AI Takeaway
Intel's Q2 FY2026 revenue grew 25.4% YoY to $16.13B with gross margin expanding sharply to 40.4%, but the company posted a massive net loss of $11.03B (EPS -$2.16), driven by items below the operating line since operating income was actually positive at $1.80B.
Revenue
$16.13B
++25.42% YoY
EPS (Basic)
$-2.16
-222.39% YoY
Gross Margin
40.4%
++12.81% YoY
Operating Income
$1.8B
++156.55% YoY
Filed · Source: SEC EDGAR 10-Q filing
Intel (INTC) reported Q2 FY2026 revenue of $16.13B, up 25.4% year over year. The company posted a net loss of $11.03B, with diluted EPS of -$2.16. Gross margin was 40.4%.
Revenue increased 25.4% YoY from $12.86B to $16.13B, while gross profit nearly doubled (+83.8%) to $6.51B as gross margin expanded from 27.5% to 40.4%, indicating improved cost efficiency or a favorable product/pricing mix relative to the prior-year period.
Source: 10-Q Income Statement (XBRL)
Operating income swung from a loss of $3.18B in the prior-year period to a profit of $1.80B, a 156.5% improvement, suggesting the core operating business stabilized even as R&D spending declined 8.6% to $3.37B.
Source: 10-Q Income Statement (XBRL)
Despite positive operating income, Intel reported a net loss of $11.03B, far worse than the prior-year net loss of $2.92B, implying significant non-operating charges, tax items, or impairments below the operating income line that are not detailed in the available data.
Source: 10-Q Income Statement (XBRL)
Cumulative year-to-date operating cash flow rose 183.0% to $8.10B from $2.86B, while financing activities used $8.55B in cash (a swing from +$0.59B in the prior-year period), reflecting substantial debt or capital-related outflows.
Source: 10-Q Cash Flow Statement (XBRL)
Long-term debt rose 10.3% YoY to $48.55B while stockholders' equity declined 10.6% to $87.54B, a combination that has pushed ROE to -12.6% for the trailing period measured.
Source: 10-Q Balance Sheet (XBRL)
Although revenue grew 25.4% YoY, Intel posted a net loss of $11.03B versus a $2.92B loss a year earlier, a 278% deterioration that is not explained by operating performance alone (operating income was positive at $1.80B). This disconnect points to potentially large one-off charges, impairments, or tax items that could recur or signal deeper balance sheet issues.
Source: 10-Q Income Statement (XBRL)
Long-term debt increased 10.3% YoY to $48.55B while stockholders' equity fell 10.6% to $87.54B, indicating the company is taking on more debt while its equity cushion shrinks. This combination increases financial risk and has driven ROE to -12.6%.
Source: 10-Q Balance Sheet (XBRL)
ROE of -12.6% and ROA of -5.5% indicate the company is currently generating negative returns on both shareholder equity and total assets, reflecting the impact of the large net loss on overall capital efficiency.
Source: 10-Q Key Ratios (XBRL)
Cumulative financing cash flow was -$8.55B compared to +$0.59B in the prior-year period, a swing of over $9B, suggesting substantial debt repayment, share buybacks, or other capital returns that could strain liquidity if operating cash generation slows.
Source: 10-Q Cash Flow Statement (XBRL)
Reported EPS of $0.42 versus the $0.22 analyst consensus — a +93.7% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $16.13B | $12.86B | +25.42% |
Cost of Revenue | $9.62B | $9.32B | +3.24% |
Gross Profit | $6.51B | $3.54B | +83.77% |
Operating Income | $1.8B | $-3.18B | +156.55% |
Net Income | $-11.03B | $-2.92B | -278.10% |
EPS (Basic) | $-2.16 | $-0.67 | -222.39% |
EPS (Diluted) | $-2.16 | $-0.67 | -222.39% |
R&D Expense | $3.37B | $3.68B | -8.58% |
SG&A Expense | $1.18B | $1.14B | +2.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $202.44B | $192.52B | +5.15% |
Current Assets | $57.21B | $43.38B | +31.90% |
Current Liabilities | $35.67B | $34.97B | +2.01% |
Stockholders' Equity | $87.54B | $97.88B | -10.56% |
Cash & Equivalents | $12.87B | $9.64B | +33.51% |
Long-Term Debt | $48.55B | $44.03B | +10.27% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $8.1B | $2.86B | +182.99% |
Investing Cash FlowYTD | $-669M | $-2B | +66.63% |
Financing Cash FlowYTD | $-8.55B | $586M | -1558.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 40.4% | 27.5% | +12.81% |
Operating Margin | 11.1% | -24.7% | +35.83% |
Net Margin | -68.4% | — | — |
ROE | -12.6% | — | — |
ROA | -5.5% | — | — |
Current Ratio | $1.604 | — | — |
Expected release date, analyst estimates & what to watch
Intel reported Q1 2026 revenue of $13.6B (+7.2% YoY) but swung to a deep operating loss of -$3.1B and net loss of -$3.7B, reflecting heavy restructuring and impairment charges that overwhelmed improving gross margins.
Intel's FY2025 10-K shows near-breakeven net income of -$267M (a dramatic improvement from -$18.8B in FY2024) driven by aggressive cost cuts in R&D and SG&A, even as revenue edged down 0.5% to $52.9B and the company continued to post negative operating margins.
Other companies in Semiconductors
The filing data provided does not include analyst estimates or consensus figures, so a beat/miss comparison cannot be confirmed from this data. What is confirmed is that revenue grew 25.4% YoY to $16.13B and operating income turned positive at $1.80B, while net income showed a larger loss of $11.03B compared to $2.92B a year earlier.
Intel grew revenue 25.4% YoY to $16.13B and expanded gross margin to 40.4% from 27.5%, with operating income swinging to a $1.80B profit from a $3.18B loss. However, net loss deepened to $11.03B (EPS -$2.16) from a $2.92B loss a year earlier, driven by factors below the operating income line not detailed in the available data.
While Intel's revenue rose 25.4% to $16.13B and operating income was positive at $1.80B, the company still posted a net loss of $11.03B. This indicates significant non-operating charges, impairments, or tax-related items below the operating income line that are not itemized in the provided financial data.
Intel's current ratio stood at 1.60, indicating adequate short-term liquidity, and cash & equivalents rose 33.5% YoY to $12.87B. However, long-term debt increased 10.3% to $48.55B while stockholders' equity fell 10.6% to $87.54B, showing rising leverage.
Based on the financial data, key risks include a large net loss of $11.03B despite positive operating income, rising long-term debt (+10.3% to $48.55B) alongside declining equity (-10.6% to $87.54B), and negative return metrics with ROE at -12.6% and ROA at -5.5%.