Intel Corporation (INTC) reported third-quarter 2026 revenue of $16.5 billion, up 21% from a year earlier, after $16.1 billion, up 25% year-over-year, in the second quarter.

The semiconductor company said Data Center and AI revenue was $7.3 billion, up 78% from a year earlier, after $6.3 billion, up 59% year-over-year, in the prior quarter. Chief Financial Officer David Zinsner said the company posted its strongest data center revenue growth in 15 years.

Client Computing and Physical AI Group revenue was $8.1 billion, down 5% from a year earlier, after $8.9 billion, up 13% year-over-year, in the second quarter. Chief Executive Lip-Bu Tan said demand for Intel CPUs remains robust despite near-term headwinds across the PC industry. Zinsner said the company sees the PC slowdown continuing at least through the first half of next year.

GAAP earnings per share attributable to Intel was $0.60, down 33% from $0.90 a year earlier. Non-GAAP EPS was $0.52, up 126% from $0.23. Net income attributable to Intel was $3.3 billion. GAAP gross margin was 43.0%, up 4.8 percentage points from 38.2% a year earlier. GAAP operating margin was 15.3%.

Total Intel Products revenue was $15.4 billion, up 22% from a year earlier. Intel Foundry revenue was $6.7 billion, up 58% from a year earlier, after $5.8 billion, up 31% year-over-year, in the second quarter. All Other revenue was $0.7 billion.

Data Center and AI operating income was $3.04 billion, versus $0.96 billion a year earlier. Client Computing and Physical AI Group operating income was $2.29 billion. Intel Foundry posted an operating loss of $1.85 billion, versus a $2.32 billion loss a year earlier.

The company generated $5.1 billion in cash from operations in the third quarter, after $7.0 billion in the second quarter. It completed a $23 billion public equity offering. Cash and cash equivalents were $21.8 billion at September 26, 2026.

Intel announced plans to acquire Classiq, combining its quantum software synthesis platform with Intel’s spin-qubit manufacturing and software expertise. It also announced a multiyear collaboration with Oracle intended to expand Xeon-based computing on Oracle Cloud Infrastructure, including planned OCI X14 offerings powered by Diamond Rapids. In October it released the Intel 14A 0.9 process design kit.

Tan said the company’s immediate priority is to unlock additional supply to meet demand for its Xeon family. Zinsner said Intel will continue making disciplined investments in capacity and working capital to increase supply.

Intel is forecasting fourth-quarter 2026 revenue of $15.0 billion to $16.0 billion, versus a prior third-quarter guide of $15.8 billion to $16.8 billion. It is forecasting fourth-quarter GAAP EPS of $0.10 and non-GAAP EPS of $0.25, versus prior third-quarter expectations of $0.31 GAAP and $0.38 non-GAAP. Fourth-quarter GAAP gross margin is guided at 37.1% and non-GAAP at 38.0%, versus third-quarter actual GAAP gross margin of 43.0% and non-GAAP of 44.1%. The gross margin and EPS outlooks are based on the midpoint of the revenue range.