Third-quarter profit surged 169%, exceeding expectations: Intel still fell more than 20% after hours

According to Kuai Technology News on October 30, Intel announced its third quarter financial report for 2026. Revenue for the quarter was US$16.51 billion, a year-on-year increase of 21%; net profit was US$3.32 billion, a year-on-year decrease of 18%. Net profit under Non-GAAP standards was US$2.756 billion, a year-on-year increase of 169%, and diluted earnings per share was US$0.52, higher than market expectations of US$0.40. In terms of gross profit margin, the GAAP caliber was 43% and the Non-GAAP caliber was 44.1%, a year-on-year increase of 4.8 and 4.1 percentage points respectively. While performance exceeded expectations, Intel's fourth-quarter guidance disappointed the market. The company expected Q4 revenue of 15 billion to 16 billion US dollars and Non-GAAP earnings per share of only US$0.25, significantly lower than Wall Street's expectations of approximately US$17.07 billion in revenue and US$0.43 per share. Before the financial report was released, Intel's stock price fell 3.6% to close at $92.07 in regular trading, and fell more than 20% after the market closed. In terms of business, the Data Center and Artificial Intelligence Division (DCAI) was the fastest growing segment this quarter, with revenue of US$7.318 billion, a year-on-year increase of 78%, operating profit of US$3.039 billion, and a profit margin of 41.5%. Client Computing and Physics AI Group (CCPG) revenue was US$8.097 billion, down 5% year-on-year, and operating profit was US$2.285 billion, down from US$2.694 billion in the same period last year. PC chip revenue was approximately US$8.1 billion, lower than market expectations of approximately US$8.98 billion. OEM business revenue was US$6.697 billion, a year-on-year increase of 58%, and it still lost US$1.85 billion in a single quarter. Intel also raised its capital expenditure forecast, raising its full-year capital expenditure in 2026 to US$20 billion from the previous US$18 billion, and stated that it will continue to significantly increase investment in 2027. Another factor that puts pressure on fourth-quarter guidance is the Israeli factory accident. Intel's factory in Kiryat Gat, Israel, exploded in October and production was suspended for about two weeks. The factory mainly uses the Intel 10 process technology to produce some data center chips. C