Intel reported stronger third-quarter revenue and its fastest data-center growth in 15 years, even as its PC business weakened. Revenue increased 21% to $16.5 billion, while Data Center and AI sales rose 78%.
Intel Revenue and Margins Beat Prior-Year Levels
Intel’s October 29 results covered the quarter ended September 26. GAAP gross margin widened to 43.0% from 38.2%, while operating margin increased to 15.3% from 5.0%.
Diluted earnings per share attributable to Intel were $0.60, compared with $0.90 a year earlier. Non-GAAP EPS increased to $0.52 from $0.23, and the company generated $5.1 billion in operating cash flow.
$13.7B
$16.5B
38.2%
43.0%
5.0%
15.3%
Data Center Sales Offset PC Weakness
Data Center and AI revenue reached $7.3 billion, up 78%. Intel said demand for its Xeon processors remained unusually strong, while Client Computing and Physical AI revenue declined 5% to $8.1 billion.
Intel Foundry revenue increased 58% to $6.7 billion, although that figure includes intersegment transactions. Total Intel Products revenue rose 22% to $15.4 billion.
Intel Guides for a Slower Fourth Quarter
Intel expects fourth-quarter revenue between $15 billion and $16 billion. It projected GAAP EPS of $0.10 and non-GAAP EPS of $0.25 as management anticipates the PC slowdown continuing through at least the first half of 2027.
The results add another data point to the AI infrastructure cycle after Amazon’s AWS growth, Microsoft’s cloud results and AI storage demand. Intel’s quarter showed expanding data-center demand, but its outlook still reflects pressure in consumer computing.
Elsy kanana
Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.
