Intel Reports Q3 2026 Earnings: Data Center Revenue Surges 78%, Marking Strongest Growth in 15 Years
Intel posted $16.5B in Q3 revenue with a 78% jump in its Data Center and AI segment, though it forecasts continued PC market slowdowns through early 2027.
U.S. semiconductor company Intel Corporation reported its third-quarter 2026 financial results on October 29, 2026. The company recorded total revenue of $16.5 billion, representing a 21% increase year-over-year. Earnings per share (EPS) attributable to Intel was $0.60 on a GAAP basis, while non-GAAP EPS stood at $0.52.
The Data Center and AI (DCAI) segment emerged as the primary driver of performance, generating $7.3 billion in revenue, a substantial 78% year-over-year increase. David Zinsner, Intel's CFO, characterized this as the company's "strongest data center revenue growth in 15 years." In contrast, the Client Computing and Physical AI Group (CCPG) saw revenue decline by 5% to $8.1 billion.
CEO Lip-Bu Tan noted that despite near-term headwinds in the PC industry, demand for Intel CPUs remains robust, particularly for the Xeon family, which he described as facing "extraordinary demand." The company's immediate priority is unlocking additional supply to meet these needs.
Looking ahead, Intel forecasted fourth-quarter 2026 revenue between $15.0 billion and $16.0 billion, with GAAP EPS guided at $0.10 and non-GAAP EPS at $0.25. Management explicitly warned that the slowdown in the PC market is expected to continue at least through the first half of 2027.
Additionally, Intel announced the completion of a $23 billion public equity offering to support future growth opportunities while maintaining an investment-grade rating. The release also highlighted a planned multiyear collaboration with Oracle to expand Intel Xeon-based computing on Oracle Cloud Infrastructure.