INTC earnings

Intel reported Q2 FY2026. EPS came in at $0.42 against a $0.21 consensus, beat by 100.0%. Revenue was $16.1B versus $14.4B expected, beat by 11.7%. Gross margin was 40.4%, up 100 bps from last quarter.

Intel reported a strong Q1 FY2026, with revenue and EPS significantly outpacing street estimates. Revenue came in at $13.58 billion, a 9.3% beat over the $12.42 billion estimate, while EPS of $0.29 far exceeded the near-zero estimate. This print underscores Intel's resurgence, driven by strong demand in AI and improved operational efficiency.

Intel cleared a low Q4 bar with EPS leverage, but the variant read is that the print does not yet pay investors for an AI or foundry re-rating: revenue was only +1.8% above Street, Q4 revenue was -4.1% YoY, and the Q1 guide reset to $11.7 billion to $12.7 billion. The market may be over-crediting the $0.15 EPS beat as operational acceleration when the more actionable signal is narrower: client and server demand can support revenue near $13.7 billion, but gross margin is still being pulled down by outsourced client mix and Intel 18A ramp costs.

Intel cleared a low bar on EPS and beat revenue by +3.5%, but the market’s likely mistake is treating the print as a cyclical PC/server recovery rather than a liquidity event that buys time for Intel 18A. The quarter’s variant signal is that product cash generation and external capital are now funding the foundry option, while the Q4 gross-margin guide shows the cost of that option is still very much in the P&L.