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Intel Q2 revenue and EPS beat estimates as data center demand grows
Intel reported revenue of $16.1 billion, up 25% year over year, and said its data center and AI segment revenue rose 59% to $6.3 billion.
Intel’s Q2 2026 earnings showed a turnaround in key fundamentals after a steep sell-off in the semiconductor sector, with investors focused on whether AI infrastructure spending can justify chip stock valuations. According to MarketBeat Ratings, Intel’s results offered a clearer answer than expected.
The company reported revenue of $16.1 billion, up 25% year over year and about $1.8 billion above the midpoint of guidance. Adjusted EPS was 42 cents, double the 21 cents analysts expected, while non-GAAP gross margin expanded to 41.8%, nearly 280 basis points above management’s own guide.
In segment detail, Intel’s Data Center and AI Group revenue jumped 59% year over year to $6.3 billion, with management saying AI-linked businesses grew more than 70% year over year and now account for roughly 70% of total revenue. The CFO, David Zinsner, said server CPU demand has improved since the prior quarter, and Intel disclosed 10 long-term supply agreements with customers.
Despite the upside, MarketBeat Ratings highlighted that Foundry remains a reason for caution. Intel said demand is still outstripping available supply and cited industry-wide shortages of substrates and memory expected to persist into next year, while the stock moved up as much as 12% to 13% in after-hours trading.