Intel Corporation reported second-quarter results on July 23 that surpassed analyst expectations across multiple metrics. Revenue increased 25.4% year-over-year and came in 11.6% above consensus forecasts, with particularly strong performance in foundry production and data center products driven by artificial intelligence-related demand.
Earnings on a non-GAAP basis rose over 100% to $0.42 per share, exceeding the $0.20 analyst expectation. After accounting for a one-time payment related to acquiring full control of an Ireland fabrication facility, the company generated positive free cash flow of $4.45 billion in the quarter, representing 27.59% of quarterly revenue. Over the trailing 12 months, free cash flow reached $2.83 billion, or approximately 5% of revenue.
Management provided an optimistic forward outlook, projecting third-quarter earnings per share of $0.38, substantially higher than the prior year’s $0.23. In response to the strong results and guidance, analysts increased their 2027 revenue forecasts to $70 billion from the previous estimate of $66.17 billion. The stock declined approximately 4.6% on July 24, closing at $92.32 after an initial after-hours gain, with the price having fallen over one-third from a June 22 peak of $140.94.
The average analyst price target rose to $108.62 from 47 analysts following the earnings announcement. Some valuation analyses suggested the stock could reach $118 per share based on projected free cash flow margins and comparative yield metrics, representing potential upside of approximately 28% from the July 24 closing price.
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