# 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.

Source page: https://stoqly.net/news/intel-q3-2026-estimates-q4-outlook

- **Published:** 2026-10-31T22:40:00+00:00
- **Section:** Quarterly results

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.

**Q4 outlook trails consensus** **The forward-looking gap is the key signal.** Intel guided fourth-quarter revenue to **$15.0–$16.0 billion**, non-GAAP gross margin to **38.0%** and non-GAAP EPS to **$0.25**. The revenue midpoint of **$15.5 billion** compares with a reported analyst average of **$17.07 billion**, while the EPS guide compares with **$0.43** consensus. Intel said the PC slowdown could continue through at least the first half of 2027.

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

- [Intel Q3 2026 earnings release, October 29, 2026](https://www.sec.gov/Archives/edgar/data/50863/000005086326000188/q326earningsrelease.htm)
- [Intel Form 10-Q for quarter ended September 26, 2026](https://www.sec.gov/Archives/edgar/data/50863/000005086326000191/intc-20260926.htm)
- [Reuters report on Intel Q4 outlook and production disruption](https://www.investing.com/news/stock-market-news/intel-warning-sparks-chip-rout-as-pc-weakness-clouds-turnaround-4987123)
- [Reuters report on Intel Q3 consensus comparison](https://www.investing.com/news/earnings/intel-earnings-beat-by-012-revenue-topped-estimates-4984970)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.