A maker of the microprocessors that power personal computers, servers, and data centers, Intel builds well-known lines like Intel Core and Xeon chips and manufactures most of them in its own factories. Founded in 1968 by Robert Noyce and Gordon Moore (who had earlier co-founded Fairchild Semiconductor), the company was briefly named N.M. Electronics. The founders considered calling it "Moore Noyce," but rejected it because it sounded like "more noise"—so they settled on "Intel," short for "integrated electronics."
Q2 2026 net loss of $11.0B driven by $12.5B escrow share loss; revenue rose 7.2% to $13.6B
A $12.5B escrow share loss drove Intel to an $11.0B net loss this quarter. rose 7.2% to $13.6B and rose 2.5 points to 39.4% from a year ago, while Intel Products revenue grew 28% on premium pricing and Intel Foundry's loss narrowed to $2.1B. The core business improved, but a non-cash mark on overwhelmed the quarter.
Key takeaways
A $12.5B loss from the change in fair value of produced an $11.0B consolidated net loss, a non-cash item outside operating performance.
rose 7.2% to $13.6B and fell 0.7% sequentially; Intel Products revenue grew 28% to $15.1B on DCAI up 59% and CCPG up 13% from higher ASPs, though volumes fell on supply constraints.
rose 2.5 points to 39.4% from Q2 2025's 27.5% and 3.2 points from Q1 2026's 36.9%, aided by $1.5B in lower period charges including the absence of a $797M asset .
Section summaries
Management's Discussion and Analysis
Intel Products revenue rose 28% YoY to $15.1B in Q2 2026, driven by premium mix and pricing, while a $12.5B escrow share loss led to a net loss of $11.0B.
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Intel Products grew 28% to $15.1B in Q2 2026, with DCAI up 59% on higher server ASPs and hyperscaler demand, and CCPG up 13% on client increases, though volumes fell due to supply constraints.
Intel Foundry narrowed to $2.1B from $3.2B a year earlier as period charges fell, though higher-cost Intel 18A wafers reduced product profit.
The $14.2B buyout of Apollo's Ireland SCIP stake was funded with cash and $6.5B in new ; cash and short-term investments stood at $29.7B against $50.5B total debt.
rose 34.8% to $1.1B while was -$2.5B; H1 2026 operating cash flow was $8.1B versus $2.9B a year earlier.
What changed
Q1 2026 flagged the Ireland SCIP and $6.5B term loan against $32.8B liquidity: the $14.2B buyout closed, funded by cash and new , leaving $29.7B cash and short-term investments.
FY 2025 flagged Q1 2026 against 36.1% Q4 2025 as Intel 18A reserves evolve: Q1 was 39.4% and Q2 was 39.4%, with Q2 aided by lower period charges.
FY 2025 flagged Intel Foundry drag via the independent subsidiary plan: Q2 foundry loss narrowed to $2.1B from $3.2B a year earlier, continuing the narrowing from $2.4B in Q1.
Q1 2026 flagged Q2 against 39.4% as Gaudi and 18A charges evolve: Q2 held at 39.4% as $797M did not repeat.
Q1 2026 flagged after -$2.5B: Q2 free cash flow was -$2.5B, with H1 up to $8.1B from $2.9B.
What to watch
Intel Foundry next quarter after the $2.1B Q2 result to see if the independent subsidiary plan reduces drag further.
Q3 2026 against the 39.4% Q2 level as Intel 18A reserves and any Gaudi charges evolve.
trajectory after the -$2.5B Q2 figure under continued and the suspended .
Status of industry-wide supply constraints flagged as persisting into next year and limiting volume despite ASP gains.
Consolidated improved to 40.4% from 27.5% a year ago, benefiting from $1.5B in lower (including absence of $797M asset ) and higher product profit, partly offset by premium product mix costs.
Intel Foundry operating loss narrowed to $2.1B from $3.2B, helped by lower , but higher-cost Intel 18A wafers reduced product profit.
A $12.5B loss from the change in fair value of escrowed shares drove a consolidated net loss of $11.0B, while the $14.2B buyout of Apollo's stake in Ireland SCIP was funded with cash and $6.5B in new senior notes.
rose to $8.1B in H1 2026 from $2.9B a year ago, supported by higher and lower opex; total cash and short-term investments stood at $29.7B against $50.5B in total debt.
Supply constraints from industry-wide component shortages are expected to persist into next year, limiting ability to meet demand, while R&D and MG&A expenses are projected to decline in 2026 due to restructuring and Altera deconsolidation.
Quantitative and Qualitative Disclosures About Market Risk
We are affected by changes in currency exchange and interest rates, as well as equity and commodity prices. Our risk management programs are designed to reduce, but may not entirely eliminate, the impacts of these risks. For a discussion about market risk and sensitivity analysi…
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We are affected by changes in currency exchange and interest rates, as well as equity and commodity prices. Our risk management programs are designed to reduce, but may not entirely eliminate, the impacts of these risks. For a discussion about market risk and sensitivity analysis related to changes in currency exchange rates, interest rates, equity prices and commodity prices, refer to "Quantitative and Qualitative Disclosures About Market Risk" within MD&A in our 2025 Form 10-K.