Everything You Need to Know
Intel (Nasdaq: INTC) reported Q3 earnings after the bell, and investors like what they see.
Here are the key things to know from earnings.
The Good:
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Adjusted EPS of $.23 beat Wall Street expectations of $.01.
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Revenue of $13.7 billion also beat expectations of $13.4 billion
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Intel’s Client Computing and Data Center and AI groups both soundly exceeded expectations.
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Intel’s CFO said “Current demand is outpacing supply, a trend we expect will persist into 2026.”
The Bad:
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Guidance for next quarter wasn’t great. Revenue guidance of $12.8 billion to $13.8 billion is below Wall Street’s current expectations of $13.37 billion at the midpoint. EPS guidance of $.08 matches Wall Street’s expectations.
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The company’s Foundry unit – which is critical for Intel’s rebound – missed estimates. Intel Foundry Revenue reported $4.2 billion in revenue, which is below the $4.5 billion in sales Wall Street expected.
Yet, as we noted earlier, shares of Intel are up 7.7% as of 4:40 p.m. ET, so investors clearly are more focused on the positives than the negatives from tonight’s earnings report.
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Adj. EPS: $0.23 [✅]; UP +150% YoY
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Revenue: $13.7B (Est. $13.7B) [✅]; UP +3% YoY
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Adj. Gross Margin: 40.0% [✅]; UP +220 bps YoY
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Net Income: $4.1B [✅]; UP +124% YoY
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Cash from Operations: $2.5B
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Client Computing Group (CCG) Revenue: $8.5B [✅]; UP +5% YoY
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Data Center and AI (DCAI) Revenue: $4.1B [⚠️]; DOWN -1% YoY
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Intel Foundry Revenue: $4.2B [⚠️]; DOWN -2% YoY
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All Other Revenue: $1.0B [✅]; UP +3% YoY
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Adj. Operating Income: $1.5B [✅]; UP +164% YoY
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Adj. Operating Expenses: $3.9B [✅]; DOWN -17% YoY
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R&D Expenses: $4.4B [✅]; DOWN -20% YoY
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Effective Tax Rate: 6.6% (vs. -87.0% YoY)
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Free Cash Flow: $896M
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Lip-Bu Tan: “Our Q3 results reflect improved execution and steady progress against our strategic priorities. AI is accelerating demand for compute and creating attractive opportunities across our portfolio, including our core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services. Intel’s industry-leading CPUs and ecosystem, along with our unique U.S.-based leading-edge logic manufacturing and R&D, position us well to capitalize on these trends over time.”
