Intel Q3 Revenue Rises 21% as Data Center and AI Sales Jump 78%

Intel Corporation (INTC ) on October 29, 2026 reported third-quarter revenue of US$16.5 billion, up 21% from a year earlier, and forecast fourth-quarter revenue of $15.0 billion to $16.0 billion, according to the company’s third-quarter earnings release.

The results cover the quarter ended September 26, 2026. Net revenue was $16,513 million, compared with $13,653 million in the third quarter of 2025. Diluted earnings per share attributable to Intel was $0.60 on a GAAP basis, down 33% from $0.90, and $0.52 on a non-GAAP basis, up 126% from $0.23. Net income attributable to Intel was $3.3 billion under GAAP, down 18%, and $2.8 billion on a non-GAAP basis, up 169%. GAAP gross margin was 43.0%, up 4.8 percentage points from 38.2%, and non-GAAP gross margin was 44.1%. GAAP operating income was $2,522 million, an operating margin of 15.3%, and the non-GAAP operating margin was 19.6%. Research and development plus marketing, general and administrative expenses totaled $4.5 billion under GAAP, up 4%. Intel generated $5.1 billion in cash from operations in the quarter, and adjusted free cash flow was $1,639 million, compared with $896 million a year earlier.

Fourth-Quarter Outlook

For the fourth quarter of 2026, Intel forecast GAAP gross margin of approximately 37.1% and non-GAAP gross margin of approximately 38.0%, a GAAP tax rate of 31% and a non-GAAP tax rate of 11%, and GAAP EPS of $0.10 and non-GAAP EPS of $0.25, in addition to the revenue range of $15.0 billion to $16.0 billion. The company said the gross margin and EPS outlooks are based on the midpoint of the revenue range. Intel also projected fourth-quarter non-GAAP operating expenses of approximately $4.4 billion and full-year 2026 non-GAAP operating expenses of approximately $16.3 billion.

In its second-quarter release on July 23, 2026, Intel had forecast third-quarter revenue of $15.8 billion to $16.8 billion, GAAP EPS of $0.31 and non-GAAP EPS of $0.38, with GAAP gross margin of 41.0% and non-GAAP gross margin of 42.0%. “We delivered another solid quarter. Revenue, gross margin and earnings per share exceeded guidance, including our strongest data center revenue growth in 15 years,” chief financial officer David Zinsner said in the October 29, 2026 release.

Segment Results

Client Computing and Physical AI Group revenue was $8,097 million, down 5% from $8,535 million a year earlier, and segment operating income was $2,285 million, compared with $2,694 million. Data Center and AI revenue was $7,318 million, up 78% from $4,117 million, and segment operating income was $3,039 million, compared with $964 million. Total Intel Products revenue was $15,415 million, up 22%. Intel Foundry revenue was $6,697 million, up 58% from $4,235 million, and the foundry operating loss was $1,853 million, compared with $2,321 million a year earlier. All Other revenue was $692 million, down 30%, and intersegment eliminations were negative $6,291 million. Intel noted that operating segment revenues include intersegment transactions and are presented as actual and rounded, so totals may not sum.

The client segment was referred to as the Client Computing Group in the first quarter of 2026 and earlier periods. Intel also noted that Altera, previously a wholly owned subsidiary, was deconsolidated following the sale of 51% of its common stock on September 12, 2025, and that Altera’s results were included in Intel’s consolidated financial statements through September 11, 2025.

Chief executive Lip-Bu Tan said the results demonstrate improving execution, meaningful progress expanding supply and continued advancement of Intel’s process technology, and that demand for the company’s CPUs remains robust despite near-term headwinds across the PC industry. “Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family,” Tan said. Zinsner said Intel sees the PC slowdown continuing at least through the first half of 2027 and will continue making disciplined investments in capacity and working capital to increase supply and support future growth.

During the quarter, Intel completed a $23 billion public equity offering, which the company said supports future growth opportunities while maintaining a strong balance sheet and investment-grade rating. Intel’s cash flow statement for the nine months ended September 26, 2026 shows net proceeds of $22,617 million from the public offering of common stock. Intel also announced plans to acquire Classiq, a transaction the company said would combine Classiq’s quantum software synthesis platform with Intel’s spin-qubit manufacturing and software expertise to create a full-stack quantum computing platform. Separately, Intel announced plans for a multiyear collaboration with Oracle intended to expand Xeon-based computing on Oracle Cloud Infrastructure, including planned OCI X14 offerings powered by Intel’s next-generation server processor code-named Diamond Rapids.

In its foundry business, Intel released the Intel 14A 0.9 process design kit in October 2026 and completed the RAMP-C program, which the company said enables validated prototypes, ecosystem readiness and early customer engagement for Secure Enclave. Intel announced a collaboration with Lens Technology on advanced semiconductor packaging, a collaboration with ASML to accelerate industry readiness for High-NA EUV manufacturing, and work with Lam Research (LRCX ) and Applied Materials (AMAT ) on new facilities to expand capacity and enable joint research and development. Intel also appointed Dean Jarnac as executive vice president and chief sales officer.

Cash and cash equivalents were $21,846 million and short-term investments were $32,159 million at September 26, 2026; total assets were $228,574 million and debt was $46,317 million. For the nine months ended September 26, 2026, operating cash flow was $13,184 million; Intel issued $13,000 million of term debt, repaid $9,000 million and recorded $14,442 million in partner distributions. Total headcount was 81,100, compared with 88,400 a year earlier.

Third-quarter GAAP-to-non-GAAP reconciling items included a $1,005 million gain on the mark-to-market of Escrowed Shares and $54 million of restructuring and other charges. Intel said the Escrowed Shares item relates to the derivative liability recognized in connection with its Warrant and Common Stock Agreement with the U.S. government, under which shares held in escrow are released to the U.S. Department of Commerce as Intel performs and receives cash proceeds under its CHIPS Act Secure Enclave agreement, and that the restructuring adjustments primarily consist of charges associated with its 2025 Restructuring Plan.

Intel scheduled a public webcast for 2 p.m. Pacific time on October 29, 2026 to discuss the results, with the earnings presentation and webcast replay available on its investor relations website.