Intel $INTC jumps 12% after Q2 revenue rises 25% to $16.1B

$16.1B in Q2 revenue, 25% year-over-year growth, and $0.42 in non-GAAP EPS put Intel Corporation $INTC back into the market's earnings-surprise column on July 23, 2026. Intel's earnings release also guided Q3 2026 revenue to $15.8B-$16.8B and non-GAAP EPS to $0.38, giving investors concrete numbers behind the after-hours stock move reported by market data providers.

The segment mix explains why the reaction focused on AI compute rather than a one-quarter accounting swing. Data Center and AI revenue was $6.3B, up 59% from Q2 2025. Client Computing and Physical AI Group revenue was $8.9B, up 13%. Intel Foundry revenue was $5.8B, up 31%, although intersegment eliminations mean those operating-segment figures should not be added directly to net revenue.

The profit bridge was equally material. GAAP EPS attributable to Intel was a loss of $2.16 because of below-the-line items, but non-GAAP EPS was $0.42 versus a $0.10 non-GAAP loss a year earlier. Gross margin improved to 40.4% on a GAAP basis and 41.8% on a non-GAAP basis, while operating margin moved to 11.1% GAAP and 17.2% non-GAAP.

Management tied the quarter to server CPU demand, AI inference, packaging, and foundry utilization. The release lists Xeon 6+, Intel 18A-P risk production, Fortinet as an advanced design and manufacturing collaboration, and a EUR 5B manufacturing capacity investment among the period's operating highlights.

The next checkpoint is whether Q3 revenue lands near or above the $16.3B midpoint and whether foundry growth converts into external customer traction. Investors will also watch the Q2 2026 Form 10-Q risk language around tariffs, export controls, Middle East tension, and Taiwan-related supply-chain risk.

Not investment advice. Verify all figures with primary sources before acting.