Key Highlights

  • Net Revenue was $16.5 billion, up from $13.7 billion in the third quarter of 2025.
  • Data Center and AI revenue increased 78% to $7.3 billion, while client computing revenue fell 5%.
  • Gross Margin was 43.0%, compared with 38.2% a year earlier.
  • Operating income was $2.5 billion, against $683 million a year ago, and diluted EPS was $0.60.
  • Cash and short-term investments totaled $54.0 billion at September 26, 2026.

Data center Demand carries third-quarter revenue to $16.5 billion

Intel (NASDAQ:INTC) reported third quarter 2026 results in its quarterly filing dated October 29, 2026. Net revenue was $16.5 billion, up $2.9 billion from $13.7 billion a year earlier, or about 21% on a calculated basis.

Intel Products revenue grew 22%, led by the Data Center and AI group, where revenue rose 78% to $7.3 billion on a richer mix of premium products and, to a lesser extent, demand-based pricing actions. Client Computing revenue was $8.1 billion, down 5% because of lower client Volume in a competitive market, partly offset by higher average selling prices.

The company said demand for certain data center products continued to exceed available supply.

Supply constraints and a softer client outlook

Industry-wide shortages of substrates, memory and other critical components limited product availability, particularly for data center processors that depend on substrates for advanced packaging. High memory prices also weighed on price-sensitive client markets.

Management expects the shortages to persist into next year and said client demand trends are expected to worsen in the fourth quarter of 2026 and persist into 2027.

Margins widen and Operating Income climbs to $2.5 billion

Gross profit rose 36% to $7.1 billion, and gross margin improved to 43.0% from 38.2%. Product profit was $1.6 billion higher, and period charges were $328 million lower.

Operating expenses were $4.6 billion, little changed from $4.5 billion, while Research and Development rose 8% to $3.5 billion. Operating income was $2.5 billion, equal to 15.3% of revenue, compared with $683 million. Intel Foundry still posted an operating loss of $1.85 billion, narrower than $2.32 billion a year ago,.

Net income attributable to Intel of $3.3 billion trails last year's $4.1 billion

Net income attributable to Intel was $3.3 billion, or $0.60 per diluted share, compared with $4.1 billion, or $0.90. The prior year quarter included a $5.5 billion pre-tax gain on the sale of 51% of Altera, while the latest quarter included a $1.0 billion net gain from the Fair Value change of the derivative Liability tied to escrowed shares, against a $1.7 billion net loss a year earlier.

For the nine months, revenue rose to $46.2 billion from $39.2 billion, but the company reported a net loss attributable to Intel of $11.4 billion, or $2.22 per share, largely because of a $12.6 billion derivative liability loss and $3.9 billion of Goodwill impairment.

Balance sheet strengthened by a $22.6 billion stock offering

Intel received net proceeds of $22.6 billion from a public common stock offering in the third quarter. Total cash and short-term investments reached $54.0 billion, up from $37.4 billion at December 27, 2025, while total Debt was $50.1 billion. Operating Cash Flow for the nine months was $13.2 billion, versus $5.4 billion a year earlier.

Credit facilities total $15.0 billion as of October 1, 2026. After the quarter, Intel agreed to acquire Classiq Technologies for about $1.9 billion, plus up to $350 million of contingent consideration, with closing expected in the first half of 2027.

Readers tracking the name will likely follow substrate supply, the client demand slowdown flagged for the fourth quarter and the pace of foundry losses.