Intel (INTC) Q3 2026 Earnings Report

The call was broadly positive, driven by an eighth consecutive quarterly beat, nearly 80% year-over-year DCAI growth, improving Intel 3 and Intel 18A yields and strong demand across server CPUs and purpose-built silicon. However, the company faces significant near-term challenges from PC market weakness, memory shortages, substrate and manufacturing constraints, the Israel factory shutdown, an ongoing Foundry operating loss and expected negative free cash flow in 2027. Highlights significantly outweighed the lowlights, although management acknowledged substantial execution work remains.

Intel guided Q4 revenue to a range of $15 billion to $16 billion, with a midpoint of $15.5 billion, non-GAAP gross margin of 38%, a tax rate of 11% and EPS of $0.25; guidance includes an impact of roughly $300 million to revenue and 200 basis points to gross margin from Fab 28. DCAI revenue is expected to grow mid-teens percent sequentially, with purpose-built silicon growing faster than DCAI overall, while CCPG revenue is expected to decline greater than 20% sequentially. Non-GAAP operating expenses are expected to be approximately $4.4 billion in Q4 and approximately $16.3 billion for the full year, NCI approximately $250 million in Q4 and approximately $1.1 billion in both 2027 and 2028, and Q4 fully diluted share count 5.44 billion. Industry server CPU units are expected to grow more than 30% in both 2026 and 2027, the 2026 PC unit TAM is expected to decline approximately 12% with second half units down more than 20%, and 2027 PC unit TAM is expected to decline roughly 10%. 2026 gross capital expenditures remains on track to be $20 billion, 2027 gross capital spending is expected to be up strongly, and the company expects next year to be an investment year with probably not a dynamic where we're going to have positive free cash flow next year, while targeting at least 20% ROI on all of these nodes and long-term double-digit revenue growth.