Intel (NASDAQ:INTC) Releases Earnings Results, Beats Expectations By $0.11 EPS

Intel (NASDAQ:INTC) posted its quarterly earnings data on Thursday. The chip maker reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.11, FiscalAI reports. The company had revenue of $16.51 billion during the quarter, compared to analysts’ expectations of $16.54 billion. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%.

Here are the key takeaways from Intel’s conference call:

• Q3 exceeded expectations, with revenue of $16.5 billion, non-GAAP gross margin of 44.1%, and EPS of $0.52, supported by stronger revenue, improved yields, favorable mix, and disciplined spending.
• Data Center and AI revenue rose sharply, with DCAI revenue up nearly 80% year over year to $7.3 billion and demand continuing to exceed available supply. Purpose-built silicon revenue more than doubled year over year, while Granite Rapids became the largest server product family.
• The PC market deteriorated materially because of memory shortages, higher system prices, and constrained IT budgets. Intel expects PC unit TAM to decline about 12% in 2026 and roughly 10% in 2027, with an inventory correction extending through at least the first quarter.
• Intel guided Q4 revenue to $15 billion-$16 billion, gross margin to 38%, and EPS to $0.25, including an estimated $300 million revenue impact and 200 basis points of margin pressure from the Israel factory shutdown. CCPG revenue is expected to fall more than 20% sequentially.
• Intel is significantly increasing investment to expand capacity for server CPUs and advanced manufacturing, with 2027 capital spending expected to rise strongly. Management said 2027 will likely be an investment year with negative free cash flow, while emphasizing that improving Intel 3 and 18A yields and future 14A production should support longer-term growth and profitability.

Intel Stock Down 3.6%

Shares of NASDAQ:INTC traded down $3.46 during midday trading on Thursday, reaching $92.07. The company had a trading volume of 120,984,652 shares, compared to its average volume of 115,476,555. Intel has a 1-year low of $32.89 and a 1-year high of $142.35. The stock has a market cap of $464.40 billion, a PE ratio of -43.63, a P/E/G ratio of 9.23 and a beta of 2.22. The company has a quick ratio of 1.25, a current ratio of 1.60 and a debt-to-equity ratio of 0.47. The business’s 50 day moving average price is $101.65 and its 200 day moving average price is $86.02.

Analysts Set New Price Targets

INTC has been the topic of several research reports. Sanford C. Bernstein upgraded Intel from a “hold” rating to an “outperform” rating in a research note on Monday, October 19th. Bank of America reduced their price target on Intel from $160.00 to $145.00 and set a “buy” rating for the company in a research report on Wednesday, August 12th. Seaport Research Partners reaffirmed a “buy” rating and set a $125.00 price target on shares of Intel in a research note on Friday, July 24th. Pivotal Research started coverage on shares of Intel in a report on Tuesday, September 8th. They issued a “buy” rating on the stock. Finally, Weiss Ratings lowered shares of Intel from a “hold (c-)” rating to a “sell (d)” rating in a research report on Friday, October 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, twenty-six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Intel has a consensus rating of “Hold” and a consensus target price of $108.23.

Insider Buying and Selling

In related news, CEO Lip Bu Tan purchased 105,263 shares of Intel stock in a transaction that occurred on Tuesday, August 11th. The stock was purchased at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the completion of the transaction, the chief executive officer owned 1,314,669 shares of the company’s stock, valued at approximately $124,893,555. This trade represents a 8.70% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.05% of the company’s stock.

Intel News Roundup

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Data Center and AI revenue rose 78% year over year to $7.3 billion, while operating income from the business roughly tripled. Intel Foundry revenue also increased 58% to $6.7 billion, highlighting progress in higher-growth businesses. Intel Server Sales Jump 78%, Q4 Outlook Dims
• Positive Sentiment: Third-quarter revenue increased 21% to approximately $16.5 billion, and reported earnings per share of $0.52 exceeded the consensus estimate of $0.41. Intel also generated $5.1 billion in operating cash flow. Intel Q3 Revenue Rises 21% to $16.5 Billion
• Neutral Sentiment: Intel’s planned $2.3 billion acquisition of quantum-computing software company Classiq could broaden its technology portfolio and support a full-stack quantum strategy, but the deal adds spending and is unlikely to materially improve near-term results. Intel to Acquire Classiq
• Negative Sentiment: Fourth-quarter guidance fell well below Wall Street expectations: Intel projected revenue of $15 billion to $16 billion and adjusted EPS of $0.25, versus analyst expectations of roughly $17.3 billion and $0.45. Management attributed the outlook to continued PC-market weakness and said the slowdown could persist through at least the first half of next year. Intel Stock Plunges as PC Slowdown Drives Weak Guidance
• Negative Sentiment: Third-quarter GAAP net income declined to $3.3 billion from $4.1 billion a year earlier, while GAAP EPS fell to $0.60 from $0.90. A factory explosion in Israel also added an operational risk to an already cautious outlook. Intel Forecast Disappoints as PC Weakness Weighs

Intel Company Profile

Intel Corporation (NASDAQ:INTC) is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for networking, edge computing, graphics, and artificial intelligence workloads.

Through Intel Foundry, the company also provides semiconductor manufacturing and technology-development services for external customers. Intel develops process technologies, advanced packaging, and other manufacturing capabilities intended to support its own products and third-party chip designs.

Founded in 1968 by Robert Noyce and Gordon Moore, Intel helped establish the modern microprocessor industry and has historically supplied processors for PCs, servers, and other computing systems.