Gökhan Ergöçün
29 October 2026•Update: 29 October 2026
US semiconductor producer Intel reported a 21% year-on-year increase in third-quarter revenue to $16.5 billion on Thursday, driven by robust demand for its data center and artificial intelligence processors.
Revenue rose from $13.7 billion in the third quarter of 2025, topping company guidance, according to its financial results statement.
The Data Center and AI group led the performance with revenue surging 78% year-on-year to $7.3 billion, delivering the segment's fastest growth rate in 15 years.
Intel Foundry revenue climbed 58% year-on-year to $6.7 billion during the quarter.
In contrast, revenue in the Client Computing and Physical AI Group fell 5% to $8.1 billion, reflecting persistent weakness across the personal computer market.
Under generally accepted accounting principles, net income attributable to Intel declined 18% to $3.3 billion, or $0.60 per diluted share, down from $4.1 billion, or $0.90 per share, a year earlier.
On an adjusted basis, non-GAAP net income surged 169% to $2.8 billion, or $0.52 per diluted share, compared with $1.0 billion, or $0.23 per share, in the third quarter of 2025.
Gross margin improved to 43% from 38.2% a year earlier, while the operating margin expanded to 15.3% from 5%.
"Our Q3 results demonstrate improving execution, meaningful progress expanding supply and continued advancement of our process technology," said Lip-Bu Tan, chief executive of Intel.
"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," Tan added.
David Zinsner, chief financial officer of Intel, warned that the slowdown in personal computer demand is expected to continue through at least the first half of 2027.
During the quarter, the company completed a $23 billion public equity offering to strengthen its balance sheet and announced plans to acquire quantum software platform Classiq.
For the fourth quarter of 2026, Intel expects revenue between $15 billion and $16 billion, with diluted earnings per share projected at $0.10 on a GAAP basis and $0.25 on a non-GAAP basis.
