Intel stock falls nearly 8% despite big Q2 earnings beat - Yahoo Finance

What the report says

Yahoo Finance reported that Intel shares dropped almost 8% on Friday, July 24, 2026, even after the chipmaker delivered stronger-than-expected second-quarter results following Thursday’s market close. The stock had initially risen nearly 13% in after-hours trading, but those gains reversed as investors weighed Intel’s plan to raise capital spending to more than $20 billion in 2026, compared with about $18 billion previously.

According to the report, Intel posted adjusted earnings of $0.38 per share on revenue of $16.1 billion, ahead of Wall Street expectations for $0.21 per share and $14.43 billion in revenue. The company also guided for third-quarter revenue of $15.8 billion to $16.8 billion, above the $15.06 billion analysts had projected. Data center revenue reached $6.3 billion, while client computing revenue came in at $8.9 billion, both topping cited estimates.

Intel CFO Dave Zinsner attributed the quarter’s performance to strong demand, better execution and factory improvements, while saying the company is increasing investments in equipment, clean room space and substrates to support expected growth in products and foundry operations. Yahoo Finance also noted that Intel had confirmed layoffs in its data center group earlier in the week as part of a broader efficiency push.

The move matters because Intel is attempting a major turnaround under CEO Lip-Bu Tan while positioning itself for AI-related demand and foundry opportunities. Yahoo Finance cited Intel’s sharp year-to-date stock rise, government and Nvidia-related investment, and reports of potential large customers such as Google, while also noting risks from higher memory and storage costs affecting the PC market.