Highlights

  • Intel reported Q2 2026 revenue of $16.1 billion, up 25% year over year, with DCAI (Data Centre and AI) segment revenue of $6.3 billion growing 59% as server CPU and AI accelerator demand expanded.
  • Client Computing Products Group (CCPG) revenue of $8.9 billion grew 13% year over year, supported by AI PC adoption of Intel Core Ultra processors and enterprise PC refresh demand.
  • Intel 18A-P process technology entered risk production during Q2 2026, a critical milestone in Intel's foundry strategy as the company prepares to manufacture chips for external customers at leading-edge process nodes.
  • Non-GAAP EPS of $0.42 and non-GAAP gross margin of 41.8% reflect a company in structural transition, with Q3 2026 revenue guidance of $15.8 to $16.8 billion maintaining similar revenue levels as the foundry investment cycle continues.

Intel Corporation (NYSE:INTC) delivered second-quarter 2026 results that showed revenue recovery across its core computing segments while advancing the manufacturing milestones that are central to its long-term competitive repositioning. Total revenue of $16.1 billion, up 25% year over year, was led by Data Centre and AI segment growth of 59% to $6.3 billion, reflecting the expansion of Intel's Xeon server CPU franchise and the growing contribution of Gaudi AI accelerator deployments in enterprise AI inference markets. Simultaneously, the entry of Intel's 18A-P process technology into risk production confirmed that the company's foundry strategy is progressing toward the capability milestones needed to attract external manufacturing customers.

Data Centre and AI Segment Leads Revenue Recovery

DCAI revenue of $6.3 billion in Q2 2026, up 59% year over year, was driven primarily by Intel's fifth-generation Xeon server CPU, which has sustained demand in enterprise and cloud server procurement as customers refresh data centre infrastructure for AI-capable workloads. Xeon's integrated AI inference acceleration via AMX (Advanced Matrix Extensions) instructions has enabled Intel to address AI inference demand for enterprise customers without requiring dedicated GPU hardware, positioning Xeon as a cost-effective AI inference substrate for workloads where the inference task is not sufficiently large to justify dedicated accelerator provisioning.

Intel's Gaudi AI accelerator line also contributed to DCAI revenue, with enterprise customers deploying Gaudi for AI inference in cost-sensitive deployments. Intel has positioned Gaudi as a higher-performance-per-dollar alternative for inference compared with GPU-based options in specific deployment configurations, and has continued to expand the software ecosystem around Gaudi to lower the integration barrier for enterprise customers.

Client Computing Products Group

CCPG revenue of $8.9 billion, up 13% year over year, reflected the intersection of enterprise PC refresh demand and the growing adoption of Intel Core Ultra processors that integrate a dedicated Neural Processing Unit for on-device AI acceleration. The AI PC category, which requires certified NPU performance for Microsoft Copilot+ and AI-assisted productivity applications, has driven commercial PC procurement toward newer-generation platforms that meet AI PC specifications, providing a sustained tailwind for Intel's client CPU business.

Intel 18A-P in Risk Production — Foundry Milestone

The entry of Intel 18A-P into risk production during Q2 2026 represents the most significant operational milestone in Intel's foundry transformation programme. Intel 18A-P is the company's leading-edge process node, designed to provide performance competitive with TSMC's 2nm and Samsung's equivalent technologies. Risk production — the phase in which chips are manufactured to assess process maturity before high-volume customer production begins — demonstrates that Intel's process engineering has achieved sufficient yield and device performance metrics to proceed toward external customer tape-outs. Intel has disclosed that several prospective foundry customers are in qualification with 18A-P, including a U.S. defence programme.

Q3 2026 Guidance and Outlook

For Q3 2026, Intel guided revenue of $15.8 billion to $16.8 billion, with non-GAAP gross margin of approximately 41.5% and non-GAAP EPS in a range consistent with Q2 performance. Management characterised the Q3 outlook as reflecting continued DCAI growth offset by anticipated moderation in CCPG as AI PC inventory dynamics normalise. The sustained foundry investment programme is expected to maintain elevated capital expenditure through fiscal 2026, with the expectation that external foundry revenue will become a meaningful contributor in later periods as customer qualifications complete.

Stock Price Information

Intel Corporation (NYSE:INTC) traded at $26.84 on 29 October 2026, representing a gain of 4.01% on the day, on volume of 61.45 million shares.