Intel’s server growth contrasts with supply disruptions and a heavy investment outlook

Intel ($INTC) reported third-quarter 2026 revenue of $16.5 billion, up 21% from a year earlier. Data Center and AI revenue increased 78% to $7.3 billion, while Client Computing and Physical AI revenue fell 5% to $8.1 billion. GAAP earnings were $0.60 per diluted share, compared with $0.90 a year earlier; adjusted earnings increased to $0.52 from $0.23.

For fourth-quarter 2026, Intel forecasts revenue of $15–16 billion and adjusted EPS of $0.25. PC weakness is expected through at least the first half of 2027. Its CFO told Reuters that an Israeli factory explosion would reduce revenue by roughly $600 million across two quarters. Separately, the earnings-call transcript describes 2027 as an investment year unlikely to generate positive free cash flow. That spending outlook and constrained manufacturing capacity qualify the strong server growth.

Sources:

• intc.com
• nasdaq.com
• stockanalysis.com
• Reuters