Intel stock gains server momentum as weak Q4 outlook weighs

Intel reported a strong third quarter on October 29, 2026, but its weaker fourth-quarter outlook has kept pressure on the shares. The company generated revenue of 16.5 billion US dollars, up 21 percent from a year earlier, while adjusted diluted earnings per share reached 0.52 US dollars, compared with 0.23 US dollars in the prior-year quarter. Intel stock traded at 53.06 euros on Lang & Schwarz at 1:32 p.m. CET on Wednesday, November 4, 2026, 4.02 percent below the Xetra close of Tuesday, November 3, at 54.24 euros.

Intel's third-quarter results release showed a sharp split between the company's main demand drivers. Revenue from Data Center and AI rose 78 percent year over year to 7.3 billion US dollars. Client Computing and Physical AI revenue fell 5 percent to 8.1 billion US dollars, reflecting weaker personal-computer demand.

AI demand offsets a weaker PC market

Intel said the quarter included its strongest data-center revenue growth in 15 years. Chief Executive Lip-Bu Tan said demand for Intel CPUs remained robust and identified additional supply for the Xeon family as an immediate priority. Chief Financial Officer David Zinsner said the company would continue disciplined investment in capacity and working capital while expecting the PC slowdown to continue at least through the first half of 2027.

Intel Foundry revenue increased 58 percent year over year to 6.7 billion US dollars. Total Intel Products revenue reached 15.4 billion US dollars, up 22 percent, although the growth mix remains concentrated in server and artificial-intelligence demand. Intel also generated 5.1 billion US dollars in operating cash flow during the quarter.

Fourth-quarter guidance resets expectations

For the fourth quarter, Intel forecast revenue between 15.0 billion and 16.0 billion US dollars. The company expects a GAAP gross margin of 37.1 percent and GAAP diluted earnings of 0.10 US dollars per share. On a non-GAAP basis, the outlook calls for a 38.0 percent gross margin and adjusted diluted earnings of 0.25 US dollars per share.

The guidance places greater importance on whether server demand can compensate for the near-term PC contraction. Intel's improved third-quarter profitability and data-center momentum support the longer-term case, but the lower margin outlook and management's warning on PC demand leave the next quarter exposed to product mix, supply constraints and customer inventory decisions.

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