Intel's Q 2 revenue increased by 25% year-on-year, GAAP turned a profit and non-GAAP performance exceeded expectations, capital expenditures increased
Total revenue in the second quarter was US$16.128 billion, a year-on-year increase of 25%, the highest growth rate in the past fifteen years, mainly driven by factors such as strong computing demand, improved product delivery efficiency, and improved manufacturing yields. Quarterly GAAP operating profit was US$1.796 billion, compared with a loss of US$3.176 billion in the same period last year, with an operating profit margin of 11.1%; non-GAAP operating profit was US$2.770 billion, with a non-GAAP operating profit margin of 17.2%, which was positively driven by lower operating expenses such as R&D and MG&A (a year-on-year decrease of 6%). At the end of the quarter, cash and cash equivalents and short-term investments totaled US$29.727 billion, a sharp decrease from the previous quarter. Due to capital investments such as equipment and clean room construction during the quarter, adjusted free cash flow was -US$8.419 billion. Customer computing and physical AI business (CCPG) revenue was US$8.877 billion, a year-on-year increase of 13%; data center and artificial intelligence (DCAI) revenue was US$6.262 billion, a 59% increase; Intel Foundry revenue was US$5.765 billion, an increase of 31%. GAAP net loss attributable to the parent company was US$11.033 billion (dragred by changes in non-operating items such as the mark-to-market value of managed stocks); non-GAAP net profit attributable to the parent company was US$2.197 billion; GAAP diluted loss per share was US$2.16, and non-GAAP diluted earnings per share was US$0.42. Data center and AI: Released the next-generation data center CPU based on Xeon 6+, the first server-class product based on the Intel 18A process; jointly launched SambaNova and Foxconn to launch a rack-level AI infrastructure for agent workloads. Physical AI and edge: More than 130 customers adopt or test Intel Core Ultra Series 3 and Core Series 3 processors; the open source OpenVINO Physical AI framework is launched. Foundry and manufacturing: Intel 18A-P enters the risk production stage; uses ASML EXE High NA EUV technology to achieve high-volume production of Panther Lake (Core Ultra Series 3 subset); announces a 5 billion euro investment to expand Xeon production capacity under the Intel 3 process. Network and handheld computers: Launched Intel Arc G series handheld processors; released Ethernet E835 product portfolio, covering 10GbE to 200GbE. Management and organization: Appointed Alex Katouzian to lead CCPG, Pushkar Ranade as CTO, and Seok-Hee Lee to lead advanced packaging. Deepen the multi-year strategic cooperation with Google Cloud. Revenue in the third quarter of 2026 is expected to be between US$15.8 billion and US$16.8 billion. The GAAP gross profit margin in the third quarter is expected to be approximately 41.0%, and the non-GAAP gross profit margin is expected to be approximately 42.0%. For the third quarter, GAAP diluted earnings per share are expected to be $0.31 and non-GAAP diluted earnings per share are expected to be $0.38. The company will continue to maintain a strong balance sheet and sufficient liquidity to support investments in equipment, clean rooms and substrates. In the long term, AI will continue to drive strong growth in computing demand, and the company will achieve sustainable growth through CPU architecture, ASICs, advanced packaging and foundry networks.