Shares of the Santa Clara, Calif. company fell more than 2% in after-hours trading.
Intel reported earnings of $1.28 a share, compared with earnings of $1.14 a share a year ago. Revenue totaled $18.5 billion, up 2% from a year ago.
Analysts surveyed by FactSet were expecting earnings of $1.07 a share on revenue of $17.8 billion.
Intel said it now expects annual adjusted revenue of $73.5 billion, compared with its previous forecast of $72.5 billion and the FactSet consensus of $72.7 billion.
The company expects adjusted third-quarter revenue of about $18.2 billion, compared with the FactSet consensus of $18.1 billion.
The company's Client Computing Group, which includes chips for PCs, reported $10.1 billion in revenue, up 6% from a year ago. Chips for data centers, the company's second largest segment, posted $6.5 billion in sales, down 9% year-over-year.
“This is a pivotal year for Intel," CEO Pat Gelsinger said in a statement. "We are setting our strategic foundation and investing to accelerate our trajectory and capitalize on the explosive growth in semiconductors that power our increasingly digital world.”
Last week, the Wall Street Journal reported that Intel was considering a move to buy GlobalFoundries in a deal that could be valued at $30 billion.
TheStreet's Jim Cramer said that a potential deal between the two companies is unlikely to come to fruition because of the antitrust regulatory climate under President Joe Biden.
In April, Intel beat analysts' first-quarter estimates, but its guidance failed to meet expectations. The company hinted that investments in new manufacturing foundries would likely pressure near-term profit margins.