Intel (NASDAQ:INTC) Announces Quarterly Earnings Results

Intel (NASDAQ:INTC) posted its earnings results on Thursday. The chip maker reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.21, FiscalAI reports. The firm had revenue of $16.13 billion during the quarter, compared to analyst estimates of $14.43 billion. Intel had a positive return on equity of 0.39% and a negative net margin of 5.90%.The company’s revenue for the quarter was up 25.2% on a year-over-year basis. During the same period in the previous year, the company earned ($0.10) EPS. Intel updated its Q3 2026 guidance to 0.380-0.380 EPS.

Here are the key takeaways from Intel’s conference call:

• Intel reported a strong Q2, with revenue of $16.1 billion, non-GAAP gross margin of 41.8%, and EPS of $0.42 all beating guidance, marking the seventh straight quarter of exceeding expectations.
• Management said demand is still outpacing supply across AI-driven businesses, with AI-related revenue up more than 70% year over year and record data center growth driven by strong demand for x86 CPUs and Xeon 6.
• Intel Foundry showed meaningful progress, with 18A output above target, improving yields, and risk production beginning on 18A-P; the company also said 14A is advancing ahead of plan and is slated for internal risk production in 2H 2027.
• The company raised its 2026 CapEx outlook to more than $20 billion and indicated 2027 spending will be significantly higher, mostly tied to front-end fab tools and U.S. expansion, reflecting confidence in longer-term demand but also heavier cash needs.
• Near-term guidance was mixed: Q3 revenue is forecast at $15.8 billion-$16.8 billion, but management said PC demand is likely to stay soft amid memory constraints while server demand remains strong, with supply still tight into Q4.

Intel Stock Down 3.6%

Shares of INTC stock traded down $3.60 during trading on Friday, reaching $96.63. The company’s stock had a trading volume of 68,186,803 shares, compared to its average volume of 119,893,617. Intel has a one year low of $18.97 and a one year high of $142.35. The business has a fifty day moving average price of $116.17 and a 200-day moving average price of $77.97. The company has a market cap of $485.67 billion, a price-to-earnings ratio of -155.57 and a beta of 2.18. The company has a quick ratio of 1.85, a current ratio of 2.31 and a debt-to-equity ratio of 0.34.

Insider Buying and Selling

In other news, EVP Boise April Miller sold 40,256 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $99.53, for a total transaction of $4,006,679.68. Following the completion of the transaction, the executive vice president directly owned 105,077 shares in the company, valued at $10,458,313.81. This represents a 27.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Intel

Several large investors have recently made changes to their positions in the stock. Morgan Stanley grew its position in shares of Intel by 20.4% in the 4th quarter. Morgan Stanley now owns 65,249,269 shares of the chip maker’s stock valued at $2,407,698,000 after acquiring an additional 11,056,090 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in Intel by 8.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 48,007,417 shares of the chip maker’s stock worth $1,771,474,000 after purchasing an additional 3,832,960 shares during the period. AQR Capital Management LLC lifted its position in shares of Intel by 61.3% in the third quarter. AQR Capital Management LLC now owns 25,001,621 shares of the chip maker’s stock valued at $838,804,000 after buying an additional 9,503,402 shares during the last quarter. Rafferty Asset Management LLC increased its holdings in shares of Intel by 66.4% during the 2nd quarter. Rafferty Asset Management LLC now owns 19,396,839 shares of the chip maker’s stock worth $434,489,000 after acquiring an additional 7,736,635 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Intel by 3.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 16,231,130 shares of the chip maker’s stock valued at $598,987,000 after purchasing an additional 547,879 shares during the period. Institutional investors and hedge funds own 64.53% of the company’s stock.

Key Stories Impacting Intel

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel’s Q2 results beat expectations on both earnings and revenue, and management raised its outlook, which is the main driver behind the stock’s move higher. Intel blows past estimates, recording fastest sales growth in almost 15 years on ‘unprecedented’ demand
• Positive Sentiment: Investors are also reacting to evidence that AI demand is boosting Intel’s data-center business and foundry momentum, supporting hopes for a longer-term recovery. Intel sales, profit forecast beat estimates, boosts spending plans on AI boom
• Positive Sentiment: Several analyst notes turned more constructive after earnings, including upgrades or maintained Buy ratings and higher price targets, which can help reinforce bullish sentiment. Intel Maintained at Buy as Strong Q2 Results and Foundry Strategy Support Unchanged $160 Price Target
• Neutral Sentiment: There was some mixed analyst reaction as a few firms kept neutral or sell ratings despite lifting targets, suggesting the rally may face valuation scrutiny after the sharp run-up.
• Negative Sentiment: Intel is still facing reminders that execution risk remains, especially around foundry traction and supply constraints, so some investors may question how sustainable the recovery will be. Hold Rating Maintained on Intel as Analyst Sees Execution Risks and Unproven Foundry Traction Despite AI-Driven Upside

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. UBS Group set a $115.00 price objective on Intel in a research report on Thursday, July 16th. Roth Capital restated a “buy” rating and issued a $120.00 price target on shares of Intel in a research report on Friday. Sanford C. Bernstein restated a “market perform” rating and set a $100.00 price objective on shares of Intel in a report on Wednesday, June 17th. The Goldman Sachs Group reiterated a “neutral” rating on shares of Intel in a research note on Thursday. Finally, Cantor Fitzgerald reduced their price objective on Intel from $150.00 to $125.00 and set a “neutral” rating for the company in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, twenty-nine have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $105.30.

About Intel

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.