Intel Posts Strong Earnings Beat but Stock Falls on Rising Spending and Softer Profit Outlook

Intel reported Q2 2026 non-GAAP earnings of $0.42 per share, nearly double the $0.22 consensus estimate, on revenue of $16.1 billion, beating the $14.7 billion forecast. Despite the strong beat, shares fell 7.9% in the next trading session after initially rising 11% in after-hours trading. The sell-off was driven by Intel's raised 2026 capital budget to over $20 billion, a softer Q3 profit guidance of $0.38 per share, and a $2.1 billion loss in its foundry business. Data-center revenue surged 59% year-over-year to $6.3 billion, with AI-driven lines now near 70% of total revenue. The market is pricing high implied volatility of 83%, reflecting uncertainty over whether Intel's heavy spending on growth will translate into durable profits.