Intel Shares Plunge on Weak Q4 Forecast Despite 78% Data Center Growth

Oct 29, 2026
Intel shares fell about 20% after hours as its fourth-quarter forecast missed estimates, even though data center and AI revenue jumped 78% to $7.3 billion.

Intel Corporation reported in a press release third quarter 2026 revenue of $16.5 billion, up 21% from a year earlier. GAAP net income fell 18% to $3.3 billion, while GAAP gross margin rose to 43.0% from 38.2%.

Data Center and AI revenue increased 78% to $7.3 billion. Chief financial officer David Zinsner called it the company's strongest data center revenue growth in 15 years. Client Computing and Physical AI revenue declined 5% to $8.1 billion, while Intel Foundry revenue rose 58% to $6.7 billion.

Intel expects fourth quarter revenue of $15.0 billion to $16.0 billion, with GAAP earnings of $0.10 per diluted share. The company expects the PC slowdown to continue through at least the first half of 2027 and plans to expand supply for its Xeon processors.

Intel shares fell about 20% in extended trading after the release, CNBC reported. Analysts polled by LSEG had expected fourth-quarter revenue of $17.1 billion and adjusted earnings of 43 cents a share, against Intel's guidance of $15 billion to $16 billion and 25 cents.

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