Non-cash accounting charges mask Intel’s underlying profitability, with adjusted net income reaching $2.2 billion in Q2.
Intel’s stock climbed to $91.13 Thursday, rising 11.3% amid a sector rebound, despite reporting a $11.3 billion net loss over the past year. The losses stem largely from non-cash accounting adjustments rather than operational performance.
In Q2 2026, revenue grew 25% year-over-year to $16.1 billion, yet a $12.5 billion mark-to-market charge on escrowed shares drove a $11.0 billion net loss. Adjusted net income reached $2.2 billion, following $1.5 billion in Q1, signaling underlying profitability.
The company’s gross margin has expanded quarterly, with revenue growth at its fastest pace in over 15 years. Analysts project Intel could return to annual profitability by 2027 as accounting distortions ease.