Intel NASDAQ:INTC shares climbed more than 4% in after-hours trading Thursday after the chipmaker reported second-quarter results that topped its own guidance and issued a third-quarter outlook that also exceeded Wall Street expectations.
The company also increased its 2026 capital spending forecast to more than $20 billion as it continues expanding manufacturing capacity to meet AI-related demand, according to Thursday's earnings release.
Intel reported second-quarter revenue of $16.1 billion, non-GAAP earnings of $0.42 per share and a non-GAAP gross margin of 41.8%. Operating cash flow reached $7 billion, while cash and short-term investments totaled about $30 billion. The company said stronger product demand continued to outpace available supply.
For the third quarter, Intel expects revenue of $15.8 billion to $16.8 billion and non-GAAP earnings of $0.38 per share, with a gross margin of about 42%. The company said it continues to target roughly $16.5 billion in non-GAAP operating expenses for the full year.
Intel raised its 2026 capital expenditure outlook to more than $20 billion, compared with its earlier expectation for spending to remain roughly flat from last year. Management said the additional investment reflects improving customer demand across its businesses and will support manufacturing, advanced packaging and capacity expansion.
Chief Executive Lip-Bu Tan said Intel's production lines for Intel 7, Intel 3 and Intel 18A exceeded internal volume targets during the quarter as manufacturing yields improved. The company also began risk production of Intel 18A-P and said it remains on schedule for Intel 14A risk production in the second half of 2027, with high-volume manufacturing targeted for 2028.