TLDR
- Intel (INTC) stock fell about 26% to around $68 in premarket trading Friday, from a $92.07 close Thursday.
- Q3 adjusted EPS of 52 cents beat the 41 cents expected, and revenue rose 21% to $16.5 billion.
- Q4 guidance missed: EPS of 25 cents versus 45 cents expected, and revenue of $15 billion to $16 billion versus about $17.3 billion.
- PC revenue weakened and an Israel plant explosion cut about $300 million from Q4 revenue.
- Data center and AI revenue jumped 78%, and foundry revenue rose 58% to $6.7 billion.
Intel (INTC) stock fell about 26% to around $68 in premarket trading Friday. It closed Thursday at $92.07 ahead of the third-quarter report.
The drop followed a weak fourth-quarter outlook. Intel also pointed to a fatal explosion at one of its plants in Israel.
The stock is still up about 150% since the start of the year. It was already down 35% from its June 22 record high before the report.
Q3 Results Beat on Earnings
Adjusted earnings per share were 52 cents, up from 23 cents a year ago. Analysts had expected 41 cents, according to FactSet.
INTEL $INTC Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $16.5B (Est. $16.5B) 🟡; +21% YoY
🔹 Adj. EPS: $0.52 (Est. $0.40) 🟢; +126% YoY
🔹 GAAP EPS: $0.60
🔹 Non-GAAP GM: 44.1% (Est. 42.1%) 🟢; +410 bps YoY
🔹 Gross CapEx: $4.2B; -43% YoYQ4 Guide:
🔹 Revenue: $15.0B-$16.0B (Est.… pic.twitter.com/xV0e9xZBtp— Wall St Engine (@wallstengine) October 29, 2026
Revenue rose 21% year over year to $16.5 billion. That was in line with or just shy of the $16.6 billion some analysts expected.
Data center and AI revenue jumped 78% from a year ago. Data center sales topped $7.3 billion against an estimate of $6.6 billion.
The Intel Product segment brought in $15.4 billion versus an estimate of $15.5 billion. PC chip sales hit $8.1 billion, missing a target of $8.8 billion.
Client computing revenue fell 5% from last year. John Pitzer, Intel’s head of investor relations, said the PC market weakened faster than the company expected.
Two things are hurting PCs. Last year’s Windows 10 end of support created a tough comparison, and rising PC prices are eating into demand.
High memory chip prices have also changed buying patterns. Pitzer said PC weakness is likely to stay a headwind next year.
Weak Q4 Guidance
Intel expects adjusted earnings of 25 cents per share for the fourth quarter. Wall Street had looked for 45 cents.
Revenue guidance is $15 billion to $16 billion. Analysts had expected about $17.3 billion.
The explosion in Israel killed two employees and disrupted production. Intel says it accounts for roughly $300 million of the revenue miss.
Foundry revenue rose 58% to $6.7 billion, ahead of the $6.1 billion estimate. The unit still posted an operating loss of $1.9 billion.
Intel says it sees strong interest in its chip-packaging technology. It also says chip output at its plants is beating expectations.
The Information reported that Google ordered 3 million custom Tensor Processing Units from Intel’s foundry. Nvidia is also reportedly in talks to have Intel build its chips.
Reuters reports Intel is in talks with SK Hynix about leasing space at its Ohio facility. Intel stock was trading near $68 before Friday’s open.
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