Intel Q3 2026 net income falls 18%, revenue rises 21%

Intel has reported a net income of $3.3bn for the third quarter (Q3) of 2026, a decrease of 18% compared to $4.1bn for the same period of 2025.

The decrease in profit came even as revenue for the quarter grew 21% year-on-year to $16.5bn.

Earnings per share (EPS) attributable to Intel fell to $0.60 compared with $0.90 in the prior-year quarter, a drop of 33%.

The company’s gross margin improved by 4.8 percentage points to 43%, up from 38.2% a year ago.

Operating margin rose to 15.3% from 5%, an increase of 10.3 percentage points.

Expenses for research and development (R&D) and for marketing, general and administrative (MG&A) activities rose to $4.5bn, which is a 4% rise from the corresponding period in 2025.

Intel reported an effective tax rate of 11.6%, up from 6.6% last year. Cash from operations for the quarter reached $5.1bn.

On a non-GAAP basis, Intel reported net income attributable to the company of $2.8bn, a 169% increase from $1bn in the third quarter of 2025.

Non-GAAP EPS increased to $0.52, up 126% versus $0.23 last year.

The company’s non-GAAP gross margin was 44.1%, up 4.1 percentage points, while non-GAAP operating margin improved to 19.6%, up from 11.2%.

Non-GAAP R&D and MG&A expenses rose 3% to $4.1bn. Segment results showed Intel Products revenue of $15.4bn, a 22% increase year-on-year.

Revenue from the Data Center and AI (DCAI) division grew 78% to $7.3bn, while the Client Computing and Physical AI Group (CCPG) recorded $8.1bn, down 5% compared to the previous year.

Intel Foundry revenue reached $6.7bn, an increase of 58%, while other segments generated $0.7bn, declining 30%.

During the third quarter, Intel completed a public equity offering valued at $23bn and disclosed plans to acquire Classiq.

The company also announced new collaborations with Oracle, SAP, AMD, Lens Technology, ASML, Lam Research, and Applied Materials.

Intel appointed Dean Jarnac as executive vice president and chief sales officer.

For the fourth quarter of 2026, Intel forecasts revenue between $15bn and $16bn.

The company expects diluted EPS attributable to Intel of $0.10, and non-GAAP diluted EPS of $0.25.

Forecasts for gross margin stand at 37.1% on a GAAP basis and 38.0% on a non-GAAP basis.

Intel projects a tax rate of 31% under GAAP and 11% on a non-GAAP basis.

Intel CEO Lip-Bu Tan said: “Our Q3 results demonstrate improving execution, meaningful progress expanding supply and continued advancement of our process technology.

“Despite near-term headwinds across the PC industry, demand for our CPUs remains robust, reinforcing our confidence in the long-term growth opportunities for our business.

“Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family, while strengthening our product portfolio and roadmap.

“We are moving with urgency and focus to capitalise on these opportunities to deliver sustainable growth and long-term shareholder value.”