Q3 beat expectations on both revenue and earnings, yet the stock plunged after hours—the takeaway from Intel’s earnings report: a win for the quarter, a loss on guidance.
Intel ($INTC ) reported its 2026 third-quarter results after the U.S. market closed on October 29:
1. Revenue was $16.5 billion, up 21% year over year from about $13.7 billion in the same quarter last year. Non-GAAP earnings per share were $0.52, versus $0.23 a year ago, beating market expectations of about $0.39–$0.40. Revenue was broadly in line with expectations.
2. Performance varied across segments: Data Center and AI revenue was $7.3 billion, up 78% year over year; the CFO called it the strongest data center growth in 15 years. Foundry revenue was $6.7 billion, up 58%. Client Computing and Physical AI revenue was $8.1 billion, down 5% year over year, with PCs as the weak spot.
3. The fourth-quarter outlook was the turning point: revenue guidance of $15 billion to $16 billion, non-GAAP EPS of $0.25, and a non-GAAP gross margin of 38.0%. The market had expected revenue of about $17.02 billion and non-GAAP EPS of about $0.44, putting the midpoint of revenue guidance roughly $1.5 billion below expectations. The stock fell about 18% after hours.
My take: the verdict on this report had already shifted from the quarter just ended to the next one. The data center handoff is real, but so is the drag from client computing. Non-GAAP gross margin fell from 44.1% in Q3 to a Q4 guidance of 38.0%—a gap that deserves more scrutiny than revenue alone. If management can clearly explain the capacity ramp and when PC demand will stop falling on the earnings call, the after-hours decline could narrow. If it confirms that the slowdown in PCs will last at least through the first half of next year and that margins will remain under pressure, the market will revalue the stock based on guidance first and discuss a turnaround later. Don’t chase the first move after hours on earnings night. Wait for the call to unpack guidance and gross margin, then assess the direction.
Data as of: 2026-10-29 20:50 UTC
For informational purposes only; this is not investment advice.
Intel ($INTC ) reported its 2026 third-quarter results after the U.S. market closed on October 29:
1. Revenue was $16.5 billion, up 21% year over year from about $13.7 billion in the same quarter last year. Non-GAAP earnings per share were $0.52, versus $0.23 a year ago, beating market expectations of about $0.39–$0.40. Revenue was broadly in line with expectations.
2. Performance varied across segments: Data Center and AI revenue was $7.3 billion, up 78% year over year; the CFO called it the strongest data center growth in 15 years. Foundry revenue was $6.7 billion, up 58%. Client Computing and Physical AI revenue was $8.1 billion, down 5% year over year, with PCs as the weak spot.
3. The fourth-quarter outlook was the turning point: revenue guidance of $15 billion to $16 billion, non-GAAP EPS of $0.25, and a non-GAAP gross margin of 38.0%. The market had expected revenue of about $17.02 billion and non-GAAP EPS of about $0.44, putting the midpoint of revenue guidance roughly $1.5 billion below expectations. The stock fell about 18% after hours.
My take: the verdict on this report had already shifted from the quarter just ended to the next one. The data center handoff is real, but so is the drag from client computing. Non-GAAP gross margin fell from 44.1% in Q3 to a Q4 guidance of 38.0%—a gap that deserves more scrutiny than revenue alone. If management can clearly explain the capacity ramp and when PC demand will stop falling on the earnings call, the after-hours decline could narrow. If it confirms that the slowdown in PCs will last at least through the first half of next year and that margins will remain under pressure, the market will revalue the stock based on guidance first and discuss a turnaround later. Don’t chase the first move after hours on earnings night. Wait for the call to unpack guidance and gross margin, then assess the direction.
Data as of: 2026-10-29 20:50 UTC
For informational purposes only; this is not investment advice.
