Intel Corporation

Q2 FY26Semiconductors and Semiconductor Equipment

Intel Corporation Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹121

Market cap₹6.1L Cr

P/E80.2

Updated29 May 2026

Read4 min read

What the Q2 FY26 call signalled

2 of 5 strong

RevenueRank 3

MarginRank 3

CapexYes

FundraiseNo

Order bookYes

The short version

- Server CPU demand expected to grow strongly with double-digit unit growth in 2026 and momentum into 2027. - Intel expects continued strong growth in server CPU demand, with double-digit unit growth projected for the industry and Intel through 2027.

From Intel Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 3

Server CPU demand expected to grow strongly with double-digit unit growth in 2026 and momentum into 2027.
Supply to increase every quarter from Q2 onward in 2026, following a low supply point in Q1.
Finished goods inventory tapped in Q1 to move legacy/despect product; less benefit expected in Q2.
ASIC business is rapidly growing, already at billion-dollar run rate, projected to grow fast over next 5 years.
Foundry external revenue growing; Intel 18A ramping early with improving yields but still a gross margin headwind.
PC industry volume expected to decline low double digits full year; Intel plans flattish revenue run rate post Q2 due to pricing and inventory replenishment.
Capital expenditures expected flat in 2026 with increased capacity investments supporting committed demand.
Overall revenue guided Q2 up 2-9% sequentially; full-year growth outlook cautiously positive given macro and cost headwinds.

Profitability & Margins

Intel expects continued strong growth in server CPU demand, with double-digit unit growth projected for the industry and Intel through 2027.
ASIC business is rapidly growing, currently at a $1 billion run rate and expected to grow meaningfully over the next 5 years.
Q2 guidance projects sequential revenue growth of 2% to 9%, with data center and client computing group revenues increasing on improved supply and pricing.
Q2 gross margin forecast is 39%, slightly down from Q1 due to inventory and early ramp of Intel 18A.
Operating expenses in 2026 are expected to be around $16 billion or higher due to inflation and targeted investments.
Capital expenditures for 2026 are expected to be flat year-over-year, focusing on capacity investments and fab productivity.
CEO Lip-Bu Tan calls 2026 the "year of execution," emphasizing improved yields, productivity, and supply chain to meet demand.
Intel expects continued gross margin improvements driven by yields and operational efficiencies, though risks include rising input costs.

See what Intel Corporation said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

CapEx guidance for 2026 is flat year-over-year, around $17 billion to $18 billion, reflecting increased capacity investments and fab productivity improvements.
Tool spend is expected to rise approximately 25% year-over-year to meet strong demand and supply catch-up.
Investments prioritize wafer starts across Intel 10, 7, Intel 3, and 18A nodes, focusing on EUV nodes but also increasing Intel 10 and 7 wafer starts.
Capital expenditures are expected to be roughly equal across 2026 and heavily weighted towards equipment that grows wafer outs to support growth this year and next.
Foundry investments are to support committed demand, with earlier design commitments expected beginning in H2 2026 and expanding into early 2027.
Intel completed a buyout of the Fab 34 joint investment in Ireland, allowing full economic benefits as the fab ramps up.
Efficiency and operational improvements remain a focus to maximize ROI on investments amid inflationary pressures.

Fundraising & Capital Structure

Intel recently closed a transaction to repurchase the 49% equity interest in the Fab 34 joint investment in Ireland, funded with approximately $7.7 billion in cash and $6.5 billion in new debt.
The company remains committed to retiring all $2.5 billion of debt maturities due in the current year and all $3.8 billion due in 2027.
No new equity fundraising was mentioned in the provided information.
Adjusted free cash flow is still expected to be positive for the full year excluding the Fab 34 buyout.
Debt issuance related to the Fab 34 purchase is the latest material funding event disclosed.

See what Intel Corporation said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Supply is expected to increase every quarter starting in Q2, with Q1 likely being the lowest supply point of the year.
In Q1, Intel utilized finished goods inventory, including despect and legacy products, to fulfill some demand, but this benefit may not continue into Q2.
The company will closely scrutinize finished goods inventory to find further selling opportunities.
Demand remains strong, supported by long-term agreements like the one with Google for Xeon IPU and ASIC business.
The ASIC (purpose-built silicon) business has already surpassed a $1 billion run rate and is expected to grow rapidly over the next 5 years.
Intel is increasing wafer starts across multiple nodes (Intel 10, 7, Intel 3, and 18A) to meet rising demand, including for both internal and external customers.
Customer commitments typically cover 3 to 5 years, providing volume and pricing visibility for supply planning.

What Intel Corporation's management said in earlier quarters

Others in Semiconductors and Semiconductor Equipment this season

FormFactor, Inc. (Q2 FY26)
FormFactor, Inc. Q2 FY26 quarterly results analysis. FormFactor expects continued strong revenue growth, with Q2 2026 guidance at $240 million ± $5 million, up
Skyworks Solutions, Inc. (Q2 FY26)
Skyworks Solutions, Inc. Q2 FY26 quarterly results analysis. Revenue opportunity expected to rise year-over-year, acting as a growth tailwind through 2030 (Page
Onto Innovation Inc. (Q2 FY26)
Onto Innovation Inc. Q2 FY26 quarterly results analysis. Advanced packaging revenue expected to grow more than 50% in 2026, driven by Dragonfly G5 and panel-lev
Nova Ltd. (Q2 FY26)
Nova Ltd. Q2 FY26 quarterly results analysis. Nova expects robust growth driven by advanced DRAM, Logic (including gate-all-around), and advanced packaging mark

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Frequently Asked Questions

What were Intel Corporation Q2 FY26 results?

What is Intel Corporation share price analysis?

Intel Corporation currently shows a below-average growth signal. The stock trades at a P/E of 80.2 with a market cap of $607,593. Investors should review the full earnings analysis for detailed insights.

Is Intel Corporation planning capital expenditure?

- CapEx guidance for 2026 is flat year-over-year, around $17 billion to $18 billion, reflecting increased capacity investments and fab productivity improvements.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.