Shares of Intel (INTC) soared in after-hours trading after the chipmaker reported earnings for its first quarter of Fiscal Year 2026. Earnings per share came in at $0.29, which beat analysts’ consensus estimate of $0.02 per share. Meanwhile, sales increased year-over-year, with revenue hitting $13.58 billion. This beat analysts’ expectations of $12.42 billion.
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New trading tool for TSLA bearsIts Client Computing Group saw a 1% increase in revenue to $7.7 billion, while its Data Center and AI segment grew by 22% to $5.1 billion. In addition, Intel’s Foundry business rose by 16% to $5.4 billion, and the “All Other” category plunged by 33% to $600 million. However, it’s worth noting that Intel’s main revenue-generating segments have declined over the past decade, as per the image below from Main Street Data.
Intel’s Business Highlights
In addition, Intel expanded its product offerings across desktops, laptops, and enterprise systems, while placing more focus on AI and cloud infrastructure. The company also strengthened key partnerships, which include a multiyear deal with Google (GOOGL) to deploy Xeon processors and co-develop AI-focused infrastructure.
At the same time, Intel is working with companies like SambaNova and taking part in projects with SpaceX and Tesla (TSLA) to improve chip technology. It is also increasing production capacity in Malaysia to keep up with rising demand and to make its supply chain more reliable. Finally, Intel bought back a minority stake in its Ireland facility, which shows confidence in its financial position and in the long-term importance of its processors in the AI era.
Intel’s Q1 2026 Outlook
Looking forward, management has provided the following guidance for Q2 2026:
- Revenue between $13.8 billion and $14.8, versus estimates of $13.06 billion
- EPS of $0.20 compared to expectations of $0.08
As you can see, guidance was much better than expected, which also contributed to the stock’s after-hours move.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on seven Buys, 23 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average INTC price target of $56.41 per share implies 15.5% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
