Intel Q3 2026: Data Center Revenue Surges 78%, but Q4 Faces a Step Down
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Data Center and AI revenue jumped 78% to $7.32 billion, carrying the quarter past expectations. The catch is Q4 guidance of $15.0 billion to $16.0 billion, a sequential step down, with management warning the PC slowdown runs at least through the first half of 2027.
Continue ReadingShow less
Intel's Data Center and AI segment delivered $7.32 billion in revenue, up 78% from a year earlier and the strongest data center growth the company has seen in 15 years. Adjusted earnings of $0.52 per share beat expectations.
The data center strength more than covered a 5% decline in client computing revenue, where PC industry headwinds have taken a visible toll. CEO Lip-Bu Tan acknowledged those near-term pressures but pointed to underlying CPU demand, and called unlocking additional supply for the Xeon family the company's immediate priority.
Sponsored
Intel Foundry revenue rose 58% year over year, though the segment continued to post an operating loss. Operating cash flow nearly doubled from a year earlier, and the company completed a $23 billion public equity offering during the period.
Intel guided Q4 revenue of $15.0 billion to $16.0 billion, a sequential step down from Q3. Management was explicit that the PC slowdown is expected to persist through at least the first half of 2027, making the trajectory of data center demand the variable that matters most for how the stock trades from here.
Mentioned: INTC