In brief
Intel announced that its third‑quarter revenue increased 21 % year over year to $16.51 bn, powered by a 78 % jump in data‑center and AI sales. Net income slipped 18 % to $3.32 bn, as earnings per share fell. The company forecasts fourth‑quarter revenue of $15–$16 bn and a lower gross margin of 37.1 %.
Intel Inc. released its third‑quarter financial results on Thursday, reporting a 21 percent rise in revenue to $16.51 billion on a year‑over‑year basis, while net income dropped 18 percent to $3.32 billion, according to a Xinhua news report released at 06:36 UTC on October 29, 2026.
The data‑center and artificial intelligence segment drove much of the revenue growth, with sales in that area up 78 percent year‑over‑year to $7.3 billion—Intel’s strongest data‑center growth in 15 years. In contrast, the Client Computing and Physical AI Group reported a 5 percent decline in revenue to $8.1 billion, reflecting ongoing challenges in the personal computer market.
The semiconductor manufacturing business, Intel Foundry, generated $6.7 billion in revenue, a 58 percent increase from the same period last year. This figure included transactions with other Intel business units.
Earnings per share for the quarter fell under both GAAP and non‑GAAP measures: diluted earnings per share declined to $0.60 from $0.90, while non‑GAAP diluted earnings per share rose modestly to $0.52 from $0.23.
Gross margin improved to 43 percent in Q3 from 38.2 percent a year earlier, but Intel projects a down‑shift to a 37.1 percent GAAP gross margin in the fourth quarter.
Intel’s CEO, Lip‑Bu Tan, said on Friday that demand for the company’s central processing units remained robust despite near‑term headwinds in the PC industry. He added that increasing supply to meet demand for Xeon server processors was an immediate priority.
"Demand for the company's central processing units remained robust despite near‑term headwinds in the PC industry," said Lip‑Bu Tan. "Increasing supply to meet demand for Xeon server processors was an immediate priority."
The company forecasted fourth‑quarter revenue in the range of $15 billion to $16 billion, with diluted earnings per share under GAAP expected at $0.10 and non‑GAAP at $0.25, the report added.
Intel’s comprehensive report highlighted the company’s strategic focus on high‑performance server and AI workloads, while noting the continued pressure on the personal computing market. The earnings decline, driven largely by lower client computing revenues, was offset by the surge in the data‑center and AI segment and the growth in the foundry business.
