Intel beats Q3 estimates, but Q4 outlook exposes PC and supply strain
Intel’s Q3 revenue rose 21% and data-center sales surged, yet its $15–16 billion Q4 forecast lagged consensus as PC weakness and a temporary Kiryat Gat disruption cloud the turnaround.
Intel’s third-quarter revenue rose 21% year over year to $16.5 billion, while GAAP diluted EPS was $0.60 and non-GAAP EPS was $0.52. Revenue, gross margin and EPS exceeded the company’s own guidance, according to management.
The mix was sharply uneven. Client Computing and Physical AI revenue fell 5% to $8.1 billion, while Data Center and AI revenue jumped 78% to $7.3 billion. Intel Foundry revenue increased 58% to $6.7 billion; the company said DCAI posted its strongest growth in 15 years.
Profitability improved against the prior-year quarter: GAAP gross margin rose to 43.0% from 38.2%, operating margin to 15.3% from 5.0%, and GAAP net income was $3.3 billion, versus $4.1 billion a year earlier. GAAP EPS nevertheless declined from $0.90 to $0.60, while non-GAAP EPS increased from $0.23 to $0.52.
Intel generated $5.1 billion of operating cash flow in the quarter. Its third-quarter filing reported $21.846 billion in cash and cash equivalents and $50.134 billion in total debt at September 26; cash plus short-term investments totaled $54.005 billion. Operating cash flow for the first nine months was $13.184 billion, up from $5.409 billion in the comparable 2025 period.
The company also said an October incident at its Kiryat Gat site had temporarily disrupted production. Reuters reported that Intel expected roughly $300 million of fourth-quarter revenue impact and a similar effect in the first quarter of 2027, with about 200 basis points of pressure on fourth-quarter gross margin. The company’s reported priorities are restoring supply, especially for Xeon, and funding capacity and working capital while maintaining an investment-grade balance sheet.
Revenue
$16.5B
↑ +21% year over year
DCAI revenue
$7.3B
↑ +78% year over year
Q4 revenue guide
$15–16B
↓ vs $17.07B consensus
Sources
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC.
