Intel reported a 21% rise in third-quarter revenue but projected fourth-quarter sales below the analyst estimates CNBC cited, while its finance chief said the PC slowdown would continue through at least the first half of 2027.
CNBC reported that Intel shares fell 20% in extended trading Thursday, Oct. 29, after the results. The outlet cited LSEG estimates of $17.1 billion in fourth-quarter revenue and adjusted earnings per share of 43 cents.
Intel forecast fourth-quarter revenue of $15 billion to $16 billion and non-GAAP diluted earnings per share (EPS) of 25 cents. Chief Financial Officer David Zinsner said the PC slowdown would last through at least the first half of 2027.
For the three months ended Sept. 26, Intel reported revenue of $16.513 billion, up from $13.653 billion a year earlier. GAAP diluted EPS was 60 cents, compared with 90 cents a year earlier; non-GAAP diluted EPS was 52 cents, up from 23 cents.
Results varied across the company’s businesses. Data Center and AI revenue climbed 78% to $7.3 billion, while Client Computing and Physical AI revenue fell 5% to $8.1 billion. Intel Foundry revenue rose 58% to $6.7 billion. In the previous quarter, Data Center and AI revenue rose 59% year over year. Intel also said operating constraints prevented it from meeting demand for server products.
Estimates from Gartner and Counterpoint Research showed global PC shipments declining in the third quarter, though the firms differed on the scale. Gartner’s preliminary estimate was 55.4 million shipments, down 22.4% from a year earlier; Counterpoint estimated 57 million, down 21%.
Gartner cited higher memory and storage costs, scarce components and fewer affordable devices, and said shipments had returned to levels last seen in early 2023. Counterpoint said higher prices made replacement purchases harder for consumers to justify.
Intel CEO Lip-Bu Tan said demand for its CPUs remained robust. Zinsner said Intel would make “disciplined investments” in capacity and working capital to increase supply. Counterpoint forecast a 27% year-over-year decline in global PC shipments in the fourth quarter.