Intel Q2 FY2026: $16.13B revenue, $11.03B GAAP loss on escrow charge
Intel's operating business is clearly improving: revenue rose 25.4% to $16.13 billion, gross margin reached 40.4%, and non-GAAP EPS of $0.42 nearly doubled the $0.2177 consensus. The headline $11.03 billion GAAP loss is almost entirely a $12.53 billion non-cash mark-to-market charge on escrowed shares, not operating weakness. Neutral, because foundry still lost $2.09 billion and the balance sheet is absorbing real cash outflows.
1 · Expected vs. Actual
Free preview belowGAAP EPS was a loss of $2.16, while non-GAAP EPS of $0.42 beat the $0.2177 consensus by $0.2023, or 92.9%. The $13.23 billion gap between the $11.03 billion GAAP loss and $2.20 billion non-GAAP profit is dominated by the $12.53 billion escrowed-shares charge. Underneath the noise, GAAP operating income was actually positive at $1.80 billion.
Revenue of $16.13 billion rose 25.4% from $12.86 billion a year ago, led by DCAI at $6.26 billion (up 59.0%) and Intel Foundry at $5.77 billion (up 30.5%). Client Computing and Physical AI Group, the biggest unit, grew only 12.8% to $8.88 billion. Be careful with segment totals: they add to $21.61 billion because $5.48 billion of internal sales are eliminated before you reach the $16.13 billion consolidated line.
Management guided third-quarter 2026 revenue to $15.80–$16.80 billion, a $16.30 billion midpoint, with GAAP gross margin of 41.0% and non-GAAP EPS of $0.38. That midpoint is only 1.1% above the $16.13 billion just delivered, so the guide implies a plateau rather than acceleration. One quarter ago the midpoint was $14.30 billion and the company delivered $16.13 billion, so this range may again prove conservative.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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