Intel Reports Third-Quarter 2026 Financial Results
INTEL CORP (INTC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Intel Corporation 2200 Mission College Blvd. Santa Clara, CA 95054-1549 News Release Intel Reports Third-Quarter 2026 Financial Results News Summary ▪ Third-quarter revenue was $16.5 billion, up 21% year-over-year (YoY). ▪ Third-quarter earnings per share (EPS) attri
How this was made
The 30-second read
Why it matters
The earnings beat on revenue and margin but the guidance issued suggests near‑term earnings pressure, likely prompting a sell‑off in the stock and sector.
Market read
The earnings release is material for traders due to the size of Intel, the surprise guidance downgrade, and its influence on the semiconductor sector.
What to watch
The $23B equity raise and new quantum/AI initiatives may provide upside catalysts not reflected in the short‑term guidance.
Third-quarter revenue was $16.5 billion, up 21% year-over-year (YoY), with GAAP EPS attributable to Intel of $0.60 and non-GAAP EPS attributable to Intel of $0.52.
Revenue grew 21% YoY, DCAI revenue grew 78%, gross and operating margins expanded, and non-GAAP EPS rose 126%. The result was tempered by a 5% CCPG revenue decline, an 18% decline in GAAP net income attributable to Intel, and Q4 revenue guidance below Q3 revenue with materially lower gross-margin guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $16.5B | – | up 21% |
| Gross profitGAAP | $7.10B | – | – |
| Gross marginGAAP | 43.0% | – | up 4.8 ppts |
| Gross profitnon-GAAP | $7.28B | – | – |
| Gross marginnon-GAAP | 44.1% | – | up 4.1 ppts |
| R&D and MG&AGAAP | $4.5B | – | up 4% |
| R&D and MG&Anon-GAAP | $4.1B | – | up 3% |
| Operating expensesGAAP | $4.57B | – | – |
| Operating incomeGAAP | $2.52B | – | – |
| Operating marginGAAP | 15.3% | – | up 10.3 ppts |
| Operating incomenon-GAAP | $3.23B | – | – |
| Operating marginnon-GAAP | 19.6% | – | up 8.4 ppts |
| Tax rateGAAP | 11.6% | – | up 5 ppts |
| Tax ratenon-GAAP | 11.0% | – | down 1 ppt |
| Net income attributable to IntelGAAP | $3.3B | – | down 18% |
| Net income attributable to Intelnon-GAAP | $2.8B | – | up 169% |
| Earnings per share attributable to Intel, dilutedGAAP | $0.60 | – | down 33% |
| Earnings per share attributable to Intel, dilutednon-GAAP | $0.52 | – | up 126% |
| Net cash provided by operating activitiesGAAP | $5.08B | – | – |
| Adjusted free cash flownon-GAAP | $1.64B | – | – |
| Net cash provided by operating activities, nine months endedGAAP | $13.18B | – | – |
| Net cash used for investing activities, nine months endedGAAP | −$20.26B | – | – |
| Net cash provided by financing activities, nine months endedGAAP | $14.76B | – | – |
| Total Intel employeesother | 81.1 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Client Computing and Physical AI Group (CCPG)CCPG was referred to as the Client Computing Group (CCG) in Q1 2026 and earlier periods. | $8.1B | – | down 5% |
| Data Center and AI (DCAI)Intel cited extraordinary demand for its Xeon family and reported its strongest data center revenue growth in 15 years. | $7.3B | – | up 78% |
| Total Intel Products revenueTotal Intel Products operating income was $5,324 million, compared with $3,658 million. | $15.4B | – | up 22% |
| Intel FoundryIntel Foundry operating loss was $(1,853) million, compared with $(2,321) million. | $6.7B | – | up 58% |
| All OtherThe category includes Mobileye, IMS, startup businesses and historical results of divested businesses, including Altera. | $700M | – | down 30% |
| Intersegment eliminationsOperating segment revenues include intersegment transactions and are presented as actual and rounded. | −$6.3B | – | – |
Q4 2026 outlook
- Revenue$15.0 - $16.0 billion
- Gross marginGAAP 37.1%; non-GAAP 38.0%
- Operating expensesGAAP operating expenses $4.9 billion; non-GAAP operating expenses $4.4 billion
- Tax rateGAAP 31%; non-GAAP 11%
- NoteGAAP earnings (loss) per share attributable to Intel, diluted: $0.10
- NoteNon-GAAP earnings (loss) per share attributable to Intel, diluted: $0.25
- NoteFull-Year 2026 GAAP operating expenses: $22.6 billion
- NoteFull-Year 2026 non-GAAP operating expenses: $16.3 billion
- NoteThe gross margin and EPS outlooks are based on the midpoint of the revenue range.
What drove it
- DCAI revenue was $7.3 billion, up 78% YoY.
- Intel Foundry revenue was $6.7 billion, up 58% YoY.
- GAAP gross margin increased to 43.0% from 38.2%, while non-GAAP gross margin increased to 44.1% from 40.0%.
- GAAP operating income was $2,522 million, compared with $683 million, and non-GAAP operating income was $3,234 million, compared with $1,524 million.
- Intel stated that its immediate priority is to unlock additional supply to meet extraordinary demand for its Xeon family.
- Intel announced a multiyear collaboration with Oracle intended to expand Intel Xeon-based computing on Oracle Cloud Infrastructure.
Concerns
- CCPG revenue was $8.1 billion, down 5% YoY.
- Intel expects the PC slowdown to continue at least through the first half of next year.
- GAAP net income attributable to Intel was $3.3 billion, down 18%, and GAAP diluted EPS was $0.60, down 33%.
- Q4 GAAP gross-margin guidance of 37.1% and non-GAAP gross-margin guidance of 38.0% are below Q3 actual gross margins of 43.0% and 44.1%, respectively.
- Intel Foundry reported an operating loss of $(1,853) million.
- Q4 GAAP tax-rate guidance is 31%, compared with a Q3 GAAP tax rate of 11.6%.
What to watch
- Whether Intel can increase supply to address extraordinary demand for its Xeon family.
- The trajectory of the PC slowdown, which Intel expects to continue at least through the first half of next year.
- DCAI growth following Q3 revenue growth of 78%.
- Intel Foundry revenue growth and operating-loss trajectory.
- Q4 revenue delivery within the $15.0 - $16.0 billion guidance range.
- Execution on Intel 14A, including the Intel 14A 0.9 process design kit released in October.
Balance sheet and cash flow
- Cash and cash equivalents were $21,846 million as of Sep 26, 2026, compared with $14,265 million as of Dec 27, 2025.
- Short-term investments were $32,159 million as of Sep 26, 2026, compared with $23,151 million as of Dec 27, 2025.
- Short-term debt was $3,817 million as of Sep 26, 2026, compared with $2,499 million as of Dec 27, 2025.
- Debt was $46,317 million as of Sep 26, 2026, compared with $44,086 million as of Dec 27, 2025.
- Property, plant, and equipment, net was $105,314 million as of Sep 26, 2026, compared with $105,414 million as of Dec 27, 2025.
- Nine-month additions to property, plant, and equipment were $(10,216) million, compared with $(11,158) million.
- The company completed a $23 billion public equity offering.
- Net proceeds from public offering of common stock were $22,617 million for the nine months ended Sep 26, 2026.
Analysis
Intel reported Q3 2026 revenue of $16.5 billion, up 21% YoY from $13.7 billion. Growth was concentrated in Data Center and AI, where revenue was $7.3 billion and rose 78%, and in Intel Foundry, where revenue was $6.7 billion and rose 58%. Client Computing and Physical AI Group revenue was $8.1 billion, down 5%, consistent with management's expectation that the PC slowdown will continue at least through the first half of next year.
Profitability improved materially at the operating level. GAAP gross margin rose to 43.0% from 38.2%, and GAAP operating margin rose to 15.3% from 5.0%. Non-GAAP gross margin rose to 44.1% from 40.0%, while non-GAAP operating margin increased to 19.6% from 11.2%. GAAP operating income reached $2,522 million versus $683 million, while non-GAAP operating income was $3,234 million versus $1,524 million.
GAAP earnings comparisons were affected by items outside core operating performance. GAAP net income attributable to Intel declined 18% to $3.3 billion and GAAP diluted EPS declined 33% to $0.60. In contrast, non-GAAP net income attributable to Intel rose 169% to $2.8 billion and non-GAAP diluted EPS rose 126% to $0.52. The reconciliation includes a $(1,005) million gain from mark-to-market of Escrowed Shares in Q3 2026 and a $(5,452) million gain from divestiture in Q3 2025.
Cash generation improved, with Q3 GAAP operating cash flow of $5,082 million and adjusted free cash flow of $1,639 million, compared with $2,546 million and $896 million, respectively. Intel also completed a $23 billion public equity offering, and net proceeds from the public offering of common stock were $22,617 million over the first nine months. Cash and cash equivalents were $21,846 million and short-term investments were $32,159 million at Sep. 26, 2026, while debt was $46,317 million.
The Q4 outlook indicates a slower near-term revenue and margin profile than Q3. Intel forecasts revenue of $15.0 - $16.0 billion, GAAP gross margin of 37.1%, non-GAAP gross margin of 38.0%, GAAP diluted EPS of $0.10 and non-GAAP diluted EPS of $0.25. Management is directing investment toward capacity and working capital to increase supply, while product and foundry execution, including Intel 14A and expanded Xeon deployment, remain central to the reported growth strategy.
Management, verbatim
Our Q3 results demonstrate improving execution, meaningful progress expanding supply and continued advancement of our process technology.
Lip-Bu Tan, Intel CEO
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, Intel CFO
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, Intel CFO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; no comparison of actual results with prior guidance is available.
- No share repurchases were reported.
- No dividends were reported.
- No quarterly sequential comparison for revenue, margins, earnings, operating cash flow, or adjusted free cash flow was reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Intel's Q3 2026 earnings were filed via an SEC 8‑K, providing the first public disclosure of results and guidance.
Ticker impact
Intel reported Q3 2026 results with revenue up 21% YoY to $16.5B but forecast Q4 revenue down to $15-16B and EPS of $0.10, indicating issued outlook.
likely downside pressure as investors price in issued Q4 outlook.
The guidance cuts revenue and EPS expectations for the next quarter, which typically triggers a sell-off in large-cap tech stocks.
Market effects
May weigh on broader semiconductor sector as peers' forecasts are compared to Intel's weaker outlook.
U.S. tech indices could see modest pullback.
Limited to markets tracking U.S. chip makers.
Counterpoint
If investors focus on the 21% revenue growth and strong data‑center momentum, the stock could rebound on the back of longer‑term growth narrative.
Key entities
- CompanyIntel Corp.
U.S. semiconductor giant reporting Q3 2026 results.
