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Intel INTC Q2 Earnings report Lip-Bu Tan
Intel CEO Lip-Bu Tan (Andrej Sokolow/Getty Images)

Intel tumbles as pleas for time to deliver its turnaround fall on deaf ears

Traders had little patience for Intel after the stock’s hot start to 2026 saw it gain nearly 50% coming into the print.

Luke Kawa, Matt Phillips

Intel is tumbling after asking for patience to execute a turnaround plan that traders had already aggressively been pricing in.

The US chipmaker delivered stronger-than-expected Q4 results, but dropped after its Q1 guidance came in light of Wall Street estimates. Shares extended declines during Intel’s conference call to trade down 13% as of 7:30 a.m. ET.

“We are on a multiyear journey,” said Intel CEO Lip-Bu Tan, which will “take time and resolve.”

That time and resolve is something that long-term investors might have the stomach for, though the same can’t be said of the hot money that’s recently poured into Intel, some of which seems to be on its way out. Had January ended yesterday, Intel would have enjoyed its second-best month of all time (behind October 1987).

“For a stock up 47% in three weeks (mostly on vibes and tweets) the print had to be perfect; it was not,” Bernstein analyst Stacy Rasgon wrote. “And while the things driving investors crazy (server refresh hopes, 18A ramp, potential for 14A customers etc) are still there in theory, it appears Intel’s hips do, in fact, lie. Yes the server cycle seems real, but the company appears to have woefully misjudged it with their capacity footprint caught massively off-guard.”

Intel wasn’t able to offer concrete progress on any new customer wins. For the chipmaker’s 14A advanced manufacturing process, the CEO said, “We believe customers will begin to make firm supplier decisions starting in the second half of this year and extending into the first half of 2027.”

Management attributed the soft Q1 outlook to supply constraints, which it expects will be the biggest headache in the current quarter and will turn a corner thereafter.

During the call, Bernstein’s Rasgon questioned whether this issue wasn’t self-inflicted, particularly when it comes to data center customers.

“You guys have your own factories — why are you in the inventory situation that you’re in?” he asked on the conference call. “You have $11.6 billion of inventory, and yet it’s not in the right place at the right time to ship. How does that happen?

Intel upped its outlook for 2026 capex to “flat to down slightly” from “down,” as the chipmaker aims to boost capacity to be able to meet robust demand.

Even with the post-earnings tumble, the stock remains an exceptional performer over the past month and year.

But while the recent price action suggested Intel’s turnaround was a fait accompli, the story from management and Wall Street is that it’s far from a foregone conclusion.

“Foundry economics/scale will likely remain challenged at least through the end of the decade,” wrote JPMorgan analyst Harlan Sur. “In sum, we still view Intel as being at risk of further share loss in its product businesses (particularly in server CPU given AMD’s strong product portfolio/roadmap and Intel’s supply constraints), with a largely unproven external Foundry business that (so far) has seen very limited traction with customers.”

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Boeing reports better-than-expected Q1 earnings, revenue

Plane maker Boeing reported its first-quarter earnings before the market opened on Wednesday. Its shares climbed more than 3% in premarket trading.

For Q1, Boeing reported:

  • Adjusted loss of $0.20 per share, compared to the loss of $0.68 per share expected by Wall Street analysts polled by FactSet.

  • Revenue of $22.22 billion, compared to estimates of $21.85 billion.

Boeing reported negative $1.45 billion in free cash flow in Q1, compared to the negative $2.34 billion expected by Wall Street. Prior to Wednesday, Boeing had reported two consecutive quarters of positive FCF following six straight quarters of negative results. The company is still guiding for full-year FCF of between $1 billion and $3 billion.

Earlier this month, Boeing announced it had delivered 143 commercial jets in Q1, up 10% from the same period last year and ahead of rivalAirbus, which delivered 114. This was Boeing’s first time out-delivering Airbus since 2018.

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GE Vernova, top AI energy play, rises after Q1 report

GE Vernova, a maker of power plant equipment that’s seen orders tied to data centers surge, rose early Wednesday after posting strong Q1 results and lifting full-year sales guidance. The GE spinoff reported:

  • Adjusted EBITDA of $896 million vs. the $772 million estimate from analysts polled by FactSet.

  • Total revenue of $9.34 billion vs. the $9.25 billion consensus expectation from analysts polled by FactSet.

  • Full-year 2026 sales guidance that was lifted to between $44.5 billion and $45.5 billion vs. prior guidance of between $44 billion and $45 billion, and consensus of $44.64 billion.

“In the quarter, our electrification segment booked $2.4 billion in equipment orders to support data centers, more than all of last year” said CEO Scott Strazik.

GE Vernova is up some 600% over the last two years through Tuesday’s close, but the majority of those gains were booked by August 2025. After being largely range-bound for months, the stock busted out following the company’s last earnings report, lifting the shares up nearly 50% in 2026.

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Vertiv drops after offering uninspiring Q2 guidance, overshadowing solid Q1 beat

Shares of Vertiv Holdings dropped as much as ~6% in early trading on Wednesday after the data center equipment’s better-than-expected Q1 numbers were overshadowed by uninspiring guidance.

For the quarter ended, March 31, 2026, Vertiv reported:  

  • Q1 adjusted earnings per share of $1.17 vs. the $1.00 consensus expectation from analysts surveyed by FactSet.

  • Sales of $2.65 billion vs. the $2.64 billion expectation (compiled by FactSet).

  • For Q2, Vertiv expects adjusted earnings of between $1.37 and $1.43, coming in below the $1.43 consensus estimate at its midpoint.

  • Q2 guidance for Vertiv net sales of $3.25 billion to $3.45 billion also vs. Wall Street’s call for $3.40 billion.

Vertiv, which listed in February 2020 as a result of GS Acquisition Holdings Corp., a so-called blank-check company, merging with private equity-owned Vertiv Holdings, has soared over 300% over the last year through Tuesday’s close, as investors have rushed to snap up shares of companies poised to collect some of the hundreds of billions of dollars in spending that the hyperscalers are pouring into the data center build-out. 

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Adobe rises on $25 billion stock buyback

Adobe was up as much as 3.5% in early trading on Wednesday after the company announced a share repurchase plan worth up to $25 billion, signaling to investors that company management sees retiring shares as a prudent use of capital at these levels. The stock has been down more than 60% since Feb 2024, largely on concerns that AI tools will disrupt the company’s business.

The new authorization, which Adobe detailed will extend through April 30, 2030, “is a direct expression of confidence in our robust cash flow and the long-term value we are delivering to investors,” said CFO Dan Durn in a press release.

Indeed, fears that new agentic models could affect demand compounded when Anthropic unveiled Claude Design last week, sending the company’s shares down on the announcement. Adobe released a series of AI-enabled customer service functions shortly after. Rival Figma, which Adobe was set to acquire before the deal was blocked by regulators, has also been under pressure.

Adobe is also not the only spooked software company proposing new buyback plans to bring investors back, joining Salesforce, which actually issued debt to buy back shares in a programme of the same size ($25 billion).

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United beats Q1 earnings and revenue estimates, lowers full-year profit guidance amid surging jet fuel prices

United Airlines reported its first-quarter earnings results after the bell on Tuesday. The carrier’s shares ticked down in after-hours trading.

For Q1, United reported:

  • Adjusted earnings of $1.19 per share, compared to the Wall Street estimate of $1.08 per share compiled by FactSet.

  • $14.6 billion in revenue, compared to the $14.39 billion consensus estimate.

In the first quarter, United’s fuel expense grew 12.6% from the same period last year to $3.04 billion.

For the second quarter, United expects adjusted earnings per share of between $1 and $2, shy of Wall Street expectations of $2.08. For the full year ahead, United said it expects earnings between $7 and $11 per share, compared to its prior guidance of between $12 and $14 per share.

“Guidance assumes United’s revenue recovers 40% to 50% of the fuel price increases in the second quarter, 70% to 80% of the fuel price increases in the third quarter and 85% to 100% of the fuel price increases in the fourth quarter 2026,” read the company’s investor update.

Earlier this month, United was among the first major US airlines to hike its bag fees amid higher fuel costs. Its shares have fallen more than 15% from a February high days before the war in Iran began.

United has also made waves this month following reports that CEO Scott Kirby had floated the idea of a merger with American Airlines to President Trump. A merger between two of the big four airlines would create a true US behemoth, controlling more than a third of the American market. American Air last week said it wasn’t interested in merging with United and hadn’t held talks on the idea. On Tuesday, Trump told CNBC that he doesn’t like the idea either.

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