Intel shares sink 28% after chipmaker guides fourth-quarter sales lower

Intel shares were trading at $66.10 at 11:13 a.m. New York time (16:13 CET) on Friday 30 October 2026, down $25.97, or 28.2%, from Thursday's close, according to Google Finance; the session was still open and the price still moving. After the market closed on 29 October, the chipmaker forecast fourth-quarter 2026 revenue of $15.0bn-$16.0bn, below the $16.5bn it reported for the third quarter, and non-GAAP earnings per share of $0.25, or $0.10 on a GAAP basis, according to its results release. CNBC linked the shares' slide in extended trading on 29 October to the weak forecast.

Analysts polled by LSEG had expected fourth-quarter revenue of $17.1bn and adjusted EPS of $0.43, CNBC reported. For the third quarter, the same poll had pointed to adjusted EPS of $0.40 and revenue of $16.5bn. Intel delivered revenue of $16.51bn, in line and up 21% from $13.7bn a year earlier, and non-GAAP EPS of $0.52, up from $0.23 a year earlier. GAAP EPS fell to $0.60 from $0.90. The company expects its non-GAAP gross margin to drop to 38.0% in the fourth quarter (GAAP 37.1%), from 44.1% (GAAP 43.0%) in the third; both margin and EPS forecasts assume the midpoint of the revenue range.

Chief financial officer David Zinsner said revenue, gross margin and EPS had all beaten the company's own guidance. He added, in the release: "Looking ahead, we see the PC slowdown continuing at least through the first half of next year ..." That runs into 2027. Chief executive Lip-Bu Tan said: "Our immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family, while strengthening our product portfolio and roadmap."

Revenue at the Data Center and AI segment rose 78% year on year to $7.3bn, while the Client Computing and Physical AI Group, Intel's PC-chip business, shrank 5% to $8.1bn. Intel Foundry's revenue, which includes sales to Intel's own product units, grew 58% to $6.7bn, but the unit's operating loss was $1.85bn. Cash from operations was $5.1bn in the quarter, and on 26 September Intel held $21.8bn in cash and cash equivalents and $32.2bn in short-term investments.

The outlook also reflects an explosion earlier this month at Intel's factory in Israel that killed two workers, according to CNBC. Zinsner told analysts it would cost about $600m in revenue over two quarters, CNBC reported, while Tan called it an "unfortunate and tragic accident" that led to an "extended shutdown". CNBC said the stock had gained about 150% this year before the report.

Wider indices were also lower on Friday. The Nasdaq Composite was down 2.27% at 25,589.77 at 11:16 a.m. New York time (16:16 CET), according to Google Finance, and the PHLX Semiconductor index, of which Intel is a member, was down 6.86% at 10,728.54 at 11:12 a.m. (16:12 CET), according to Google Finance. Both are intraday levels, not closes.