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Intel Corporation reported stronger-than-expected first-quarter financial results and a higher second-quarter revenue forecast. The company reported earnings and revenue above market expectations, supported by stronger performance in data center and AI-related products.
Investors also reacted to improved demand signals and updated guidance, pushing the stock higher in early trading. Shares moved more than 25% after the release as investors reacted to improved financial performance and forward outlook.
Intel posted adjusted earnings per share of $0.29 for the first quarter, compared with analyst expectations of $0.01. Revenue reached $13.6 billion, above the forecast of $12.36 billion. In the same quarter last year, the company reported revenue of $12.67 billion and EPS of $0.13, showing year-on-year growth.
The company’s results were supported by higher demand across server and client computing products. Data from Bloomberg consensus showed expectations were surpassed on both revenue and profit lines. Following the report, Intel shares increased by nearly 30% in early trading, reflecting strong investor reaction to the earnings release and forward guidance.
Intel also provided a second-quarter revenue forecast between $13.8 billion and $14.8 billion. Analysts had estimated around $13.03 billion, placing the outlook above expectations. The company noted continued strength in data center demand and improved sales across multiple product categories.
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Intel’s Data Center and AI division generated approximately $5.1 billion in revenue during the quarter, exceeding analyst expectations of $4.41 billion. The segment recorded double-digit growth compared with the previous year, supported by demand from cloud providers and enterprise clients.
The company stated that artificial intelligence workloads are increasing the need for CPU-based systems. These workloads include AI agent operations, data retrieval tasks, and enterprise computing functions. Intel CEO Lip-Bu Tan said, “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.”
He added, “This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” The company also reported stronger adoption of Xeon processors and Gaudi AI accelerators across data center customers.
Intel secured several agreements during the quarter. The company entered a partnership with Elon Musk’s Terafab project, which is expected to support chip production for SpaceX, xAI, and Tesla. It also signed a multiyear agreement with Google to supply Xeon CPUs for AI and cloud workloads. These deals expanded Intel’s position in enterprise and hyperscale computing markets.
The company also announced plans to repurchase a 49% stake in a fabrication facility previously sold to Apollo for $11.2 billion. The repurchase value is set at $14.2 billion, marking a shift in its manufacturing strategy. Intel also continues restructuring efforts that include workforce reductions and consolidation of production sites.
The company continued restructuring efforts carried out in recent years, including workforce reductions and consolidation of factory operations. Furthermore, Industry data from International Data Corporation projected global PC shipments to decline 11.3% in 2026, although revenue may grow due to higher prices. Intel also noted supply constraints in parts of its business as demand continues to outpace production capacity in selected segments.
