Intel reported revenue of $16.5 billion for the quarter ended 26 September 2026, up 21% on the same quarter a year earlier. The company announced the result on 29 October 2026. By the close on 30 October, its share price had fallen 28.6%, with dividends counted.
Intel designs processors and runs the factories that make most of them. We wrote this guide on 4 November 2026. It covers Intel's third quarter of 2026, its fiscal 2025 annual report, and five years of share returns.
What does Intel do? Intel designs central processing units (CPUs), the main chips in personal computers (PCs) and servers. It sells them to computer makers and cloud companies. Its Intel Foundry division makes most of them in Intel's own factories.
In the third quarter of 2026, revenue rose 21% to $16.5 billion. Data Center and AI revenue rose 78% to $7.3 billion, while revenue from notebook, desktop, and edge-device chips (CCPG) fell 5% to $8.1 billion.
Intel Foundry lost $1.9 billion at the operating level on $6.7 billion of revenue. Only $411 million of that revenue came from outside customers.
A $10,000 stake in Intel on 3 November 2021 was worth $13,051 on 3 November 2026, against $17,358 for the S&P 500, with dividends counted.
What does Intel sell and who buys it?
Intel (ticker INTC) sells CPUs, the chips that run a computer's programs. Its Intel Products business has two segments.
Client Computing and Physical AI Group (CCPG) sells processors for notebooks, desktops, and edge devices. Intel called it the Client Computing Group through the first quarter of 2026. Data Center and AI (DCAI) sells server processors, AI accelerators, and networking products.
Intel sells mainly to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and cloud service providers (CSPs). OEMs are the computer brands, while ODMs build computers to other companies' designs. According to Intel's fiscal 2025 annual report, its three largest customers made up 43% of net revenue.
How does Intel make money?
Intel earns 93% of its revenue from Intel Products. In the third quarter of 2026, CCPG and DCAI together brought in $15.4 billion of the $16.5 billion total.
Source: Intel results release and Form 10-Q (SEC), third quarter of 2026
DCAI revenue rose 78% to $7.3 billion. Intel's quarterly report says average selling prices of its server chips rose 54%, mostly from a richer mix of premium products. Volume rose 10% on demand from hyperscalers, the largest cloud companies.
CCPG revenue fell 5% to $8.1 billion. Client revenue, the notebook and desktop part, fell on a 14% drop in volume, partly offset by a 9% rise in average selling prices.
Intel Foundry runs the factories. Its $6.7 billion of revenue is mostly payment from Intel's own product groups, which Intel removes when it adds up the company's total. Outside customers paid $411 million, or 6.1% of the segment's revenue, primarily under a non-recurring foundry contract.
Our TSMC vs Intel comparison sets Intel Foundry beside a pure chip maker.
What are Intel's key numbers?
Gross margin is revenue less the direct cost of making the product, as a share of revenue. Operating margin also subtracts research, marketing, and restructuring costs. Our income statement guide defines each line. The table uses Generally Accepted Accounting Principles (GAAP).
Reported under GAAP | Q3 2026 (quarter to 26 Sep 2026) | Q3 2025 (quarter to 27 Sep 2025) | Fiscal 2025 (year to 27 Dec 2025) |
|---|---|---|---|
Revenue | $16.5 billion | $13.7 billion | $52.9 billion |
Gross margin | 43.0% | 38.2% | 34.8% |
Operating income | $2.5 billion | $0.7 billion | −$2.2 billion |
Operating margin | 15.3% | 5.0% | −4.2% |
Net income attributable to Intel | $3.3 billion | $4.1 billion | −$267 million |
Research and development, share of revenue | 21.1% | 23.7% | 26.1% |
$ means US dollars. Every figure is as Intel reported it under US Generally Accepted Accounting Principles. Sources: Intel's results release of 29 October 2026, its Form 10-Q for the quarter ended 26 September 2026 and its fiscal 2025 Form 10-K.
Fiscal 2025 revenue of $52.9 billion was 33.1% below fiscal 2021's $79.0 billion.
In the third quarter, net income attributable to Intel fell from $4.1 billion to $3.3 billion while operating income rose. Interest and other income, which sits below the operating line, was $1.1 billion in the third quarter of 2026 and $3.7 billion a year earlier.
Free cash flow here is cash from operations less additions to property, plant and equipment, a non-GAAP measure we compute. Over the nine months to 26 September 2026 it was $3.0 billion, against −$5.7 billion a year earlier. Cash from operations was $13.2 billion, while additions to property, plant and equipment were $10.2 billion.
Where did the third-quarter profit come from?
Chart 2 gives each segment's operating result. Corporate unallocated costs sit outside any segment.
Source: Intel results release and Form 10-Q (SEC), third quarter of 2026
DCAI earned $3.0 billion at a 41.5% operating margin, against $1.0 billion at 23.4% a year earlier. CCPG earned $2.3 billion at 28.2%, against 31.6%.
Intel Foundry lost $1.9 billion, or 27.7% of its revenue, against 54.8% a year earlier. Consolidated operating income was $2.5 billion, a 15.3% margin.
What has Intel announced since the quarter ended?
Intel's 29 October 2026 release gave fourth-quarter guidance of $15.0 billion to $16.0 billion of revenue and a GAAP gross margin of 37.1%, against 43.0% in the third quarter. Its chief financial officer said Intel sees the PC slowdown continuing at least through the first half of 2027.
Intel's quarterly report also describes an accident in mid-October 2026 at its factory in Kiryat Gat, Israel. The accident suspended production for about two weeks. Intel expected it to resume by the end of October.
Intel expects fourth-quarter charges and higher costs through the first half of 2027. It cannot yet estimate the financial impact.
Intel also agreed to buy Classiq Technologies, a quantum software company, for about $1.9 billion. Intel expects the deal to close in the first half of 2027, subject to regulatory approvals.
Intel announces results after the US market closes. We measured the change in its share price from the close on results day to the close of the next session. The 20 announcements run from January 2022 to October 2026, with dates from Intel's filings with the US Securities and Exchange Commission. Dividends are counted.
Source: YX Insights price data (INTC); Intel Form 8-K filings (SEC)
Intel fell after 13 of the 20 announcements and rose after 7. The median move was −6.8%. Six moves were larger than 10% in either direction.
The largest rise was 23.6% on 24 April 2026, while the largest fall was 28.6% on 30 October 2026. SPY (the S&P 500 ETF) moved 3.7% or less on each of those 20 sessions.
Intel's filings name data centre demand, component supply, and client demand. Client demand weakened in the third quarter against the first half of 2026, with Intel citing higher component prices (particularly memory), constrained information technology (IT) budgets, and tighter inventory management.
Intel had 5,310 million shares outstanding on 26 September 2026 against 4,994 million on 27 December 2025, a rise of 6.3%. A public offering on 12 August 2026 issued about 242 million shares for $23.0 billion before costs.
We buy $10,000 of Intel and of SPY at the close on 3 November 2021 and value each at the close on 3 November 2026, after 1,255 trading days. Returns count dividends, before costs and tax.
Source: YX Insights price data (INTC, SPY)
Intel's stake grew to $13,051, or 5.47% a year. The S&P 500 stake grew to $17,358, or 11.66% a year. Intel's stake peaked at $30,379 on 22 June 2026, the highest of the five years. It had lost 57.0% of that value by 3 November 2026.
The worst fall is the largest drop from a previous high, searched over all five years. Intel's was 65.0%, from 11 January 2022 to 8 April 2025, when the stake was worth $3,908. It regained the old high on 21 January 2026, 4.03 years after it was set. The index's worst fall was 24.5%.
The window holds six calendar periods, with 2021 and 2026 part years. Intel finished ahead of the index in four of them.
What does this guide leave out?
Newer results will replace these figures.
Our Multi-model Signals cover INTC. For Intel's rivals, read AMD vs Intel. For where it sits in the industry, read the semiconductor value chain guide.
Intel designs CPUs for PCs and data centres, while its own factories make most of them.
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Common questions about Intel
Is Intel a chip designer or a chip maker?
Intel is both. It designs CPUs through Intel Products, while Intel Foundry manufactures most of them. In the third quarter of 2026, Intel Foundry's revenue was $6.7 billion, of which $411 million came from outside customers. Our TSMC vs Intel comparison covers a pure manufacturer.
How does Intel make money?
Intel makes money by selling processors, mainly to computer makers and cloud companies. CCPG and DCAI together brought in $15.4 billion of its $16.5 billion third-quarter 2026 revenue. DCAI earned a 41.5% operating margin and CCPG 28.2%, while Intel Foundry lost money at the operating level.
Who are Intel's biggest customers?
Intel's annual report does not name them. It labels them Customer A, B, and C, at 19%, 12%, and 12% of fiscal 2025 net revenue, or 43% together. Intel sells mainly to original equipment manufacturers, original design manufacturers, and cloud service providers. By billing location, China accounted for 24.0% of revenue.
Intel's share price fell 28.6% by the close on 30 October 2026, the session after the 29 October announcement, with dividends counted. That was the largest fall after any of 20 results announcements since January 2022. The largest rise, 23.6%, came on 24 April 2026.
Does Intel make chips for other companies?
Only a little so far. Intel Foundry's outside customers paid $411 million in the third quarter of 2026, which is 6.1% of the segment's $6.7 billion of revenue. The rest was Intel's own product groups paying for manufacturing. Intel's annual report says it is seeking customers for Intel 14A, its next manufacturing process.
DISCLAIMER: This article is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.
