Intel Beats Estimates With $0.52 Adjusted EPS as Data Center Revenue Jumps 78%

Intel (Nasdaq: INTC) reported third-quarter revenue of $16.5 billion, up 21% from a year earlier and slightly above the $16.49 billion analysts expected. Adjusted EPS was $0.52, against the $0.40 consensus estimate, in an 8-K filed Thursday, Oct. 29, 2026. On a GAAP basis, diluted EPS was $0.60, down 33% from $0.90 a year earlier.

Data center and foundry lead growth

Data Center and AI revenue rose 78% to $7.3 billion, and Intel Foundry revenue rose 58% to $6.7 billion. Client Computing and Physical AI Group revenue fell 5% to $8.1 billion.

Non-GAAP operating income was $3.2 billion, compared with $1.5 billion a year earlier. Non-GAAP gross margin was 44.1%, up from 40.0%. GAAP net income attributable to Intel was $3.3 billion, down 18% from a year earlier.

Fourth-quarter outlook falls short of estimates

Intel forecast fourth-quarter revenue of $15.0 billion to $16.0 billion, below the $17.06 billion analysts expected for the quarter. The company guided to non-GAAP EPS of $0.25, compared with the $0.44 consensus estimate, and GAAP EPS of $0.10. It expects a non-GAAP gross margin of 38.0%.

CFO David Zinsner said the company sees the PC slowdown continuing at least through the first half of next year, while remaining optimistic about its broader portfolio.

Supply and capital

CEO Lip-Bu Tan said the immediate priority is unlocking additional supply to meet demand for Xeon processors. Intel generated $5.1 billion in cash from operations in the quarter. The release said Intel completed a $23 billion public equity offering and announced plans to acquire Classiq, a quantum software company.