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

Intel (NASDAQ:INTC) issued its quarterly earnings data on Thursday. The chip maker reported $0.52 EPS for the quarter, beating the consensus estimate of $0.41 by $0.11, FiscalAI reports. Intel had a positive return on equity of 4.55% and a negative net margin of 20.09%. The firm had revenue of $16.51 billion during the quarter, compared to analyst estimates of $16.56 billion. During the same quarter in the prior year, the business posted $0.23 EPS. The business’s revenue for the quarter was up 20.9% compared to the same quarter last year.

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 Price Performance

Shares of INTC opened at $65.76 on Friday. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.60 and a quick ratio of 1.25. The company’s fifty day moving average price is $101.10 and its 200-day moving average price is $86.36. Intel has a 1-year low of $32.89 and a 1-year high of $142.35. The firm has a market capitalization of $331.69 billion, a PE ratio of -27.29, a price-to-earnings-growth ratio of 9.78 and a beta of 2.22.

Insider Transactions at Intel

In other news, CEO Lip Bu Tan bought 105,263 shares of Intel stock in a transaction that occurred on Tuesday, August 11th. The stock was bought at an average price of $95.00 per share, for a total transaction 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 approximately $124,893,555. The trade was a 8.70% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.05% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

INTC has been the topic of several research analyst reports. Robert W. Baird set a $83.00 target price on Intel in a research note on Friday. Barclays upgraded Intel from a “hold” rating to an “overweight” rating in a research note on Wednesday, September 16th. Sanford C. Bernstein raised Intel from a “hold” rating to an “outperform” rating in a report on Monday, October 19th. UBS Group lowered Intel from a “buy” rating to a “hold” rating and set a $90.00 price target on the stock. in a research note on Friday. Finally, Mizuho upped their price objective on shares of Intel from $92.00 to $114.00 and gave the company a “neutral” rating in a report on Tuesday, October 6th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, twenty-seven have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Intel presently has a consensus rating of “Hold” and a consensus price target of $97.86.

Intel News Roundup

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel exceeded third-quarter expectations, reporting adjusted earnings of $0.52 per share versus a roughly $0.41 consensus estimate. Revenue increased 21% year over year to approximately $16.5 billion. Intel third-quarter earnings report
• Positive Sentiment: Data Center and AI revenue rose 78% to $7.3 billion, while Intel Foundry revenue increased 58% to $6.7 billion. CEO Lip-Bu Tan also highlighted the potential for AI agents to expand the server CPU market. Intel server and AI revenue coverage
• Neutral Sentiment: Intel agreed to acquire Israeli quantum software company Classiq Technologies for about $2.3 billion, seeking to build a full-stack quantum-computing business. The deal may provide a long-term growth option but adds to near-term spending and execution demands. Intel Classiq acquisition
• Negative Sentiment: Fourth-quarter guidance was well below Wall Street expectations: revenue is projected at $15 billion-$16 billion, versus approximately $17.1 billion expected, with adjusted earnings of about $0.25 per share versus roughly $0.45 expected. Management said the PC slowdown could persist through at least the first half of 2027. Reuters Intel outlook report
• Negative Sentiment: Memory shortages and higher component prices are making PCs more expensive, while Intel expects client-computing revenue to weaken. A blast at its Israel facility is expected to cause roughly $300 million-$600 million in revenue disruption, adding to manufacturing constraints. Intel PC slowdown and Israel facility report
• Negative Sentiment: Analysts responded with multiple downgrades and price-target reductions, citing weak PC demand, supply bottlenecks, lower margins, heavy foundry investment and the risk that Intel may not generate free cash flow in 2027. The outlook also triggered a broad semiconductor selloff, pressuring AMD, Nvidia, Broadcom and other chip stocks. Analyst reactions to Intel earnings

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.