01—Abstract
Summary
Summary of the 10-Q filed July 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Intel Corporation's Q2 2026 report reveals a significant rebound in revenue and gross profit, largely driven by strong performance in its Intel Products segment, specifically the Client Computing and Physical AI Group (CCPG) and Data Center and AI (DCAI) divisions.
Total revenue for the quarter reached $16.1 billiona, an increase of 28% year-over-year, and gross profit surged by 84% to $6.5 billion. This growth was fueled by a higher mix of premium products and increased average selling prices (ASPs), although volume growth was constrained by industry-wide supply shortages. The company also reported a substantial reduction in its operating loss for the Intel Foundry segment, indicating progress in managing costs associated with its advanced manufacturing technologies.
Despite the positive revenue and gross profit trends, Intel experienced a significant net loss of $11.0 billionb attributable to Intel, largely due to a $12.5 billion loss related to the mark-to-market of Escrowed Shares issued to the U.S. government. This non-operational item heavily impacted the bottom line. However, excluding this impact, the operational performance shows a company actively navigating complex market dynamics, investing in future technologies like Intel 14A, and restructuring its operations to drive efficiency.
02—Key points
Key Highlights
- Total revenue for Q2 2026 increased by 28% year-over-year to $16.1 billion, driven by a strong performance in the Intel Products segment.
- Gross profit more than doubled, increasing by 84% to $6.5 billion, reflecting improved pricing and product mix.
- The Data Center and AI (DCAI) segment saw significant revenue growth of 59% year-over-year, driven by higher server ASPs and hyperscaler demand.
- The Client Computing and Physical AI Group (CCPG) revenue grew 13% year-over-year, primarily due to increased client ASPs, despite volume constraints.
- Intel Foundry's operating loss narrowed substantially to $2.1 billion, down from $3.2 billion in the prior year, indicating improved cost management in manufacturing operations.
- The company recorded a significant loss of $11.0 billion attributable to Intel, heavily influenced by a $12.5 billion mark-to-market loss on Escrowed Shares related to its agreement with the U.S. government.
- Intel continues to invest in next-generation process technologies, with development and risk production underway for Intel 14A and Intel 18A-P.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, Intel lost $0.68.
- Revenue$16.13B100.0%
- Cost of revenue−$9.62B59.6%
- Gross profit$6.51B40.4%
- Operating costs−$4.71B29.2%
- Operating income$1.80B11.1%
- Interest, other & tax−$12.83B79.5%
- Net income−$11.03B68.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 24, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $16.13B$12.86B | +25.4% |
| Cost of Revenue | $9.62B$9.32B | +3.2% |
| Gross Profit | $6.51B$3.54B | +83.8% |
| R&D Expenses | $3.37B$3.68B | −8.6% |
| SG&A Expenses | $1.18B$1.14B | +2.7% |
| Operating Expenses | $4.71B$16.04B | −70.6% |
| Operating Income | $1.80B-$3.18B | +156.5% |
| Net Income | -$11.03B-$2.92B | −278.1% |
| EPS (Basic) | $-2.16$-0.67 | −222.4% |
| EPS (Diluted) | $-2.16$-0.67 | −222.4% |
| Shares Outstanding (Basic) | 5.10B4.37B | +16.8% |
| Shares Outstanding (Diluted) | 5.10B4.37B | +16.8% |
05—Questions
Frequently Asked Questions
What was the primary driver of Intel's revenue growth in Q2 2026?
The primary driver of Intel's revenue growth in Q2 2026 was the strong performance of its Intel Products segment, particularly the Data Center and AI (DCAI) and Client Computing and Physical AI Group (CCPG) divisions. This growth was mainly attributable to increased average selling prices (ASPs), driven by a higher mix of premium products sold, and increased demand, especially from hyperscalers in the DCAI segment. Despite this, volume was constrained by industry-wide supply shortages.
What caused the large net loss in Q2 2026?
The significant net loss of $11.0 billion attributable to Intel in Q2 2026 was primarily caused by a $12.5 billion loss related to the mark-to-market valuation of Escrowed Shares issued to the U.S. government under a specific agreement. This is a non-operational item and heavily impacted the company's bottom line for the quarter.
How is Intel managing costs and improving profitability in its manufacturing operations (Intel Foundry)?
Intel Foundry's operating loss narrowed significantly in Q2 2026 compared to the prior year. This improvement was driven by lower period charges, including the absence of significant non-cash asset impairment and accelerated depreciation charges recorded in the prior year. While advanced nodes like Intel 18A carry higher costs, revenue growth from these nodes and improved cost management strategies are contributing to better operational performance.
What are Intel's future technology development priorities?
Intel is heavily focused on developing next-generation semiconductor manufacturing technologies. Key priorities include the continued development of Intel 14A, the next-generation node beyond Intel 18A and Intel 18A-P. The company is also working on its derivative node, Intel 18A-P, and has released its first products manufactured on Intel 18A in high-volume production. These investments are critical for both Intel's internal product roadmap and its external Intel Foundry business.
06—Continue