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

Intel (NASDAQ:INTC) announced its quarterly earnings data on Thursday. The chip maker reported $0.52 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.11, FiscalAI reports. The company had revenue of $16.51 billion during the quarter, compared to analyst estimates of $16.56 billion. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The firm’s revenue for the quarter was up 20.9% on a year-over-year basis. During the same quarter last year, the business posted $0.23 EPS.

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 Trading Down 3.6%

INTC stock opened at $92.07 on Friday. The company has a quick ratio of 1.25, a current ratio of 1.60 and a debt-to-equity ratio of 0.47. Intel has a 52-week low of $32.89 and a 52-week high of $142.35. The company’s 50-day simple moving average is $101.63 and its 200-day simple moving average is $86.25. The firm has a market cap of $464.40 billion, a P/E ratio of -43.63, a PEG ratio of 10.14 and a beta of 2.22.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Wedbush reiterated a “neutral” rating and set a $98.00 price objective on shares of Intel in a research note on Tuesday. Tigress Financial raised their price objective on Intel from $118.00 to $145.00 and gave the stock a “buy” rating in a research report on Tuesday, September 15th. Pivotal Research assumed coverage on Intel in a research note on Tuesday, September 8th. They set a “buy” rating on the stock. DA Davidson upped their target price on Intel from $77.00 to $100.00 and gave the company a “neutral” rating in a research report on Friday, July 24th. Finally, TD Cowen decreased their price target on Intel from $115.00 to $95.00 and set a “hold” rating for the company in a research note on Monday, October 19th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, twenty-six have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Intel has a consensus rating of “Hold” and an average target price of $104.61.

Insider Buying and Selling

In other Intel news, CEO Lip Bu Tan bought 105,263 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the purchase, the chief executive officer directly owned 1,314,669 shares of the company’s stock, valued at $124,893,555. This trade represents a 8.70% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 0.05% of the company’s stock.

Key Headlines Impacting Intel

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel reported third-quarter adjusted earnings of $0.52 per share, above the roughly $0.40–$0.41 consensus, while revenue rose 21% year over year to $16.5 billion. Data Center and AI revenue surged 78% to $7.3 billion, and Intel Foundry revenue increased 58%. Intel Q3 Revenue Rises 21% to $16.5 Billion
• Positive Sentiment: CEO Lip-Bu Tan said AI agents could expand the server CPU market toward $200 billion, offering a potential long-term growth opportunity despite current execution challenges. Intel Server CPU Market Outlook
• Neutral Sentiment: Intel’s turnaround remains dependent on converting strong AI and data-center demand into reliable supply, while its costly foundry expansion continues to require substantial investment. Intel PC Slowdown and Foundry Risks
• Negative Sentiment: Intel guided for fourth-quarter revenue of $15 billion to $16 billion and adjusted EPS of about $0.25, well below analyst expectations of approximately $17.3 billion in revenue and $0.45 EPS. The outlook also implies lower margins and earnings than in the third quarter. Intel Shares Tumble on Weak Guidance
• Negative Sentiment: Management said the PC slowdown arrived sooner and was deeper than expected and could persist through at least the first half of next year. Higher memory prices and constrained corporate laptop budgets are adding pressure to client-computing demand. Intel Blames PC Slowdown for Weak Guidance
• Negative Sentiment: A factory explosion in Israel and manufacturing bottlenecks are creating additional supply and execution risks. Analysts responded by cutting EPS estimates, downgrading Intel, and reducing price targets, with Bank of America lowering its target from $145 to $100. Analyst Cuts Intel Price Target
• Negative Sentiment: The disappointing forecast triggered broader semiconductor weakness, weighing on AMD, Dell, HP and other chip-related stocks as investors reassessed PC demand and the cost of AI infrastructure. Intel Results Pressure Technology Stocks

About Intel

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.