Santa Clara-based tech giant Intel fell in premarket trading Friday, despite a strong Q3 earnings beat.
Analysts suggest the share slump follows Intel’s weaker-than-expected guidance, citing ongoing softness in the PC market and investor nervousness about massive AI spending by tech giants and whether it will pay off.
Intel’s Q3 Highlights:
- Third-quarter revenue was $16.5 billion, up 21% year-over-year (YoY).
- Third-quarter earnings per share (EPS) attributable to Intel was $0.60; non-GAAP EPS attributable to Intel was $0.52.
- Forecasting fourth-quarter 2026 revenue of $15.0 billion to $16.0 billion; forecasting fourth-quarter EPS attributable to Intel of $0.10 and non-GAAP EPS attributable to Intel of $0.25.
In the company’s earnings statement, Lip-Bu Tan, Intel CEO, told investors: “Our Q3 results demonstrate improving execution, meaningful progress expanding supply, and continued advancement of our process technology. 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. Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family, while strengthening our product portfolio and roadmap. We are moving with urgency and focus to capitalize on these opportunities to deliver sustainable growth and long-term shareholder value.”
“We delivered another solid quarter. Revenue, gross margin and earnings per share exceeded guidance, including our strongest data center revenue growth in 15 years,” said David Zinsner, Intel CFO. “Looking ahead, we see the PC slowdown continuing at least through the first half of next year, but we remain optimistic about the opportunities across our broader portfolio, and we will continue making disciplined investments in capacity and working capital to increase supply and support future growth.”
Nasdaq-100 futures were down 2% in early trading Friday.
By CEO NA Editorial Staff
