Intel says data center and AI revenue rose 78% to $7.3 billion and guides Q4 revenue to $15 billion to $16 billion, below the $17.1 billion analyst estimate

Intel said its data center and AI revenue rose 78% to $7.3 billion in the third quarter, and forecast fourth-quarter revenue of $15 billion to $16 billion, according to its earnings release published at 4:01 PM ET Thursday. CNBC reported that analysts polled by LSEG expected $17.1 billion.

Intel’s total third-quarter revenue was $16.5 billion, up 21%, the release said. Adjusted earnings per share were 52 cents, which CNBC reported compared with 40 cents expected, and revenue was in line with the $16.5 billion estimate. Intel said Foundry revenue rose 58% to $6.7 billion. Revenue in its client computing and physical AI group fell 5% to $8.1 billion; Reuters reported that this missed estimates of $8.98 billion.

Chief financial officer David Zinsner said in the release that revenue, gross margin and earnings per share exceeded guidance, “including our strongest data center revenue growth in 15 years.” CNBC reported that Intel has benefited from agentic AI applications, which it said lean on CPUs to orchestrate tasks. On the second-quarter call, CEO Lip-Bu Tan said, as CRN quoted him, that as AI expands to agentic and multi-agent systems, “general-purpose server CPU density continues to increase.” CNBC did not say how much of the segment’s growth came from agentic AI.

For the fourth quarter, Intel guided adjusted earnings per share of 25 cents, against LSEG’s 43 cents, CNBC reported. Zinsner said in the release: “We see the PC slowdown continuing at least through the first half of next year.” CNBC reported that global PC shipments fell 4% in the second quarter, citing Counterpoint Research, as memory and component costs rose.

Zinsner told Reuters that an October explosion at Intel’s Kiryat Gat fab in Israel cut the fourth-quarter revenue outlook by roughly $300 million and gross margin by about 200 basis points. He said the fab did not operate for two weeks, that Intel expects a similar revenue effect in the first quarter, and that it is still assessing which wafers are usable. Ynetnews reported that the explosion killed two Intel employees. Reuters said the fab largely produces data center chips and that production was due to begin ramping by the end of this week.

Reuters noted that Intel had raised its 2026 capital spending forecast to $20 billion from $18 billion in July and said 2027 spending would increase significantly.

Reuters reported that Intel shares fell more than 20% in extended trading Thursday, and CNBC’s headline said the stock plunged 21%.

Intel says data center and AI revenue rose 78% to $7.3 billion and guides Q4 revenue to $15 billion to $16 billion, below the $17.1 billion analyst estimate

Sources