Intel Revenue Rises 25% to $16.1 Billion in Second Quarter of 2026
Key Facts
Intel reported on July 23, 2026, that revenue reached $16.1 billion in the second quarter, up 25% from $12.9 billion in the same period a year earlier. Revenue in the data center and AI segment rose to $6.3 billion, up 59% year over year, according to the company’s filing with the U.S. Securities and Exchange Commission. In the personal computing and physical AI segment, revenue was $8.9 billion, up 13%. The company said demand exceeded available supply during the quarter amid internal production constraints and industrywide shortages. The results show growth broadening across the company’s businesses, alongside the role of server prices and mix in much of the data center segment’s increase.
Intel said server revenue rose $2.0 billion from the second quarter of 2025, as average selling prices increased 48% and sales volume grew 9%. The company linked the volume growth mainly to increased demand from hyperscale cloud companies. It said most of the rise in selling prices resulted from a higher share of premium products in the sales mix. Demand-related pricing measures contributed to a lesser extent and partly offset higher input costs. The segment’s improvement was therefore driven primarily by sales of higher-priced servers and a more expensive mix, alongside an increase in units sold.
Gross margin under U.S. generally accepted accounting principles improved to 40.4% from 27.5% a year earlier, while the company’s non-GAAP margin rose to 41.8% from 29.7%. But net results differed sharply depending on the measurement basis: Intel recorded a GAAP net loss of $11.0 billion, or $2.16 per share, while non-GAAP net income was $2.2 billion, with earnings per share of $0.42. The company said consolidated gross profit increased 84% year over year, supported by a $1.5 billion increase in product profit and a $1.5 billion decrease in period expenses. The expense reduction included the absence of a $797 million charge recorded in the second quarter of 2025 from asset impairments and accelerated depreciation. These items place margin improvement alongside a large accounting loss, with a clear difference between the two measures.
Intel said demand in the quarter exceeded what it could supply because of capacity constraints at its factories, as well as supply constraints affecting the industry. It forecast continued shortages of substrates, memory and other key components into the following year, which could limit its ability to fully meet customer demand. On manufacturing, the 18A-P technology entered pilot production in June 2026, according to the company, which did not describe it as having entered full production. The development comes as Intel said factory and component supply constraints are limiting available supply. The company also raised its 2026 capital expenditure estimate to $20 billion from $18 billion, amid demand for data center processors tied to the buildout of AI infrastructure.
After the results and next-quarter outlook were announced on July 23, Intel shares rose 5.2% in after-hours trading, according to Reuters. The stock ended the October 28 session at $95.53, according to EL7 data. The company forecast third-quarter 2026 revenue of between $15.8 billion and $16.8 billion, and earnings per share of $0.31 under GAAP and $0.38 on a non-GAAP basis. These forecasts set the company’s next time frame for tracking revenue and profitability after second-quarter growth. At the same time, it said shortages of key components could continue into the following year, keeping supply constraints among the operating conditions it faces.