NEW YORK, July 25, 2026, 1:08 p.m. EDT. U.S. markets have closed.
- Shares ended Friday at $92.32, falling 7.9%, with a 2.9% decline for the week.
- Second-quarter revenue surpassed analyst expectations by close to 12%. The midpoint forecast for Q3 was approximately 8% above consensus.
- Roughly 5% of foundry revenue came from external customers. Intel increased its projected capital spending for 2026 to $20 billion.
Intel shares fluctuated by about 14 percentage points throughout Friday’s trade. The stock gained 6% in premarket trading, but ended the session down 7.9%. Strong earnings could not turn the tide.
The reversal wiped out significant value. Based on Intel’s July 17 share count, an initial calculation shows Friday’s equity value drop at about $40 billion.
The latest quarterly filing sheds light on the issue. Server average selling prices climbed 48%, with unit shipments up 9%. The majority of the price rise was attributed to demand for premium products.
Client outcomes were driven even more by price. The average price increased by 27% while unit volume declined 8%. Data indicates product mix had a greater impact than expansion in overall volume.
Intel’s second-quarter revenue reached $16.13 billion, rising 25.4% and beating the $14.42 billion consensus by almost 12%. Adjusted earnings per share stood at 42 cents, twice the 21-cent forecast.
Adjusted gross margin stood at 41.8%, surpassing consensus by three points. Third quarter revenue guidance was set at a midpoint of $16.3 billion, ahead of the $15.1 billion estimate. The outlook for adjusted EPS is 38 cents, compared to an expected 27 cents.
Intel Chief Executive Lip-Bu Tan described the results as the company’s “strongest revenue growth in more than fifteen years.” Intel Corporation
The operating mix was more complex.
| Measure | Q2 2026 or outlook | Comparison |
|---|---|---|
| Consolidated revenue | $16.13 billion | Increase of 25.4%; consensus $14.42 billion |
| Data Center and AI | $6.26 billion | Growth of 59%; server prices rose 48%; units climbed 9% |
| Client Computing and Physical AI | $8.88 billion | Up 13%; client prices advanced 27%; units declined 8% |
| Intel Foundry | $5.77 billion | Rising 31%; external revenue $293 million; operating loss of $2.09 billion |
| 2026 capital spending | $20 billion | Prior forecast: $18 billion |
Segment totals account for intercompany transactions. The estimated portion of external foundry revenue stood at approximately 5.1%.
Roughly 95% of recorded foundry revenue was still intersegment. Intel noted the external rise was largely due to Altera shifting to an external client post-deconsolidation. Wider customer adoption remains an important measure.
Shay Boloor, chief market strategist at Futurum Group, put it directly: Intel needs to “convert the current data center shortage into sustained revenue growth,” he said. Reuters
To meet that demand, management is increasing expenditures. Intel boosted its capital spending by 11% to reach $20 billion. CFO David Zinsner stated spending will rise “up meaningfully” in the upcoming year. Reuters
Zinsner stated Intel has entered into three- to five-year agreements with customers for CPUs and XPUs. Certain deals specify both price and volume obligations, while others address only volume.
The balance sheet allows for flexibility, though within limits. As of June 27, cash and short-term investments totaled $29.7 billion. Total debt reached $50.5 billion. Operating cash flow for the first half amounted to $8.1 billion.
The downturn on Friday affected the entire sector, with the Philadelphia Semiconductor Index sliding 4.5%. Intel shares declined 7.9%, as trading volume hit 181.1 million, roughly 35% higher than the 65-day average.
Intel finished the week 2.9% lower, even after rising 8.6% on Tuesday. Over the same timeframe, the Nasdaq Composite fell 2.1%.
Intel does not have any company events scheduled for the upcoming week. The Federal Reserve is set to meet on July 28-29. Microsoft NASDAQ:MSFT and Meta Platforms NASDAQ:META will both release reports on July 29, providing new insight into data-center spending.
Risks: Unit growth through 2027 may be limited by supply constraints. A quicker reduction in scarcity could impact pricing. Increased capital expenditures may affect cash flow prior to the ramp-up of external foundry sales.
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