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Intel beats Q2 revenue and earnings expectations, posts positive free cash flow
Intel reported Q2 revenue up 25.4% year over year, and after excluding a one-time Ireland plant payment, free cash flow turned positive.
Intel exceeded analysts' expectations for Q2 revenue and non-GAAP earnings on July 23, according to Yahoo Finance. The company also posted positive free cash flow after adjusting for a one-time payment related to its Ireland fabrication plant, which supported an argument that the stock remains undervalued.
Intel's Q2 revenue rose 25.4% year over year, and was 11.6% higher than analysts' expectations, the outlet said. It described strength across product lines, especially Foundry production and data center products, tied to demand for chips used in AI-related applications.
On the earnings line, non-GAAP earnings were up more than 100% to 42 cents per share, compared with analysts' forecast of 40 cents, Yahoo Finance added. The outlet cited Q2 free cash flow of $4.45 billion, which it said equated to 27.59% of Q2 revenue, and noted that Intel's trailing 12-month free cash flow margin had turned positive at about 4.96%.
Looking ahead, Intel projected 38 cents per share for Q3, higher than last year's 23 cents, the outlet reported. Analysts raised their 2027 revenue forecast to $70 billion from $66.17 billion, and Yahoo Finance said continued positive cash flow could support a higher stock price path.