Intel Q2 revenue jumps 25% to $16.1 billion on AI and data centre surge
Synopsis
Intel's Q2 numbers tell a story of two realities: a non-GAAP profit of $2.2 billion and record server growth powered by AI, set against an $11 billion GAAP net loss. The Xeon 6's rapid ramp and the Intel 18A-P entering risk production signal that the turnaround has momentum — but the widening GAAP loss shows the cost of getting there is still steep.
Key Takeaways
Intel posted Q2 revenue of $16.1 billion , up 25% year-on-year, beating analyst estimates of $15.1 billion .
Non-GAAP net income reached $2.2 billion ( 42 cents per share ), versus a $400 million loss a year earlier.
GAAP net loss widened to $11 billion , compared with $2.9 billion in the year-ago period.
The Xeon 6 processor drove record year-on-year server segment growth amid rising enterprise AI demand.
Intel's 18A-P foundry process entered risk production, a key milestone for attracting external customers.
Intel announced a 5 billion euro capacity expansion and held ~$40 billion in total liquidity at quarter-end.
Intel posted stronger-than-expected second-quarter results, with revenue climbing 25% year-on-year to $16.1 billion for the quarter ended June 2025, fuelled by surging demand for artificial intelligence (AI)-powered computing, data centre processors, and foundry services. The figure comfortably exceeded both the company's own guidance and analyst consensus estimates of around $15.1 billion, up from $12.9 billion in the same period a year earlier.
Profitability: A Mixed Picture
On a non-GAAP basis, Intel reported a net income of $2.2 billion, or 42 cents per share, a sharp reversal from a loss of $400 million in the year-ago quarter. However, on a GAAP basis, the company recorded a net loss of $11 billion — significantly wider than the $2.9 billion GAAP loss reported a year earlier — reflecting ongoing restructuring charges and investment costs.
Xeon 6 and Server Business Break Records
Intel's server segment delivered its strongest year-on-year growth on record, with the Xeon 6 processor emerging as one of the fastest-ramping products in the chipmaker's history. Rising enterprise demand for AI workloads has been the primary catalyst, as businesses accelerate infrastructure upgrades to support large-scale AI deployments.
Intel CEO Lip-Bu Tan said: 'AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and wafer foundry network.'
Intel Foundry Gains Momentum
The company's Intel Foundry division also made notable strides during the quarter. Its Intel 18A-P process entered risk production — a critical milestone that strengthens Intel's bid to attract external chip customers and compete with rivals such as TSMC in the contract manufacturing space. Intel is simultaneously scaling investments in manufacturing equipment, clean-room capacity, and semiconductor substrates to meet projected AI-driven demand.
Capital Commitments and Liquidity
Intel separately announced a 5 billion euro investment to expand production capacity for Xeon processors and next-generation chips. The company closed the quarter with nearly $30 billion in cash and total liquidity of approximately $40 billion, providing a substantial buffer as it funds its manufacturing transformation. The strong liquidity position is seen as critical to sustaining the capital-intensive foundry buildout over the coming years.
Point of View
But the $11 billion GAAP loss demands scrutiny — it reflects the enormous cost of rebuilding a foundry business from the ground up while simultaneously competing in CPUs and AI accelerators. The Xeon 6 ramp is genuinely impressive, yet Intel remains a distant third in AI silicon behind Nvidia and AMD. The 18A-P entering risk production is a milestone, but risk production is not volume production; TSMC's lead in advanced nodes remains substantial. The $5 billion euro manufacturing commitment signals conviction, but Intel has made large capital pledges before that were subsequently scaled back. The real test is whether external foundry customers — the ones Intel needs to justify its fab investments — will commit at scale once 18A-P moves past the risk phase.
NationPress
27 Jul 2026
Frequently Asked Questions
What were Intel's Q2 2025 revenue results?
Intel reported Q2 revenue of $16.1 billion, a 25% increase year-on-year, beating analyst estimates of around $15.1 billion. The growth was driven by strong demand for AI computing, data centre processors, and foundry services.
Why did Intel report a large GAAP net loss despite strong revenue?
Intel posted a GAAP net loss of $11 billion in Q2, wider than the $2.9 billion loss a year earlier, primarily due to restructuring charges and the heavy capital costs associated with its foundry transformation. On a non-GAAP basis, which strips out these items, the company was profitable at $2.2 billion.
What is the Intel 18A-P process and why does it matter?
Intel 18A-P is the company's most advanced semiconductor manufacturing process, which entered risk production during Q2. It is central to Intel's strategy to attract external chip customers and compete with TSMC in the contract foundry market.
What is driving Intel's server business growth?
Intel's server segment recorded its strongest year-on-year growth on record, led by the Xeon 6 processor. Rising enterprise demand for AI workloads — requiring high-performance data centre chips — has been the primary driver.
How much is Intel investing in manufacturing expansion?
Intel announced a 5 billion euro investment to expand production capacity for Xeon processors and next-generation chips. The company also ended Q2 with nearly $30 billion in cash and total liquidity of about $40 billion to fund this buildout.
