INTC · Q2 FY2026
INTEL CORP Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $16.13B | $12.86B (Q2 FY2025 yr ago) | Beat |
| EPS | -$2.16 | -$0.67 (Q2 FY2025 yr ago) | Miss |
| Free Cash Flow | $4.45B | -$1.50B (Q2 FY2025 yr ago) | Beat |
| Gross Margin | 40.4% | 27.5% (Q2 FY2025 yr ago) | Beat |
| Operating Margin | 11.1% | -24.7% (Q2 FY2025 yr ago) | Beat |
What changed
Revenue increased 25.4% year over year to $16.13B, while gross margin rose 12.9 percentage points and operating margin improved 35.8 points. Free cash flow swung to positive $4.45B, but EPS deteriorated to -$2.16 and net debt increased by $9.89B sequentially to $35.67B.
Impact on the investment thesis
With no prior SageNoodle valuation, we establish base-case fair value at $52 per share. The operating recovery is material, but the unexplained gap between positive operating income and a $11.03B net loss, weak trailing returns and the $100.32 share price keep the valuation case unfavorable.