Intel reported second-quarter revenue of $16.1 billion, up 25% from a year earlier and above the market expectation of $14.4 billion. Adjusted earnings per share came in at $0.42, also ahead of the expected $0.21. On a GAAP basis, the company posted a net loss of $11 billion, which it said was mainly driven by a $12.5 billion mark-to-market loss tied to escrowed shares related to its agreement with the U.S. government under the CHIPS Act. Business segments were broadly stronger, with Data Center and AI revenue reaching $6.3 billion, up 59%, Client Computing and Physical AI revenue at $8.9 billion, up 13%, and Intel Foundry revenue at $5.8 billion, up 31%. Intel said data center orders now exceed current supply capacity and that it has signed 10 long-term server CPU supply agreements. Gross margin recovered to 40.4% from 27.5% a year earlier, while operating cash flow reached $7 billion. For the third quarter, Intel guided for revenue of $15.8 billion to $16.8 billion and adjusted EPS of about $0.38, both above market expectations.
Intel reported second-quarter revenue of $16.1 billion, up 25% year over year, marking its strongest quarterly growth rate in more than 15 years and beating the market expectation of $14.4 billion. Adjusted earnings per share came in at $0.42, above the expected $0.21.
On a GAAP basis, Intel posted a net loss of $11 billion for the quarter. The company said the main driver was a $12.5 billion mark-to-market loss on escrowed shares tied to its agreement with the U.S. government under the CHIPS Act.
Segment revenue
In its business lines, Data Center and AI (DCAI) revenue reached $6.3 billion, up 59% from a year earlier. Client Computing and Physical AI (CCPG) revenue was $8.9 billion, up 13%. Intel Foundry revenue totaled $5.8 billion, up 31%.
Orders, margins and cash flow
Intel said data center orders have moved beyond its current supply capacity. The company also said it has signed 10 long-term server CPU supply agreements.
Gross margin recovered to 40.4% from 27.5% in the same period last year. Operating cash flow was $7 billion.
Third-quarter outlook
For the third quarter, Intel forecast revenue of $15.8 billion to $16.8 billion and adjusted EPS of about $0.38. Both figures were above market expectations.
After the earnings release, Intel shares rose about 11% in after-hours trading.
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