Intel Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $16.5 billion, up 21% year-over-year compared to $13.7 billion in Q3 2025.
• GAAP earnings per share (EPS) attributable to Intel was $0.60, down 33% from $0.90 in Q3 2025; non-GAAP EPS was $0.52, up 126% from $0.23 in Q3 2025.
• GAAP net income attributable to Intel was $3.3 billion, down 18% from $4.1 billion in Q3 2025; non-GAAP net income was $2.8 billion, up 169% from $1.0 billion in Q3 2025.
• GAAP gross margin was 43.0%, up 4.8 percentage points from 38.2% in Q3 2025; non-GAAP gross margin was 44.1%, up 4.1 percentage points from 40.0% in Q3 2025.
• GAAP operating margin was 15.3%, up 10.3 percentage points from 5.0% in Q3 2025; non-GAAP operating margin was 19.6%, up 8.4 percentage points from 11.2% in Q3 2025.
• R&D and MG&A expenses were $4.5 billion (GAAP), up 4% from $4.4 billion in Q3 2025; non-GAAP R&D and MG&A were $4.1 billion, up 3% from $3.9 billion in Q3 2025.
• Cash flow from operations was $5.1 billion.
• Adjusted free cash flow was $1.6 billion.
• Total assets were $228.6 billion as of September 26, 2026, compared to $211.4 billion as of December 27, 2025.
• Total debt was $50.1 billion ($3.8 billion short-term + $46.3 billion long-term) as of September 26, 2026, compared to $46.6 billion ($2.5 billion short-term + $44.1 billion long-term) as of December 27, 2025.

Guidance and Future Outlook:

• Fourth-quarter 2026 revenue is forecasted at $15.0 billion to $16.0 billion.
• Fourth-quarter 2026 GAAP EPS is forecasted at $0.10; non-GAAP EPS is forecasted at $0.25.
• Fourth-quarter 2026 GAAP gross margin is forecasted at 37.1%; non-GAAP gross margin is forecasted at 38.0%.
• Fourth-quarter 2026 GAAP tax rate is forecasted at 31%; non-GAAP tax rate is forecasted at 11%.
• Management expects the PC slowdown to continue at least through the first half of 2027.
• Full-year 2026 non-GAAP operating expenses are forecasted at approximately $16.3 billion.

Business Segments and Product Lines:

• Client Computing and Physical AI Group (CCPG) revenue was $8.1 billion, down 5% year-over-year.
• Data Center and AI (DCAI) revenue was $7.3 billion, up 78% year-over-year, marking the strongest data center revenue growth in 15 years.
• Intel Foundry revenue was $6.7 billion, up 58% year-over-year.
• All Other revenue was $0.7 billion, down 30% year-over-year, impacted by the deconsolidation of Altera.
• Total Intel Products revenue was $15.4 billion, up 22% year-over-year.
• Announced a multiyear collaboration with Oracle to expand Intel Xeon-based computing on Oracle Cloud Infrastructure, including future X14 offerings powered by Diamond Rapids.
• Announced the first Googlebook devices powered by Intel Core Ultra Series 3 processors.
• Released the Intel 14A 0.9 process design kit (PDK) in October.
• Announced collaborations with AMD (PyTorch/oneDNN), SAP (Physical AI), Lens Technology (advanced packaging), ASML (High-NA EUV), and Lam Research/Applied Materials (capacity expansion).

Market and Competitive Landscape:

• Demand for Intel CPUs remains robust despite near-term headwinds in the PC industry.
• The company is moving to unlock additional supply to meet extraordinary demand for the Xeon family.
• Management highlighted the importance of securing product design wins and demand commitments for next-generation process technologies (Intel 14A).
• The company is competing in the AI market with new architectures for Agentic AI and Enterprise-scale workloads (Diamond Rapids, GPU D-series, Core Series 3).

Risks and Challenges:

• High level of competition and rapid technological change in the semiconductor industry.
• Significant, long-term, and inherently risky investments in R&D and manufacturing facilities that may not realize a favorable return.
• Complexities in developing and implementing new semiconductor products and manufacturing process technologies.
• Geopolitical tensions and conflicts, including trade tensions between the U.S. and China, the war in Ukraine, and tensions in the Middle East.
• Supply chain disruptions, including industry-wide substrate and memory shortages.
• Potential security vulnerabilities, cybersecurity threats, and IP risks including litigation.
• The U.S. government's acquisition of significant equity interests in the company.
• Fluctuations in currency exchange rates and changes in tax regimes.

Management Commentary and Tone:

• CEO Lip-Bu Tan stated results demonstrate "improving execution, meaningful progress expanding supply and continued advancement of our process technology."
• CFO David Zinsner noted revenue, gross margin, and EPS exceeded guidance and highlighted the "strongest data center revenue growth in 15 years."
• Management expressed optimism about opportunities across the broader portfolio and a commitment to disciplined investments in capacity and working capital.
• Dean Jarnac was appointed executive vice president and chief sales officer to strengthen customer relationships and go-to-market execution.

Other Key Points:

• Completed a $23 billion public equity offering to support future growth while maintaining an investment-grade rating.
• Announced plans to acquire Classiq to combine its quantum software synthesis platform with Intel's spin-qubit manufacturing and software expertise.
• Altera was deconsolidated following the sale of 51% of its common stock on September 12, 2025.
• The company generated $22.6 billion in net proceeds from the public offering of common stock in the nine months ended September 26, 2026.
• Issued $13.0 billion in term debt and repaid $9.0 billion in term debt during the nine months ended September 26, 2026.
• Total employees were 81.1 thousand as of September 26, 2026, down from 88.4 thousand in Q3 2025.