Intel stock faces weak fourth-quarter outlook after Q3 beat

Intel reported stronger-than-expected third-quarter results on Thursday, October 29, but its fourth-quarter outlook fell short of Wall Street expectations. The company said PC weakness would persist, putting the near-term focus on server demand, supply constraints and execution in its manufacturing network.

According to Intel's earnings release, third-quarter revenue increased 21 percent from a year earlier to 16.5 billion US dollars. Non-GAAP earnings per diluted share reached 0.52 US dollars, compared with 0.23 US dollars in the year-earlier period. GAAP diluted earnings per share were 0.60 US dollars, down from 0.90 US dollars.

Server demand offsets PC weakness

The business mix remained sharply divided. Data Center and AI revenue rose 78 percent year over year to 7.3 billion US dollars, while Client Computing and Physical AI revenue declined 5 percent to 8.1 billion US dollars. Intel Foundry revenue increased 58 percent to 6.7 billion US dollars. The company said strong data-center demand was constrained by available supply, while higher memory costs and limited IT budgets weighed on PC purchases.

Intel's non-GAAP gross margin reached 44.1 percent in the quarter, up from 40.0 percent a year earlier. The company also generated 5.1 billion US dollars in cash from operations during the quarter. These figures point to improved operating execution, but they do not remove the pressure from the client business or the need for continued manufacturing investment.

Fourth-quarter forecast disappoints

Intel guided for fourth-quarter revenue of 15.0 billion to 16.0 billion US dollars, with non-GAAP diluted earnings per share of 0.25 US dollars and a non-GAAP gross margin of 38.0 percent. CNBC reported that analysts had expected 17.1 billion US dollars in revenue and adjusted earnings per share of 0.43 US dollars. Intel's CFO David Zinsner said the PC slowdown could continue through at least the first half of 2027.

Management is still positioning server CPUs and artificial-intelligence workloads as longer-term growth drivers. CEO Lip-Bu Tan said Intel's priority was to unlock additional supply for its Xeon product family, while the company plans disciplined investments in capacity and working capital. The outlook therefore combines strong demand in data-center products with a difficult near-term correction in PCs.

Intel stock trades below Xetra close

The real-time quote of Intel stock stood at 55.33 euros on Lang & Schwarz at 1:48 p.m. CET on Tuesday, November 3, 2026, 1.76 percent below the Xetra close of Monday, November 2, at 56.32 euros. The comparison uses the last completed Xetra session because the current session had not ended at the quote time.

The reaction leaves investors weighing two opposing signals: accelerating data-center demand and a strong quarterly beat on one side, against PC inventory pressure, supply limitations and lower fourth-quarter profitability on the other. Intel's ability to convert server demand into additional shipments will remain central to the investment case.

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More news and analyses on Intel stock are available in the topic overview.

Intel Corporation

• ISIN: US4581401001
• Ticker: INTC
• Primary exchange: Nasdaq
• Lang & Schwarz quote: 55.33 euros, November 3, 2026, 1:48 p.m. CET
• Xetra close: 56.32 euros, November 2, 2026
• Sector: Technology
• Industry: Semiconductors