Intel reported second-quarter 2026 financial results on July 23, delivering strong performance that marked its seventh consecutive period of beating its own guidance. Revenue hit $16.1 billion versus the $14.42 billion expected, with adjusted EPS of 42 cents beating analyst expectations of 21 cents.

The company’s 25% revenue growth was the fastest for any quarter in nearly 15 years, driven primarily by surging demand for data center processors and AI infrastructure.

Data Center Business Explodes

Intel’s data center segment delivered the standout result. Revenue from this business rose 59% to $6.3 billion, reflecting robust spending by hyperscalers and enterprises deploying AI systems. The strong data center momentum underscores Intel’s recovery after years of competitive pressure from AMD.

Gross margins improved to 55%, up from 49% in the same period last year, showing the company’s operating leverage at work.

Guidance Raises Stakes for Rest of Year

Intel is forecasting third-quarter 2026 revenue of $15.8 billion to $16.8 billion and third-quarter EPS of $0.31 (non-GAAP: $0.38). The company also announced increased capital spending plans, raising its 2026 CapEx from $18 billion to $20 billion to meet continued demand for manufacturing capacity.

Shares jumped as much as 12-13% in after-hours trading, though the stock has been volatile, down 28% over the month prior to earnings.

The momentum reflects renewed confidence in Intel’s manufacturing roadmap and its ability to compete in the AI-driven processor market.