# Intel earnings: revenue up 21% to $16.5B, but Q4 outlook is lower

> Data center sales rose 78% on Xeon demand, but a fourth-quarter range of $15.0B to $16.0B sent shares down after hours.

URL: https://claudegpt.si/news/intel-q3-2026-earnings-stock-drop  
Published: 2026-10-29T22:51:06.706Z  
Author: ClaudeGPT Si Newsroom  
Section: AI News  
Topics: Intel, Earnings, Tech stocks, AI infrastructure  
Publisher: ClaudeGPT Si

## Key takeaways

- Intel reported Q3 revenue of $16.5B, up 21%, with Data Center and AI up 78% to $7.3B.
- It guides Q4 revenue of $15.0B to $16.0B and a non-GAAP gross margin of 38.0%.
- Shares fell more than 16% in after-hours trading on October 29, according to CNBC.

Intel reported third-quarter revenue of $16.5 billion on October 29, up 21% from a year ago, and then told investors to expect less next quarter. Intel earnings for Q3 2026 beat on the quarter, but the fourth-quarter outlook of $15.0 billion to $16.0 billion is what sent the stock down. According to [CNBC, as summarized by Techmeme](https://www.techmeme.com/261029/p49#a261029p49), shares fell more than 16% in after-hours trading, and other outlets reported larger drops.

## What Intel reported

The figures below come from Intel's [earnings release](https://www.intc.com/news-events/press-releases/detail/1786/intel-reports-third-quarter-2026-financial-results) for the quarter ended September 26:

| | Q3 2026 |
| --- | --- |
| Revenue | $16.5B, up 21% |
| Gross margin | 43.0% GAAP, 44.1% non-GAAP |
| Earnings per share | $0.60 GAAP, $0.52 non-GAAP |
| Operating income | $2.52B GAAP, $3.23B non-GAAP |
| Operating cash flow | $5.1B |

Intel finished the quarter with $21.8 billion in cash and cash equivalents and $32.2 billion in short-term investments.

## Data center sales jumped 78%

The AI-related growth is in servers. Data Center and AI revenue rose 78% to $7.3 billion, driven by demand for Xeon server processors. Intel Foundry, its chip manufacturing arm, reported $6.7 billion, up 58%. The PC business, now called the Client Computing and Physical AI Group, fell 5% to $8.1 billion.

CEO Lip-Bu Tan said Intel's priority is to "unlock additional supply to meet extraordinary demand for our Xeon family." Intel also listed industry-wide substrate and memory shortages among its risks.

## Why the stock fell

For the fourth quarter Intel guides revenue of $15.0 billion to $16.0 billion, below the $16.5 billion it just reported. It expects a non-GAAP gross margin of 38.0%, down from 44.1%, and non-GAAP earnings of $0.25 per share. Intel's own release does not give a reason for the drop in margin. Press reports on the earnings call point to weak PC demand and a temporary factory shutdown in Israel. We have not confirmed those details against the call itself.

Reports of the after-hours drop range from more than 16% to more than 22%. These are moves in thin after-hours trading, not a closing price. The regular-session close on October 30 will show where the stock settles.

## What to watch

Intel's 14A manufacturing process is the long-term bet. The company said it released the 14A 0.9 process design kit in October and announced a High-NA EUV collaboration with ASML. The nearer test is whether Intel can add Xeon supply fast enough to turn data center demand into the revenue its fourth-quarter guidance leaves out.

## Sources

- [Intel Reports Third-Quarter 2026 Financial Results](https://www.intc.com/news-events/press-releases/detail/1786/intel-reports-third-quarter-2026-financial-results), Intel
- [Intel Form 8-K, October 29, 2026](https://www.sec.gov/Archives/edgar/data/0000050863/000005086326000188/q326earningsrelease.htm), SEC
- [Intel reports Q3 revenue up 21% YoY to $16.5B (CNBC, via Techmeme)](https://www.techmeme.com/261029/p49#a261029p49), Techmeme