disclosed supply agreements and whether the company can maintain margins as it scales data center production.