--- title: "Intel's second-quarter revenue hits a 15-year high, but cash flow is under pressure" type: "News" locale: "en" url: "https://longbridge.com/en/news/293762901.md" description: "In the second quarter of 2026, Intel's revenue reached USD 16.1 billion, a year-on-year increase of 25%, setting a new 15-year high, with AI business becoming the core engine. Non-GAAP net profit of USD 2.2 billion exceeded expectations, but due to non-cash fair value losses, GAAP net loss was USD 11 billion, and free cash flow was negative. The company raised its full-year capital expenditure forecast to over USD 20 billion" datetime: "2026-07-24T13:20:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293762901.md) - [en](https://longbridge.com/en/news/293762901.md) - [zh-HK](https://longbridge.com/zh-HK/news/293762901.md) --- # Intel's second-quarter revenue hits a 15-year high, but cash flow is under pressure Intel announced its second-quarter financial report for the period ending June 2026, with revenue and profits far exceeding market expectations. AI-related business has become the core engine of growth, with revenue from the Data Center and AI division increasing by 59% year-on-year. However, due to non-cash accounting losses under GAAP standards, the company recorded a net loss of $11 billion, and adjusted free cash flow was also negative. The financial report shows that revenue for the quarter reached $16.1 billion, a year-on-year increase of 25%, marking the strongest quarterly growth since 2011, and nearly $2 billion higher than the consensus analyst expectation of $14.4 billion. Under Non-GAAP standards, net profit was $2.2 billion, with earnings per share of $0.42, achieving a turnaround and approximately double the market expectation. Gross margin significantly increased to 41.8%, up 12.1 percentage points from the same period last year. Overall, AI-related business grew by more than 70% year-on-year, contributing nearly 70% of total revenue. Revenue from the Data Center and AI division (DCAI) was $6.3 billion, a year-on-year increase of 59%, marking the strongest quarterly growth in server business history. Management stated that as AI applications evolve from training to autonomous agents, demand for general-purpose CPUs has significantly increased, with the Xeon 6 series processors becoming one of the fastest-selling products in the company's history. Revenue from Client Computing and Physical AI Group (CCPG) was $8.9 billion, a year-on-year increase of 13%; revenue from foundry services (Intel Foundry) was $5.8 billion, a year-on-year increase of 31%, but operating losses still reached $2.089 billion. Despite significant improvements in core operations, the company's GAAP net loss of $11 billion primarily stemmed from a $12.5 billion non-cash fair value loss related to shares held in trust by the U.S. Department of Commerce, which increased due to rising stock prices. Additionally, due to a net outflow of $12.2 billion from partner funding, adjusted free cash flow was -$8.4 billion. As customer demand continues to exceed supply capacity, the company has raised its full-year capital expenditure forecast for 2026 from the previous $18 billion to over $20 billion, and has indicated that capital expenditures in 2027 will be significantly higher than in 2026, with the majority directed towards domestic manufacturing networks in the U.S. The company expects third-quarter revenue to be between $15.8 billion and $16.8 billion, with adjusted earnings per share expected to be $0.38, both exceeding analyst expectations ### Related Stocks - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [LINT.US](https://longbridge.com/en/quote/LINT.US.md) - [INYY.US](https://longbridge.com/en/quote/INYY.US.md) - [04335.HK](https://longbridge.com/en/quote/04335.HK.md) ## Related News & Research - [Key facts: Intel 15‑yr revenue high; margins >40%/17%; 14A/18A risk](https://longbridge.com/en/news/293815661.md) - [Intel Stock Just Got a Stunning Price Target Hike Ahead of Earnings. How to Play INTC From Here.](https://longbridge.com/en/news/293383311.md) - [Intel plans layoffs within its data center group](https://longbridge.com/en/news/293364099.md) - [DAC 2026: What Does It Actually Take to Create AI Chips?](https://longbridge.com/en/news/293783507.md) - [Intel (INTC) Lands Fortinet Foundry Deal As Lunar Lake Reaches Edge AI Tablets](https://longbridge.com/en/news/293448020.md)