Intel Corporation
INTC · Nasdaq
Dec 2026
Next quarter
Expected to report Jan 21, 2027 — estimated from last year’s reporting date.
Consensus is $0.64 EPS for Dec 2026 across 1 estimates, ranging $0.64 to $0.64.
INTC Sep 2026
- 46.43%
- -28.58%
- $0.28
- $0.41
- —
- $16.51B
Reported results
- $16.51B
- 42.97%
- $2.52B
- 15.27%
- $3.32B
- $0.60
Highlights
- Revenue and earnings: Q3 revenue was $16.51B, up 21% year over year and 2% from Q2; GAAP diluted EPS was $0.60 and non-GAAP diluted EPS was $0.52. On the supplied consensus basis, EPS of $0.41 beat $0.28 by 46.4%.
- Data Center and AI: DCAI revenue reached $7.3B, up 78% year over year and 17% sequentially, as server CPU demand outstripped available supply; segment operating profit was $3.0B.
- Client weakness: CCPG revenue was $8.1B, down 5% year over year and 9% sequentially, as higher memory prices and constrained IT budgets weakened PC demand.
- Q4 outlook: Intel forecast revenue of $15.0B–$16.0B, with non-GAAP EPS of $0.25 and non-GAAP gross margin of 38.0%, down from 44.1% in Q3. The outlook includes an estimated $300M revenue and 200-basis-point gross-margin impact from the Israel factory incident.
- Margins improved in Q3: GAAP gross margin rose to 43.0% from 38.2% a year earlier; non-GAAP gross margin was 44.1%, about 200 basis points above Q2. GAAP operating income was $2.52B versus $683M a year ago.
- Foundry progress, but losses persist: Intel Foundry revenue was $6.7B, up 58% year over year, while its operating loss narrowed to $1.85B. Management cited lower process costs and improving Intel 3 and 18A yields.
- Capital and liquidity: Intel raised $22.6B net from its August public offering and ended Q3 with about $54B in cash and short-term investments. It generated $5.1B in operating cash flow and $1.6B in adjusted free cash flow.
- Investment ahead: 2026 gross capital expenditure remains planned at $20B; management expects 2027 spending to rise strongly and does not expect positive free cash flow next year.
Analysis
Intel’s Q3 combined a strong server-led beat with a worsening PC downturn and a much weaker near-term outlook. Revenue of $16.51B rose 21% year over year and 2% sequentially. GAAP diluted EPS was $0.60, versus $0.90 a year earlier and a loss of $2.16 in Q2; non-GAAP EPS of $0.52 was up from $0.23 a year ago. The supplied consensus comparison lists EPS of $0.41 against $0.28 expected, a 46.4% beat; the release separately presents the GAAP and non-GAAP figures. Intel said revenue, gross margin and EPS exceeded its guidance, helped by stronger server output and disciplined spending.
The defining driver was DCAI, where revenue surged 78% year over year to $7.3B, while CCPG fell 5% to $8.1B as memory costs and limited IT budgets pressured PCs. Improving factory costs and product mix lifted non-GAAP gross margin to 44.1%, about 200 basis points above Q2. But Q4 guidance points to a sharp step down: revenue of $15B–$16B, non-GAAP gross margin of 38% and non-GAAP EPS of $0.25, including an estimated $300M revenue impact from the Israel factory shutdown. Intel also raised substantial equity capital to fund capacity expansion; management expects heavy investment and no positive free cash flow in 2027.
Server CPU demand
- DCAI growth: Revenue was $7.3B, up 78% year over year and 17% sequentially; management described it as the segment’s strongest revenue growth in 15 years. Operating profit reached $3.0B, or 42% of segment revenue.
- Supply remains the limiter: Output improved, but Intel said demand continues to materially exceed supply. Advanced substrate availability and Intel 3 capacity constrain shipments, with more substrate capacity expected to arrive in the second half of 2027.
- Product momentum: Granite Rapids became Intel’s largest server product family, and Clearwater Forest began shipping for revenue. Purpose-built silicon revenue rose more than 50% sequentially and more than doubled year over year.
- Market outlook: Intel expects industry server CPU unit growth above 30% in both 2026 and 2027, with growth higher if more supply were available. Management expects DCAI to grow next year, though supply constraints should be more acute in the first half.
PC demand and guidance
- Client segment: CCPG revenue was $8.1B, down 5% year over year and 9% sequentially, below Intel’s expectations. AI PC revenue nevertheless grew 35% year over year, while Wildcat Lake units rose about 70% sequentially and the product was sold out.
- Market pressure: Intel attributed the accelerated PC correction to higher memory prices and reduced availability, limited IT budgets, and OEM inventory reductions. It expects PC unit TAM to fall about 12% in 2026 and 10% in 2027, with the 2026 second half down more than 20%.
- Q4 outlook: Revenue guidance of $15.0B–$16.0B implies a sequential decline from Q3’s $16.51B. Intel forecast GAAP EPS of $0.10 and non-GAAP EPS of $0.25, with gross margins of 37.1% GAAP and 38.0% non-GAAP.
- Israel factory impact: The outlook includes an estimated $300M revenue hit and 200 basis points of gross-margin pressure from a shutdown at Intel’s Israel factory, affecting mostly 10-nanometer server products. Management said a similar revenue impact may extend into Q1, but described the estimate as preliminary.
Margins and earnings
- Q3 profitability: GAAP gross margin was 43.0%, up 4.8 percentage points year over year; non-GAAP gross margin was 44.1%, up 4.1 points year over year and about 200 basis points sequentially.
- Operating leverage: GAAP operating income rose to $2.52B from $683M a year earlier and $1.80B in Q2. Non-GAAP operating income was $3.23B, with a 19.6% margin versus 11.2% a year earlier.
- Bottom-line context: GAAP net income attributable to Intel was $3.32B, down 18% from $4.06B a year earlier, while non-GAAP net income was $2.76B, up 169% from $1.02B. The prior-year comparison included a $5.5B Altera divestiture gain in GAAP results.
- Drivers and limits: Management credited improved Intel 3 and 18A costs, favorable product mix and disciplined spending. Q3 non-GAAP EPS was $0.52 versus $0.23 a year earlier; Intel noted that incremental interest income from the equity offering added about $0.01.
Foundry execution
- Revenue and loss: Intel Foundry revenue was $6.7B, up 58% year over year and 16% sequentially; the segment reported a $1.85B operating loss, an improvement of $236M sequentially. External foundry revenue was $411M, including a nonrecurring customer program.
- Process improvements: Management said Intel 3 and Intel 18A yields increased again, with Intel 18A yields improving at a double-digit rate. Intel 3 costs were about 15% lower than Q1 levels, while Intel 18A costs had fallen about 40% since Q1.
- Roadmap and customers: Intel released its 14A 0.9 process design kit to select customers in October and said 14A remains on track. Intel 18A-P was on track for year-end launch across internal products; management reported growing external customer engagement but did not identify customers.
- Profitability challenge: Higher yields, shorter cycle times and factory utilization reduced wafer costs, but Intel said substantial work remains before Foundry is sustainably profitable. It continues investing to prepare 14A for risk production next year.
Funding and investment
- Equity proceeds: The August public offering generated $23.0B gross and $22.6B net proceeds. Weighted-average diluted shares rose to 5.307B from 4.531B a year earlier, and Q4 guidance assumes a full quarter of the newly issued shares.
- Liquidity and cash generation: Intel ended Q3 with approximately $54B in cash and short-term investments and $15B in borrowing capacity under its amended revolvers. Operating cash flow was $5.1B and adjusted free cash flow was $1.6B.
- Capital plans: Intel maintained 2026 gross capital expenditure guidance of $20B and expects 2027 gross capital spending to increase strongly. Management said next year is likely to be an investment year with no positive free cash flow expected, as it ramps 18A and Intel 3 and prepares 14A.
