Intel reported total revenue of $16.128 billion for the second quarter, a 25% increase year-over-year, marking the highest growth rate in the last fifteen years. This was driven by strong computing demand, improved product delivery efficiency, and higher manufacturing yields.
GAAP operating profit for the quarter was $1.796 billion, compared to a loss of $3.176 billion in the same period last year, resulting in an operating margin of 11.1%. Non-GAAP operating profit reached $2.770 billion, with a non-GAAP operating margin of 17.2%, positively influenced by a 6% year-over-year reduction in operating expenses such as R&D and MG&A.
At the end of the quarter, cash, cash equivalents, and short-term investments totaled $29.727 billion, a significant sequential decline due to capital investments in equipment and clean room construction during the period. Adjusted free cash flow was negative $8.419 billion.
The Client Computing and Physical AI business (CCPG) generated revenue of $8.877 billion, up 13% year-over-year. The Data Center and Artificial Intelligence (DCAI) segment posted revenue of $6.262 billion, a substantial 59% increase. Intel Foundry revenue reached $5.765 billion, growing 31%.
GAAP net loss attributable to common stockholders was $11.033 billion (impacted by non-operating items like mark-to-market adjustments on equity investments). Non-GAAP net income attributable to common stockholders was $2.197 billion. GAAP diluted loss per share was $2.16, while non-GAAP diluted earnings per share were $0.42.
Data Center and AI: Launched the next-generation data center CPU based on Xeon 6+, the first server-class product built on the Intel 18A process. Partnered with SambaNova and Foxconn to introduce rack-scale AI infrastructure for agentic workloads.
Physical AI and Edge: Over 130 customers have adopted or are testing the Intel Core Ultra Series 3 and Core Series 3 processors. Introduced the open-source OpenVINO Physical AI framework.
Foundry and Manufacturing: Intel 18A-P entered the risk production phase. Utilized ASML EXE High NA EUV technology to achieve high-volume production of Panther Lake (a subset of Core Ultra Series 3). Announced a €5 billion investment to expand Xeon capacity using the Intel 3 process.
Networking and Handheld: Introduced the Intel Arc G-series handheld processor. Released the Ethernet E835 product portfolio, covering 10GbE to 200GbE.
Management and Organization: Appointed Alex Katouzian to lead CCPG, Pushkar Ranade as CTO, and Seok-Hee Lee to lead advanced packaging. Deepened a multi-year strategic partnership with Google Cloud.
Outlook
Revenue for the third quarter of 2026 is expected to be between $15.8 billion and $16.8 billion.
GAAP gross margin for the third quarter is projected to be approximately 41.0%, with non-GAAP gross margin around 42.0%.
GAAP diluted earnings per share for the third quarter are forecast at $0.31, with non-GAAP diluted earnings per share at $0.38.
The company plans to maintain a strong balance sheet and ample liquidity to support investments in equipment, clean rooms, and substrates.
Over the long term, AI is expected to continue driving robust growth in computing demand. Intel aims to achieve sustainable growth through its CPU architecture, ASICs, advanced packaging, and foundry network.
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