Intel (NASDAQ: INTC) reported second-quarter revenue of $16.1 billion on Thursday, up 25% from $12.9 billion a year earlier. The chipmaker posted a GAAP loss of $2.16 per diluted share, while non-GAAP earnings reached $0.42 per share.
Operating performance improved even as Intel reported an $11 billion GAAP net loss attributable to shareholders. GAAP operating margin improved to 11.1% from negative 24.7%, while non-GAAP net income reached $2.2 billion, compared with a $400 million loss in the prior-year quarter.
The gap between the two earnings measures largely reflected a $12.5 billion mark-to-market loss on escrowed shares connected to Intel’s agreement with the U.S. government. Intel excludes that non-operating adjustment, along with share-based compensation and restructuring charges, from its non-GAAP results.
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Data center sales lead growth
Intel’s Data Center and AI division generated $6.3 billion of revenue, up 59% year over year. Client Computing and Physical AI revenue rose 13% to $8.9 billion, bringing total Intel Products revenue to $15.1 billion, a 28% increase.
Intel Foundry revenue climbed 31% to $5.8 billion, although that figure includes manufacturing and related services provided to Intel’s own product businesses. Intersegment eliminations totaled $5.5 billion. Intel also generated $7 billion in operating cash flow during the quarter.
Chief Executive Lip-Bu Tan said the quarter produced Intel’s strongest revenue growth in more than 15 years. “AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network,” Tan said.
Chief Financial Officer Dave Zinsner said higher factory yields and shorter cycle times helped Intel ship more products than expected. Intel plans to increase investment in manufacturing capacity and supplies to meet demand across its product and foundry operations.
Year-over-year comparisons were affected by the September 2025 deconsolidation of Altera. Intel stopped consolidating the programmable-chip business after selling a 51% stake, although it retained the remaining 49% interest.
Intel 18A enters more products
Intel launched Xeon 6+, its first server-class processor manufactured with Intel 18A, during the quarter. The foundry business also moved Intel 18A-P into risk production and began high-volume manufacturing for some Panther Lake processors using ASML’s EXE High NA EUV equipment.