NEW YORK, August 1, 2026, 11:10 a.m. EDT
- Intel ended Friday at $90.20, a decline of 2.3% since July 24.
- Second-quarter revenue surpassed consensus by 11.9%. Adjusted earnings were twice what analysts anticipated.
- External foundry revenue reached $293 million, accounting for 5.1% of sales in the segment.
Intel closed its first complete week after reporting earnings at $90.20 per share. The stock declined 2.3%, as Nasdaq remained shut on Saturday.
The drop came after an earnings beat that was unusually widespread. This now puts investor focus on the quality of foundry operations rather than immediate demand.
The price trend highlights the rapid decline in optimism.
| Date | Marker | Close | Change from prior marker |
|---|---|---|---|
| July 23 | Close before results | $100.23 | — |
| July 24 | Close after results | $92.32 | -7.9% |
| July 31 | Most recent close | $90.20 | -2.3% |
Intel gained 5.2% in after-hours trading on July 23. The following session ended down 7.9% compared to the price before results were released.
The operating results outpaced the stock’s response.
| Q2 metric | Actual | Consensus estimate | Surprise |
|---|---|---|---|
| Revenue | $16.13 billion | $14.42 billion | +11.9% |
| Adjusted EPS | $0.42 | $0.21 | +100.0% |
| Adjusted gross margin | 41.8% | 38.8% | +3.0 points |
Revenue from Data Center and AI topped consensus by 16.6%. Client revenue came in 12.5% higher than expected, and foundry outperformed by 4.0%.
Intel Foundry reported a total of $5.77 billion, with the majority generated from internal sources. Revenue from external clients reached $293 million, accounting for 5.1% of total segment sales. According to Intel, the main contributor to external growth was Altera’s deconsolidation.
This means overall foundry revenue is not a reliable indicator of securing new customers.
| Operating segment | Q2 revenue | Year-on-year | Operating result | Margin |
|---|---|---|---|---|
| Client Computing | $8.88 billion | up 13% | $2.34 billion | 26% |
| Data Center and AI | $6.26 billion | up 59% | $2.47 billion | 40% |
| Intel Foundry | $5.77 billion | up 31% | -$2.09 billion | -36% |
Intel’s segment accounting shows that foundry losses made up 43% of its product operating profit. The loss decreased by $1.08 billion compared with the same period last year.
Intel states that 14A expansion will align with committed demand, which must feature significant external design wins.
Short-term outlook continues to be positive.
| Q3 metric | Intel guidance | Reference | Gap |
|---|---|---|---|
| Revenue | $15.8 billion-$16.8 billion | $15.1 billion consensus | Midpoint up 7.9% |
| Adjusted EPS | $0.38 | $0.27 consensus | Increase of 40.7% |
| Adjusted gross margin | 42.0% | 41.8% in Q2 | Rise of 0.2 points |
Chief Executive Lip-Bu Tan described Q2 as Intel’s “strongest revenue growth in more than fifteen years.” Data Center and AI revenue climbed 59%. Intel Corporation
Intel increased its planned capital expenditure for 2026 to $20 billion, up from $18 billion. Chief Financial Officer David Zinsner said he anticipates a “meaningful” increase in spending next year. Reuters
The improved forecast results in a greater funding requirement. June balance-sheet numbers remain unaudited.
| Funding measure | Latest or revised | Earlier level | Change |
|---|---|---|---|
| Cash and short-term assets | $29.73 billion | $37.42 billion | -20.6% |
| Total borrowings | $50.54 billion | $46.59 billion | +8.5% |
| 2026 capital investment outlook | $20.0 billion | $18.0 billion | +11.1% |
The drop in cash reflected a $14.2 billion buyout of an Ireland joint venture. Intel covered part of the purchase with a $6.5 billion term loan, which was later refinanced through senior notes.
Shay Boloor, chief market strategist at Futurum Group, said Intel needs to “improve foundry economics.” He stated that proving itself with external customers is the upcoming validation. Reuters
A direct measure of demand is scheduled for next week. Advanced Micro Devices NASDAQ:AMD posts results after the bell on Tuesday. The U.S. jobs report is due Friday at 8:30 a.m. EDT. According to a Reuters poll, forecasts call for 83,000 new jobs and unemployment at 4.3%.
Risks: Intel noted that certain long-term customer contracts are subject to renegotiation. A downturn in demand could reveal 14A expenses, amplify foundry losses and lead to increased debt.
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