Intel posted Q2 revenue of $12.9 billion, a modest 0.2% increase from a year ago, but well above expectations for a sharp drop. Gains in the Data Center segment (+4%), Foundry services (+3%), and ‘Other’ revenues (+20%) offset a 3% decline in the Client Computing Group.
Intel Share Price saw an uptick following positive market sentiment. This was Intel’s most considerable dollar revenue beat in 3.5 years and its first year-over-year growth in five quarters. Analysts predict mixed results for Intel Stock ahead of the quarterly earnings release.
However, profit metrics were less encouraging. About $1 billion in one-time and non-cash charges related to excess tools and accelerated depreciation cut roughly eight percentage points from both GAAP and non-GAAP gross margins.
Even without these charges, margins were lower than last year. Intel swung to an adjusted operating loss, with a non-GAAP loss of $0.10 per share, missing break-even estimates.