Intel Stock Drops Despite Strong Earnings Beat
On Friday, Intel (INTC) stock fell nearly 5% despite reporting better-than-expected second-quarter earnings. The company earned $0.42 per share on a pro forma basis and reported revenue of $16.1 billion—well above analyst expectations. However, the market reacted negatively due to a significant GAAP loss of $2.16 per share for the quarter. Investors were also concerned by Intel's continued cash burn despite signs of operational improvement such as rising gross margins (up nearly 13 percentage points) and positive free cash flow ($1.9 billion). While CEO Lip-Bu Tan highlighted strong AI-driven demand, analysts remain skeptical about whether these improvements will translate into sustained profitability. The mixed financial results—strong non-GAAP performance but a poor GAAP result—led to investor uncertainty, contributing to the stock's decline.
Tickers: $INTC
Topics: GAAP vs. non-GAAP results Intel Q2 earnings stock price reaction