Intel · Q2 2021 earnings

Briefing

Intel's Q2 2021 financial results were reported, revealing flat GAAP revenue and increased non-GAAP revenue, both exceeding guidance. EPS also surpassed expectations, and full-year guidance was raised.

Intel reported second-quarter GAAP revenue of $19.6 billion, flat year over year, and non-GAAP revenue of $18.5 billion, up 2% year over year, exceeding April guidance by $700 million. GAAP earnings per share (EPS) was $1.24, and non-GAAP EPS was $1.28, which exceeded April guidance by $0.23. The company is raising full-year 2021 guidance, now expecting GAAP revenue of $77.6 billion and non-GAAP revenue of $73.5 billion; GAAP EPS of $4.09 and non-GAAP EPS of $4.80.

• Second-quarter GAAP revenue was $19.6 billion, flat year over year, while non-GAAP revenue reached $18.5 billion, a 2% increase year over year and $700 million above guidance.
• GAAP EPS for the second quarter was $1.24; non-GAAP EPS was $1.28, exceeding April guidance by $0.23.
• Q2 guidance for revenue, EPS, and gross margin were exceeded; record Q2 revenue was achieved in PC and Mobileye businesses.
• Full-year 2021 guidance was raised, with GAAP revenue now expected to be $77.6 billion and non-GAAP revenue at $73.5 billion; GAAP EPS is projected at $4.09 and non-GAAP EPS at $4.80.

Headline financials

Revenue & EPS history

Intel's guidance for the third quarter includes GAAP revenue of approximately $19.1 billion and non-GAAP revenue of approximately $18.2 billion. The gross margin is expected to be 53% (GAAP) and 55% (non-GAAP), with a tax rate of 4%. Earnings per share are projected at $1.08 (GAAP) and $1.10 (non-GAAP). For the full year, revenue is expected to be approximately $77.6 billion (GAAP) and $73.5 billion (non-GAAP), with gross margin at 54.2% (GAAP) and 56.5% (non-GAAP), and a tax rate of 16% (GAAP) and 11% (non-GAAP). Earnings per share are estimated at $4.09 (GAAP) and $4.80 (non-GAAP). Full-year capital spending is projected to be $19.0-20.0 billion, with free cash flow at $11.0 billion.