Stock Markets July 24, 2026 05:52 AM

Intel Shares Jump as Company Posts Best Quarterly Revenue in Over a Decade

Data Center and AI demand fuels a 25% revenue gain and prompts a higher capex outlook

By Sofia Navarro
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Intel shares climbed nearly 6% in early trading after the chipmaker reported second-quarter 2026 revenue of $16.13 billion, a 25.4% year-over-year increase, and adjusted EPS of $0.42. The results exceeded consensus by a wide margin, driven by a 59% revenue surge in the Data Center and AI segment and prompting management to raise full-year capital spending plans above $20 billion.

Intel Shares Jump as Company Posts Best Quarterly Revenue in Over a Decade
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Key Points

  • Intel reported Q2 2026 revenue of $16.13 billion, up 25.4% year-over-year, and adjusted EPS of $0.42, both about double analyst consensus.
  • The Data Center and AI segment led growth with $6.3 billion in revenue, a 59% year-over-year increase, driven by enterprise demand for agentic AI workloads.
  • Management raised full-year capex guidance to over $20 billion, disclosed 10 long-term supply agreements, and provided Q3 guidance above Street estimates.

Intel Corporation stock opened sharply higher in pre-market trading after the company released quarterly results that significantly outpaced Wall Street expectations. For the second quarter of 2026, Intel reported revenue of $16.13 billion, a 25.4% increase from the prior year, and adjusted earnings per share of $0.42. Both figures were roughly double analyst consensus estimates of about $14.4 billion in revenue and $0.21 in EPS.

CEO Lip-Bu Tan characterized the quarter as the firm's "strongest revenue growth in more than fifteen years," attributing the performance to what he called "unprecedented demand for compute" tied to the ongoing artificial intelligence wave. The most pronounced contribution came from Intel's Data Center and AI business, which generated $6.3 billion in revenue, a 59% year-over-year rise as enterprise uptake of agentic AI workloads increased demand for the company's server central processing units.

Management signaled confidence in the durability of that demand by increasing the company’s full-year capital expenditure guidance. Intel raised its 2026 capex forecast to more than $20 billion from a previously announced $18 billion target. The company also disclosed that it had entered into 10 long-term supply agreements with customers, reflecting commitments intended to support sustained output and customer relationships.

On the earnings call, CFO David Zinsner emphasized the supply-demand dynamic, noting that data center customers are ordering more product than Intel can currently produce, highlighting a supply-constrained environment. That comment underscored management’s view that demand, rather than weakness in orders, is the central consideration for near-term capacity planning.

Looking ahead, Intel provided third-quarter guidance of $15.8 billion to $16.8 billion in revenue and $0.38 in adjusted EPS. Those targets were above the Street’s consensus figures of $15.1 billion in revenue and $0.27 in adjusted EPS, offering investors a forward outlook that reinforced the strength of the current demand environment.

The quarterly beat and uplifted guidance reverberated across the semiconductor sector, bolstering shares of peers in after-hours trading. The results were widely taken as confirmation of a broader AI-driven spending cycle in infrastructure, with companies such as AMD and Arm trading higher following Intel’s report. Nonetheless, some of the pre-market enthusiasm was offset by a sharp overnight selloff in South Korean chip stocks, which introduced modest headwinds for the U.S. chip complex as it opened.

The broader U.S. equity market provided a mildly supportive backdrop on the morning of the release, with the S&P 500 up 0.3%, the Dow Jones Industrial Average up 0.5%, and the Nasdaq up 0.3%. Against that environment, Intel shares reached $106.16 in pre-market trading, reflecting a near 6.0% gain ahead of the regular session.


Taken together, the combination of a sizable revenue beat, adjusted earnings that roughly doubled expectations, a bullish near-term outlook, and management commentary pointing to supply constraints rather than weakening demand gave investors a clear rationale to bid the stock higher as markets prepared to open.

Risks

  • Pre-market gains were partially offset by a sharp overnight selloff in South Korean chip stocks, which could create headwinds for U.S. semiconductor equities.
  • The company described a supply-constrained environment, indicating that production capacity limits could constrain revenue growth if demand continues to outstrip supply.
  • Forward guidance, while above consensus, still exposes the stock to downside if quarterly execution or demand trends deviate from the outlook.

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