Will Higher Processor Revenues Boost Intel's Q2 Earnings?

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Will Higher Processor Revenues Boost Intel's Q2 Earnings?

Intel Corporation INTC is scheduled to report second-quarter 2026 earnings after the closing bell on July 23. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Client Computing Group (CCG) segment backed by AI PC adoption, innovative product launches and the enterprise PC refresh cycle.

Factors at Play

CCG is the company’s largest segment and accounts for the lion’s share of total revenues. It includes computer CPUs, several server boards, form factor systems and graphic products

During the quarter, Intel introduced Core Series 3 processors, boosting everyday computing with improved performance and efficiency. The new chips target mainstream users, offering better speed, responsiveness, and power optimization. This has strengthened Intel’s position in the entry-level PC market and is driving broader client computing demand.

Intel launched Arc G-Series processors, a new family of handheld gaming processors built on the Intel Core Ultra Series 3 (Panther Lake) architecture. The processors are designed to deliver higher gaming performance, improved power efficiency and longer battery life for next-generation handheld gaming devices. Intel highlighted upcoming systems from partners including Acer, MSI and OneXPlayer. These developments are likely to have supported the CCG segment’s top line during the quarter.

In the quarter under review, Intel joined forces with ChatPPT to launch a Hybrid AI PC Edition, marking a strategic move toward on-device intelligence. The partnership aims to deliver faster, secure, and efficient AI experiences by combining cloud and local processing capabilities for users worldwide. Such collaborations are expected to drive innovation and propel user growth.

Overall Expectations

The Zacks Consensus Estimate for CCG revenues is pegged at $7.96 billion, indicating an improvement from $7.87 billion in the year-ago quarter.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $13.43 billion, which indicates a increase from the year-ago quarter’s reported figure of $11.81 billion. The consensus estimate for EPS is pegged at 21 cents per share, indicating an increase from a loss of 10 cents per share.

Earnings Whispers

Our proven model predicts a likely earnings beat for Intel for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter

Intel currently has an ESP of +5.18% with a Zacks Rank #1. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Intel Corporation Price and EPS Surprise

Intel Corporation Price and EPS Surprise

Intel Corporation price-eps-surprise | Intel Corporation Quote

Other Stocks to Consider

Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:

Silicon Motion Technology Corporation SIMO has an Earnings ESP of +7.68% and sports a Zacks Rank #1 at present. It is set to release its second-quarter 2026 numbers on July 29. 

The Earnings ESP for Celestica Inc. CLS is +1.86%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on July 27.

The Earnings ESP for Monolithic Power Systems, Inc. MPWR is +1.08%, and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 numbers on July 30.

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Intel Corporation (INTC): Free Stock Analysis Report
 
Celestica, Inc. (CLS): Free Stock Analysis Report
 
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report
 
Silicon Motion Technology Corporation (SIMO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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