Intel stock faces weak Q4 outlook after strong third quarter

Intel reported stronger-than-expected execution in the third quarter ended September 26, 2026, but warned that weakness in the personal-computer market would weigh on the next quarter. The results and outlook were released by Intel on Thursday, October 29, after the market close, in a financial release carried by Morningstar.

Server demand drives quarterly growth

Revenue rose 21 percent from the year-earlier quarter to USD 16.5 billion. GAAP diluted earnings per share came in at USD 0.60, while adjusted diluted earnings per share reached USD 0.52, compared with USD 0.23 a year earlier.

Profitability also improved. GAAP gross margin increased to 43.0 percent from 38.2 percent, and non-GAAP gross margin reached 44.1 percent from 40.0 percent. Intel generated USD 5.1 billion in operating cash flow during the quarter. Adjusted free cash flow was USD 1.639 billion, according to the release.

The strongest operating contribution came from Data Center and AI. Revenue in the division increased 78 percent year over year to USD 7.3 billion, with operating income of USD 3.039 billion. Intel said the segment posted its strongest revenue growth in 15 years. Foundry revenue rose 58 percent to USD 6.7 billion, although the business recorded an operating loss of USD 1.853 billion.

PC weakness clouds the outlook

Client Computing and Physical AI revenue declined 5 percent to USD 8.1 billion. Management pointed to a weaker PC environment and said the slowdown is expected to continue at least through the first half of next year. That pressure contrasts with the demand Intel is seeing for Xeon server processors and its expanding data-center business.

For the fourth quarter, Intel forecasts revenue between USD 15.0 billion and USD 16.0 billion. The midpoint implies a sequential slowdown from the third-quarter result. The company expects GAAP diluted earnings per share of USD 0.10 and non-GAAP diluted earnings per share of USD 0.25, with adjusted gross margin of 38.0 percent.

Chief Executive Lip-Bu Tan said Intel's priorities are to increase supply, advance its process technology and capture demand for Xeon products. Chief Financial Officer David Zinsner said the company would continue disciplined investment in capacity and working capital while the PC market remains under pressure.

Intel stock traded at EUR 61.41 on Lang & Schwarz at 11:11 CET on Friday, October 30, 2026. Investors are weighing the widening gap between data-center momentum and the near-term client-market correction, while the fourth-quarter forecast sets a lower bar for the next earnings cycle.

For the real-time quote of Intel stock, market participants can follow the ongoing Lang & Schwarz session.

Broader sentiment will also be shaped by the S&P 500 and its read-through for semiconductor valuations.

More news and analyses on Intel stock will focus on supply expansion, PC demand and the delivery of the next-generation product roadmap.

Intel Corporation at a glance

• Company: Intel Corporation
• ISIN: US4581401001
• Primary ticker: INTC
• Home exchange: Nasdaq
• Lang & Schwarz quote: EUR 61.41 at 11:11 CET on Friday, October 30, 2026
• Third-quarter revenue: USD 16.5 billion for the period ended September 26, 2026
• Fourth-quarter revenue outlook: USD 15.0 billion to USD 16.0 billion
• Sector: Semiconductors