IT News from October 30th: Intel today released its report for the third quarter of fiscal year 2026 (December 28, 2025, to December 26, 2026) (June 28, 2026, to September 26, 2026):
- Total operating revenue: $16.513 billion (Note from IT: The current exchange rate is approximately 110.2555 billion RMB), a year-on-year increase of 21%.
- Gross profit: $7.096 billion (equivalent to approximately 47.379 billion yuan at current exchange rates)
- Gross profit margin: 43%
- Net profit attributable to the parent company: $3.32 billion (approximately 22.167 billion yuan at current exchange rates), a year-on-year decrease of 18%
- Operating cash flow: $5.082 billion (equivalent to approximately 33.932 billion RMB at current exchange rates)
- Basic earnings per share: $0.63 (current exchange rate is approximately 4.21 RMB)
- Diluted earnings per share: $0.6 (approximately 4.01 RMB at current exchange rates), a year-on-year decrease of 33%
- Debt-to-asset ratio: 42.44%
IT Home News: This quarter, Intel's revenue Non-GAAP diluted EPS exceeded the general expectations of Wall Street analysts, but the fourth-quarter performance guidance was significantly lower than market expectations.
Intel (Intel, NASDAQ : INTC) is a globally leading semiconductor design and manufacturing company, with its business covering client computing, data centers and AI, wafer foundry, among other sectors. It provides core processors and advanced manufacturing capabilities for global PC, servers, and AI computing power.
In terms of key performance highlights for this quarter, Intel stated that its revenue for the third fiscal quarter of 2026 was $16.513 billion, a year-on-year increase of 21%, in line with market expectations; among this, revenue from data centers and AI increased by 78% year-on-year, marking the strongest growth rate for data center revenue in 15 years. Revenue from its wafer foundry business also increased by 58% year-on-year, while client computing business saw a 5% year-on-year decline due to short-term headwinds in the PC industry.
In terms of profitability, GAAP has a gross margin of 43%, an increase of 4.8 percentage points year-on-year; GAAP reported a net profit attributable to shareholders of $3.32 billion, a decrease of 18% year-on-year; GAAP has a diluted earnings per share of $0.6, a decrease of 33% year-on-year; Non-GAAP has a diluted earnings per share of $0.52, which exceeded market expectations.
In terms of cash flow and capital management, operating activities generated $5.082 billion in cash during the quarter; during the same period, a public equity financing of $23 billion was completed to support long-term growth and maintain an investment-grade credit rating.
In terms of the outlook for next quarter's performance, the company expects revenue for the fourth fiscal quarter of fiscal year 2026 to range between $15 billion and $16 billion, with a GAAP diluted earnings per share of $0.1, and a Non-GAAP diluted earnings per share of $0.25; management anticipates that the PC slowdown in the industry will continue at least until the first half of next year, while they will continue to support long-term growth through disciplined investments in capacity and working capital.
