◆ Inside the Latest Quarter (Q2 2026)

Intel (INTC) — the variant view

In the second quarter of 2026 Intel grew 25%, made an operating profit and still reported an $11 billion loss, because its rising share price revalued shares owed to the government.

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Intel's second quarter of 2026 was its best operating quarter in years and its worst reported loss. Revenue was $16,128 million, up 25%1, the strongest growth in more than fifteen years; CNBC noted it was the fastest since the third quarter of 2011 and above the $14.42 billion analysts expected2. Gross margin rose to 40.4% from 27.5%3. Operating income was $1,796 million against a loss of $3,176 million a year earlier4.

Q2 2026 ($M)16,128Revenue1,796Operating income-12,529Escrowed share loss-11,033Net loss attributableIntel Q2 2026 results release
A good operating quarter and a large paper loss.

Then came the escrow. Shares held in escrow for the US government are accounted for as a derivative, and as Intel's share price rose Intel recorded losses on their mark-to-market of $12,529 million5. The net loss attributable to Intel was $11,033 million, $2.16 a share; non-GAAP earnings per share were $0.426.

The segments show where the improvement came from. Data Center and AI revenue rose to $6,262 million from $3,939 million, and its operating income to $2,474 million from $633 million7. The client group earned $2,343 million on $8,877 million8. Intel Foundry's loss narrowed to $2,089 million from $3,168 million9, 36% of its revenue against 72%10.

Cash went the other way. Adjusted free cash flow was negative $8,419 million11, mainly because Intel paid $14.2 billion to buy back Apollo's 49% of its Irish factory12. It committed to completing Intel 14A13 and raised its 2026 capital spending outlook to more than $20 billion14.

The quarter proves the products can earn money in a shortage. The guide for the third quarter, revenue of $15.8 billion to $16.8 billion15, is the next check: a result inside the range with the gross margin held near 41% would say the improvement is lasting longer than a spike.

References
  1. ReportedRevenue was $16,128 million, up 25%, the strongest growth in more than fifteen years; CNBC noted it was the fastest since the third quarter of 2011 and above the $14.42 billion analysts expected.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  2. ReportedRevenue was $16,128 million, up 25%, the strongest growth in more than fifteen years; CNBC noted it was the fastest since the third quarter of 2011 and above the $14.42 billion analysts expected.
    CNBC, Intel second-quarter 2026 results: revenue of $16.1 billion against $14.42 billion expected, the fastest growth since the third quarter of 2011. — Q2 2026 · publ. 23 July 2026 · source ↗
  3. ReportedGross margin rose to 40.4% from 27.5%.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  4. ReportedOperating income was $1,796 million against a loss of $3,176 million a year earlier.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  5. ReportedShares held in escrow for the US government are accounted for as a derivative, and as Intel's share price rose Intel recorded losses on their mark-to-market of $12,529 million.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  6. ReportedThe net loss attributable to Intel was $11,033 million, $2.16 a share; non-GAAP earnings per share were $0.42.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  7. ReportedData Center and AI revenue rose to $6,262 million from $3,939 million, and its operating income to $2,474 million from $633 million.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  8. ReportedThe client group earned $2,343 million on $8,877 million.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  9. ReportedIntel Foundry's loss narrowed to $2,089 million from $3,168 million, 36% of its revenue against 72%.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  10. ReportedIntel Foundry's loss narrowed to $2,089 million from $3,168 million, 36% of its revenue against 72%.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  11. ReportedAdjusted free cash flow was negative $8,419 million, mainly because Intel paid $14.2 billion to buy back Apollo's 49% of its Irish factory.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
  12. ReportedAdjusted free cash flow was negative $8,419 million, mainly because Intel paid $14.2 billion to buy back Apollo's 49% of its Irish factory.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  13. ReportedIt committed to completing Intel 14A and raised its 2026 capital spending outlook to more than $20 billion.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  14. ReportedIt committed to completing Intel 14A and raised its 2026 capital spending outlook to more than $20 billion.
    Intel Q2 2026 earnings call prepared remarks (CEO and CFO). — Q2 2026 · publ. 23 July 2026 · source ↗
  15. ReportedThe guide for the third quarter, revenue of $15.8 billion to $16.8 billion, is the next check: a result inside the range with the gross margin held near 41% would say the improvement is lasting longer than a spike.
    Intel second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 23 July 2026 · source ↗
Sources
Generated September 25, 2026