Intel ($INTC) reported its third-quarter 2026 results after the market close on Thursday, October 29, 2026. For the quarter ended September 26, revenue was $16.51 billion, up 21% from a year earlier and above the midpoint of the $15.8-16.8 billion range Intel had guided in July.
Inside that total, two markets moved in opposite directions. Data Center and AI revenue rose 78% to $7.32 billion, and demand for certain data center products ran above available supply. Client Computing and Physical AI Group revenue fell 5% to $8.10 billion as higher memory prices weighed on PC demand.
The fourth-quarter outlook points the other way. Intel guided revenue of $15.0-16.0 billion, a non-GAAP gross margin of 38.0% and non-GAAP earnings per share of $0.25. Its Form 10-Q says it expects weaker client trends to worsen in the fourth quarter and persist in 2027.
Key Takeaways
- Third-quarter revenue of $16.51 billion, up 21%, came in above the midpoint of Intel's July guidance. Non-GAAP gross margin was 44.1% against 42.0% guided, and non-GAAP EPS was $0.52 against $0.38 guided.
- Data Center and AI revenue rose 78% to $7.32 billion on server average selling prices up 54% and server volume up 10%.
- Client Computing and Physical AI Group revenue fell 5% to $8.10 billion: client volume fell 14% while average selling prices rose 9%.
- GAAP EPS of $0.60 was higher than non-GAAP EPS of $0.52, mainly because of a $0.17 per share gain on the Escrowed Shares.
- Fourth-quarter guidance: revenue of $15.0-16.0 billion, non-GAAP gross margin of 38.0% and non-GAAP EPS of $0.25 (GAAP $0.10).
- Cash and short-term investments reached $54.0 billion after the August share offering brought in $22.6 billion of net proceeds.
Intel Q3 2026 Results at a Glance
Against Intel's July Guidance
When Intel reported its second quarter in July, it gave a forecast for the third. The actual figures came in above that forecast on revenue, gross margin and earnings per share, on both reporting bases.
| Item | Q3 2026 guidance | Q3 2026 actual |
|---|---|---|
| Revenue ($B) | 15.8-16.8 | 16.51 |
| Non-GAAP gross margin (%) | 42.0 | 44.1 |
| Non-GAAP EPS ($) | 0.38 | 0.52 |
| GAAP gross margin (%) | 41.0 | 43.0 |
| GAAP EPS ($) | 0.31 | 0.60 |
Two definitions help here. Gross margin is the share of revenue left after the direct cost of making the products sold. GAAP EPS is profit per share calculated under U.S. accounting rules, while non-GAAP EPS is Intel's adjusted measure that removes items such as share-based compensation and gains or losses on investments.
David Zinsner, Chief Financial Officer, summarized the quarter in the release:
"We delivered another solid quarter. Revenue, gross margin and earnings per share exceeded guidance, including our strongest data center revenue growth in 15 years
— David Zinsner, Chief Financial Officer (Intel Q3 2026 earnings release, October 29, 2026)
Against the Consensus Estimate
The consensus estimate is the average forecast of analysts who follow a company, and here it is on a non-GAAP basis. Intel's non-GAAP EPS of $0.52 was above the consensus estimate of $0.40. Revenue of $16.51 billion was 1.6% below the consensus estimate of $16.78 billion.
| Item | Consensus estimate | Q3 2026 actual | Actual vs consensus |
|---|---|---|---|
| Non-GAAP EPS ($) | 0.40 | 0.52 | above |
| Revenue ($B) | 16.78 | 16.51 | 1.6% below |
Revenue therefore landed above the midpoint of Intel's own guidance but below the consensus estimate. Earnings per share were above both.
What Drove Revenue: Data Center Up, PCs Down
Intel reports two product segments, which together form Intel Products, plus Intel Foundry and a smaller All Other line. Intel Products revenue rose 21.84% to $15.42 billion. The data center segment added more revenue than Intel Products gained in total, because the client segment shrank.
| Segment | Q3 2026 ($M) | Q3 2025 ($M) | Change (%) |
|---|---|---|---|
| Client Computing and Physical AI Group (CCPG) | 8,097 | 8,535 | −5.13 |
| Data Center and AI (DCAI) | 7,318 | 4,117 | +77.75 |
| Intel Products total | 15,415 | 12,652 | +21.84 |
| Intel Foundry | 6,697 | 4,235 | +58.13 |
| All Other | 692 | 993 | −30.31 |
| Intersegment eliminations | −6,291 | n/a | n/a |
| Total net revenue | 16,513 | 13,653 | +20.95 |
Data Center and AI: Revenue Up 78% on Price and Volume
DCAI revenue rose 77.75% to $7.32 billion, which Intel rounds to 78%. Average selling price, or ASP, is the average revenue a company receives per unit sold, so revenue growth can be split into more units and higher prices.
The 10-Q gives that split. Server revenue rose $2.5 billion as server ASPs climbed 54%, mostly from a richer mix of premium products and, to a lesser extent, demand-based pricing. Server volume rose 10% on higher hyperscaler demand.
Other DCAI revenue rose $743 million to $1.4 billion on purpose-built silicon. The 10-Q also states that demand for certain data center products continued to exceed available supply.
| Business line | Q3 2026 revenue | Change vs Q3 2025 | Volume change (%) | ASP change (%) |
|---|---|---|---|---|
| Client (notebook and desktop) | $6.9B | −$424M | −14 | +9 |
| Server | n/a | +$2.5B | +10 | +54 |
| Other DCAI | $1.4B | +$743M | n/a | n/a |
Lip-Bu Tan, Chief Executive Officer, framed supply as the near-term task:
"Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family, while strengthening our product portfolio and roadmap.
— Lip-Bu Tan, Chief Executive Officer (Intel Q3 2026 earnings release, October 29, 2026)
Client Computing: Fewer PCs at Higher Prices
CCPG revenue fell 5.13% to $8.10 billion. Within it, client revenue from notebooks and desktops was $6.9 billion, down $424 million. Client volume fell 14%, while ASPs rose 9% on pricing actions, partly to offset higher input costs, and a higher premium mix.
The 10-Q attributes lower client demand to three factors:
- higher component prices, particularly memory;
- constrained IT budgets;
- tighter inventory management.
On memory, the filing is specific:
"Other parts of the market, especially those that are more price-sensitive such as the client markets, have seen demand impacted adversely by high memory prices as a result of memory supply constraints.
— Intel (Form 10-Q for the quarter ended September 26, 2026)
The 10-Q then looks ahead: "We expect these trends to worsen in Q4 2026 and persist in 2027." Tan's comment in the release kept the focus on processor demand:
"Despite near-term headwinds across the PC industry, demand for our CPUs remains robust, reinforcing our confidence in the long-term growth opportunities for our business.
— Lip-Bu Tan, Chief Executive Officer (Intel Q3 2026 earnings release, October 29, 2026)
Intel Foundry and Intersegment Eliminations
Intel Foundry revenue rose 58.13% to $6.70 billion, and its operating loss narrowed to $1.85 billion from $2.32 billion. Foundry revenue is mostly sales to Intel's own product groups, so it is removed from the company total in the eliminations line.
Intersegment eliminations are the adjustment that strips out sales between a company's own divisions, so the same revenue is not counted twice. For Intel this quarter, that line was −$6.29 billion.
All Other revenue fell 30.31% to $692 million. Altera, previously part of this line, was deconsolidated on September 12, 2025.
Intel Gross Margin and Operating Margin
GAAP gross margin rose to 43.0% from 38.2% a year earlier, and non-GAAP gross margin rose to 44.1% from 40.0%. Gross profit reached $7.10 billion against $5.22 billion.
Operating margin is the share of revenue left after both production costs and operating expenses such as research and marketing. Intel's GAAP operating margin rose to 15.3% from 5.0%, and its non-GAAP operating margin rose to 19.6% from 11.2%.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Gross profit ($M) | 7,096 | 5,218 |
| GAAP gross margin (%) | 43.0 | 38.2 |
| Non-GAAP gross margin (%) | 44.1 | 40.0 |
| Research and development ($M) | 3,490 | n/a |
| Marketing, general and administrative ($M) | 1,030 | n/a |
| Restructuring ($M) | 54 | n/a |
| Operating income ($M) | 2,522 | 683 |
| GAAP operating margin (%) | 15.3 | 5.0 |
| Non-GAAP operating margin (%) | 19.6 | 11.2 |
| Net income attributable to Intel ($M) | 3,320 | 4,063 |
| Diluted shares (millions) | 5,307 | 4,531 |
| Employees (thousands) | 81.1 | 88.4 |
Operating income rose to $2.52 billion from $683 million. Net income attributable to Intel was $3.32 billion, below $4.06 billion a year earlier, when results included the gain on the Altera divestiture.
Headcount stood at 81.1 thousand employees, compared with 88.4 thousand a year earlier.
Segment Operating Margins
The two product segments moved in opposite directions here too. DCAI operating margin rose to 41.5% from 23.4%, while CCPG operating margin fell to 28.2% from 31.6%.
| Segment | Q3 2026 operating income ($M) | Q3 2025 operating income ($M) | Q3 2026 margin (%) | Q3 2025 margin (%) |
|---|---|---|---|---|
| CCPG | 2,285 | 2,694 | 28.2 | 31.6 |
| DCAI | 3,039 | 964 | 41.5 | 23.4 |
| Intel Foundry | −1,853 | −2,321 | n/a | n/a |
GAAP Versus Non-GAAP EPS: Why Intel Reported $0.60 and $0.52
Intel's GAAP diluted EPS was $0.60, against $0.90 a year earlier. Non-GAAP EPS was $0.52, against $0.23. A guide on how to read an earnings report explains why companies publish both measures.
This quarter GAAP EPS was the higher of the two, because GAAP results included gains that Intel removes from its adjusted figure. Intel's reconciliation shows each step.
| Item | Q3 2026 ($ per share) |
|---|---|
| GAAP diluted EPS | 0.60 |
| Add: acquisition-related items | +0.02 |
| Add: share-based compensation | +0.11 |
| Add: restructuring | +0.01 |
| Less: gains on equity investments | −0.06 |
| Less: Escrowed Shares mark-to-market gain | −0.17 |
| Less: non-controlling interests | −0.01 |
| Add: income tax effects | +0.02 |
| Non-GAAP EPS | 0.52 |
The largest item is a $0.17 per share gain on the Escrowed Shares, alongside a $0.06 gain on equity investments. Those gains were partly offset by share-based compensation of $0.11, acquisition-related items of $0.02 and restructuring of $0.01.
The year-ago comparison has its own one-off item. Q3 2025 GAAP EPS of $0.90 included a $1.20 per share gain from the Altera divestiture.
What the Escrowed Shares Are
The Escrowed Shares are Intel shares held in escrow for the U.S. Department of Commerce under the CHIPS Act Secure Enclave agreement. Intel marks them to market, meaning it revalues them at the current market value each quarter and records the change in its GAAP results.
In the third quarter that revaluation produced a gain of $1.0 billion. Over the first nine months of 2026 it produced a net loss of $12.6 billion, which is why GAAP EPS was negative in the first quarter (−$0.73) and the second quarter (−$2.16). At September 26, 132 million Escrowed Shares had not yet been released.
| Item | Value |
|---|---|
| Escrowed Shares mark-to-market gain, Q3 2026 | $1.0 billion |
| Escrowed Shares net loss, first nine months of 2026 | $12.6 billion |
| Escrowed Shares not yet released, September 26, 2026 | 132 million |
| Altera divestiture gain in Q3 2025 GAAP EPS | $1.20 per share |
Five Quarters of Intel Results
Compared with the second quarter, covered in the Intel Q2 2026 earnings recap, revenue rose to $16.51 billion from $16.13 billion. Non-GAAP gross margin widened to 44.1% from 41.8%, and non-GAAP EPS rose to $0.52 from $0.42.
| Metric | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|
| Revenue ($B) | 13.65 | 13.67 | 13.58 | 16.13 | 16.51 |
| Non-GAAP gross margin (%) | 40.0 | 37.9 | 41.0 | 41.8 | 44.1 |
| Non-GAAP EPS ($) | 0.23 | 0.15 | 0.29 | 0.42 | 0.52 |
| GAAP EPS ($) | 0.90 | −0.12 | −0.73 | −2.16 | 0.60 |
| Operating cash flow ($B) | 2.55 | 4.29 | 1.10 | 7.01 | 5.08 |
| Gross capital expenditures ($B) | 2.96 | 4.02 | 4.96 | 2.65 | 4.22 |
Cash flows moved less evenly. Operating cash flow was $5.08 billion, down from $7.01 billion in the second quarter, while gross capital expenditures rose to $4.22 billion from $2.65 billion.
Over the five quarters, GAAP EPS ranged from −$2.16 to $0.90, while non-GAAP EPS stayed between $0.15 and $0.52. The swings in the GAAP line trace largely to the Escrowed Shares and the Altera gain described above.
Intel's Q4 2026 Guidance and the Reasons Behind It
For the fourth quarter, Intel guides revenue of $15.0-16.0 billion, a non-GAAP gross margin of 38.0% (GAAP 37.1%) and non-GAAP EPS of $0.25 (GAAP $0.10). Intel says the gross margin and EPS outlooks are based on the revenue midpoint.
| Item | Q4 2026 guidance | Q3 2026 actual |
|---|---|---|
| Revenue ($B) | 15.0-16.0 | 16.51 |
| Non-GAAP gross margin (%) | 38.0 | 44.1 |
| GAAP gross margin (%) | 37.1 | 43.0 |
| Non-GAAP EPS ($) | 0.25 | 0.52 |
| GAAP EPS ($) | 0.10 | 0.60 |
| Non-GAAP tax rate (%) | 11 | n/a |
| GAAP tax rate (%) | 31 | n/a |
| Non-GAAP operating expenses ($B) | about 4.4 | n/a |
At the midpoint, guided revenue is 6.13% below the third quarter and 13.35% above the fourth quarter of 2025. The guided non-GAAP gross margin is 6.1 points below the third quarter's 44.1%.
| Comparison | Low end (%) | Midpoint (%) | High end (%) |
|---|---|---|---|
| Q4 2026 revenue vs Q3 2026 ($16.51B) | −9.16 | −6.13 | −3.11 |
| Q4 2026 revenue vs Q4 2025 ($13.67B) | +9.70 | +13.35 | +17.01 |
| Non-GAAP gross margin vs Q3 2026 (points) | n/a | −6.1 | n/a |
Guidance is Intel's own forecast of future results. Actual results can differ, including for the reasons Intel sets out below.
Demand: Data Center Strong, PCs Weaker Into 2027
The 10-Q says data center demand remained strong and that Intel expects it to continue into the fourth quarter and beyond. Client demand moves the other way: Intel expects the client trends described above to worsen in the fourth quarter and persist in 2027.
Zinsner put a timeframe on the PC side:
"Looking ahead, we see the PC slowdown continuing at least through the first half of next year, but we remain optimistic about the opportunities across our broader portfolio, and we will continue making disciplined investments in capacity and working capital to increase supply and support future growth.
— David Zinsner, Chief Financial Officer (Intel Q3 2026 earnings release, October 29, 2026)
Supply: Substrates and Memory
A substrate is the base that holds and connects a chip in its package. The 10-Q says industry-wide shortages of substrates, memory and other critical components limited product availability, particularly for data center CPUs that rely on substrates for advanced packaging.
Intel expects the shortages to persist into next year. After the quarter ended, it entered two agreements to secure substrate supply, with total funding requirements estimated at about $5.3-6.1 billion, about $3.3 billion of it payable by the end of 2027.
| Item | Amount |
|---|---|
| Substrate supply agreements, estimated total funding requirements | $5.3-6.1 billion |
| Portion payable by the end of 2027 (about) | $3.3 billion |
On memory, the filing's wording is more cautious: "...though our ability to mitigate the impact of other constraints, such as those with respect to memory, is very limited."
The Kiryat Gat Accident
In mid-October 2026, an accident at Intel's manufacturing facility in Kiryat Gat, Israel resulted in employee casualties and injuries and halted manufacturing. The 10-Q states that operations had been suspended for about two weeks and were expected to resume by the end of October.
Intel expects charges in the fourth quarter for scrapped inventory, remediation and under-absorbed overhead. It also expects higher manufacturing costs in the fourth quarter and through the first half of 2027.
On the size of the impact, the 10-Q states: "we are currently unable to reasonably estimate the financial impact from the incident or the amount of insurance recoveries we may receive." Intel maintains insurance coverage for certain losses.
Cash, Capital Spending and the August Share Offering
Operating cash flow was $5.08 billion in the third quarter, and gross capital expenditures were $4.22 billion. Adjusted free cash flow was $1.64 billion, up from $0.90 billion a year earlier.
Adjusted free cash flow, as Intel defines it, is operating cash flow minus capital expenditures net of government incentives and net partner contributions, minus finance-lease payments. It is a company-specific measure and may differ from free cash flow as other companies report it.
| Measure ($B) | Q3 2026 | Q3 2025 |
|---|---|---|
| Operating cash flow | 5.08 | 2.55 |
| Gross capital expenditures | 4.22 | 2.96 |
| Adjusted free cash flow | 1.64 | 0.90 |
On August 12, 2026, Intel completed an underwritten public offering of about 242 million shares at $95.00 each. Gross proceeds were $23.0 billion and net proceeds $22.6 billion, for general corporate purposes including capital expenditures and working capital.
| Item | Value |
|---|---|
| Completion date | August 12, 2026 |
| Shares sold (about) | 242 million |
| Price per share | $95.00 |
| Gross proceeds | $23.0 billion |
| Net proceeds | $22.6 billion |
Cash, cash equivalents and short-term investments rose to $54.0 billion at September 26 from $37.4 billion at December 27, 2025. Total debt rose to $50.1 billion from $46.6 billion, and shares outstanding rose to 5,310 million from 4,994 million.
| Item | September 26, 2026 | December 27, 2025 |
|---|---|---|
| Cash, cash equivalents and short-term investments ($B) | 54.0 | 37.4 |
| Total debt, short-term plus long-term ($B) | 50.1 | 46.6 |
| Shares outstanding (millions) | 5,310 | 4,994 |
Two Ways to Read the Quarter
The same report supports different conclusions, and the filings do not settle which matters more.
One way to read the quarter starts with supply:
- the data center business is limited by supply rather than demand, with the 10-Q saying demand for certain data center products continued to exceed available supply;
- prices are rising, with server ASPs up 54%;
- third-quarter revenue, gross margin and EPS all came in above Intel's own guidance;
- Intel had $54.0 billion of cash and short-term investments after the August offering.
Another reading starts with the outlook:
- Intel guides fourth-quarter revenue 6.13% below the third quarter at the midpoint, with a non-GAAP gross margin about 6 points lower;
- it expects weaker PC demand to persist into 2027;
- it cannot yet estimate the cost of the Kiryat Gat accident;
- it says its ability to mitigate memory constraints is very limited;
- it has committed an estimated $5.3-6.1 billion to secure substrate supply.
Both readings rest on figures Intel has published. The fourth-quarter report will show how actual results compare with the guided $15.0-16.0 billion revenue range and 38.0% margin, in a quarter in which Intel expects the Kiryat Gat charges.
How Intel Shares Traded After the Report
Intel shares closed at $92.07 on October 29, down 3.62%, in the session before the after-hours release. On Friday, October 30, the first session after the report, they closed at $65.76, down 28.58%, after trading between $63.20 and $68.77.
That was the largest one-day percentage decline for Intel shares in the ten years of daily data checked, which begin October 31, 2016. The largest before it in that window was 26.06% on August 2, 2024.
The October 30 close was 45.30% below the September 30 close of $120.23 and 78.21% above the December 31, 2025 close of $36.90. Past price moves do not indicate future returns.
| Item | Price ($) | Change (%) |
|---|---|---|
| October 28, 2026 close | 95.53 | n/a |
| October 29, 2026 close | 92.07 | −3.62 |
| October 30, 2026 close | 65.76 | −28.58 |
| October 30, 2026 intraday high | 68.77 | n/a |
| October 30, 2026 intraday low | 63.20 | n/a |
| September 30, 2026 close | 120.23 | n/a |
| October 30 close vs September 30 close | n/a | −45.30 |
| December 31, 2025 close | 36.90 | n/a |
| October 30 close vs December 31, 2025 close | n/a | +78.21 |
| Previous largest one-day decline since October 31, 2016 (August 2, 2024) | n/a | −26.06 |
Same-Day Moves in Dell, AMD and HP
In the same session, close to close, Dell fell 10.77% to $424.30, AMD fell 10.88% to $504.80 and HP fell 9.58% to $28.78.
| Company | October 29 close ($) | October 30 close ($) | Change (%) |
|---|---|---|---|
| Dell | 475.51 | 424.30 | −10.77 |
| AMD | 566.42 | 504.80 | −10.88 |
| HP | 31.83 | 28.78 | −9.58 |
Frequently Asked Questions
How much revenue did Intel report for Q3 2026?
Intel reported third-quarter 2026 revenue of $16.51 billion, up 21% from $13.65 billion a year earlier. That was above the midpoint of its July guidance range of $15.8-16.8 billion and 1.6% below the consensus estimate of $16.78 billion.
Why did Intel's data center revenue rise 78%?
The 10-Q says server ASPs rose 54%, mostly from premium mix and to a lesser extent demand-based pricing, while server volume rose 10% on higher hyperscaler demand. Other DCAI revenue also rose $743 million on purpose-built silicon.
Why did Intel's PC revenue fall in Q3 2026?
Client volume fell 14%, which outweighed a 9% rise in ASPs. The 10-Q attributes lower client demand to higher component prices, particularly memory, constrained IT budgets and tighter inventory management.
Why is Intel's GAAP EPS different from its non-GAAP EPS?
GAAP EPS of $0.60 included a $0.17 per share gain on the Escrowed Shares and a $0.06 gain on equity investments, which non-GAAP EPS removes. Non-GAAP EPS also adds back share-based compensation and other items, arriving at $0.52.
What is Intel guiding for Q4 2026?
Intel guides revenue of $15.0-16.0 billion, a non-GAAP gross margin of 38.0% (GAAP 37.1%) and non-GAAP EPS of $0.25 (GAAP $0.10). Guidance is a company forecast, and actual results may differ.
What happened at Intel's Kiryat Gat facility?
In mid-October 2026 an accident at the Kiryat Gat, Israel facility halted manufacturing for about two weeks. Intel expects related charges in the fourth quarter and says it cannot yet reasonably estimate the financial impact.
How much cash does Intel have after the August 2026 share offering?
Cash, cash equivalents and short-term investments were $54.0 billion at September 26, 2026, up from $37.4 billion at December 27, 2025. The August 12 offering produced net proceeds of $22.6 billion, and total debt was $50.1 billion.