On July 24, Intel reported Q2 FY2026 revenue of $16.13 billion**, up **25% year-over-year** – the highest quarterly growth in nearly 15 years. Gross profit rose **83.8% to $6.51 billion , with gross margin hitting 40.4% , up 12.9 points YoY. Operating cash flow reached $7.0 billion.
However, on a GAAP basis, Intel posted a net loss of **$11.03 billion** (EPS -$2.16), as heavy fab investments continue to weigh on profitability. On a non-GAAP basis, EPS stood at $0.42.
Data Center & AI led the growth with $6.3 billion** in revenue, up **59% YoY** – driven by server chip demand and AI infrastructure expansion. **Foundry revenue grew 31% to $5.8 billion , reflecting strong uptake of advanced process and packaging services. The Client Computing Group contributed steady PC processor sales, forming a three-engine growth model (PC, data center, and foundry) that collectively drove revenue expansion.
To underpin long-term manufacturing competitiveness, Intel raised its full-year CAPEX guidance from $18 billion to over $20 billion , with funds directed to wafer fab expansion, advanced process R&D, and next-generation product ramp.
From ICgoodFind: Revenue is surging, foundry is scaling, but the profit engine hasn't started yet. Intel's CAPEX-heavy strategy is paying off in top-line growth – but the bottom line is still paying for tomorrow's capacity.
