Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier, while net income fell 18% to $3.3 billion. Data center and artificial intelligence sales grew sharply as client computing revenue declined. Adjusted earnings per share increased, and management forecast fourth-quarter revenue of $15 billion to $16 billion amid constraints on server chip supply.
Intel, the semiconductor designer and manufacturer, reported third-quarter revenue of $16.5 billion on October 29, up 21% from a year earlier. Adjusted diluted earnings per share reached $0.52. Cash generated by operations reached $5.1 billion during the quarter. The company’s adjusted operating margin rose from 11.2% to 19.6%.[1], [2]
Under generally accepted accounting principles, net income attributable to Intel fell 18%, from $4.1 billion to $3.3 billion. Diluted earnings per share declined from $0.90 to $0.60. The reported gross margin nevertheless increased from 38.2% to 43.0%. Data Center and AI revenue rose 78% to $7.3 billion, while Client Computing and Physical AI revenue fell 5% to $8.1 billion.[1]
Management forecast fourth-quarter revenue of $15 billion to $16 billion, with reported diluted earnings per share of $0.10 and adjusted earnings of $0.25. Chief Financial Officer David Zinsner said he expected the personal computer slowdown to continue through at least the first half of 2027. Chief Executive Officer Lip-Bu Tan identified expanding supply for Xeon server processors as an immediate priority.[1]
