01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Intel Corporation's Form 10-Q for the quarter ended September 26, 2026 shows a sharp rebound in third-quarter operating performance.
Net revenue was $16.5 billiona, up $2.9 billion from the third quarter of 2025, with gross profit of $7.1 billion (43.0% of revenue) and operating income of $2.5 billion, compared with $683 million a year earlier. Intel Products revenue rose to $15.4 billion, driven by Data Center and AI (DCAI) revenue, which increased $3.2 billion on higher server revenue and average selling prices. Client Computing and Physical AI Group (CCPG) revenue declined, with client volume down 14% on lower demand.
Management expects client demand trends to worsen in the fourth quarter of 2026 and persist in 2027, while strong data center demand is expected to continue. For the nine months, Intel reported a net loss attributable to Intel of $11.4 billionb, compared with net income of $324 million a year earlier. The loss reflects a $12.6 billion mark-to-market loss on Escrowed Shares tied to the U.S. government agreement, and $3.9 billion of non-cash goodwill impairment charges, substantially all related to the Mobileye reporting unit.
Intel strengthened its balance sheet during the period, completing a public offering of common stock with net proceeds of $22.6 billionc, reacquiring Apollo's 49% interest in Ireland SCIP for $14.2 billion, and ending the quarter with $54.0 billion in total cash and short-term investments against $50.1 billion of total debt. The filing also flags near-term risks.
A mid-October 2026 accident at the Kiryat Gat, Israel manufacturing facility halted operations for about two weeks, and Intel expects related charges and reduced production to affect fourth-quarter 2026 results and the first half of 2027. Industry-wide shortages of substrates and memory are expected to persist into 2027, and the Iran conflict poses ongoing risks to Israel-based operations.
02—Key points
Key Highlights
- Third-quarter net revenue was $16.5 billion, up $2.9 billion from the prior-year quarter, with operating income of $2.5 billion versus $683 million a year earlier.
- DCAI revenue increased $3.2 billion in the quarter, driven by server revenue up $2.5 billion on server ASP increases of 54%, while CCPG revenue decreased $438 million on client volume down 14%.
- Nine-month net loss attributable to Intel was $11.4 billion, including a $12.6 billion loss on the mark-to-market of Escrowed Shares and $3.9 billion of goodwill impairment, substantially all related to Mobileye.
- Intel completed a common stock offering of approximately 242 million shares, with net proceeds of $22.6 billion, to be used for general corporate purposes including capital expenditures.
- Cash and short-term investments were $54.0 billion at quarter-end, against total debt of $50.1 billion; the company repurchased Apollo's 49% interest in Ireland SCIP for $14.2 billion in the second quarter.
- Capital expenditure commitments totaled $19.6 billion at September 26, 2026, and the company agreed to classiq Technologies Ltd. acquisition for approximately $1.9 billion, expected to close in the first half of 2027.
- An accident at the Kiryat Gat, Israel facility in mid-October 2026 halted manufacturing for about two weeks, with charges and reduced production expected to affect fourth-quarter 2026 and the first half of 2027 results.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Intel kept $0.20.
- Revenue$16.51B100.0%
- Cost of revenue−$9.42B57.0%
- Gross profit$7.10B43.0%
- Operating costs−$4.57B27.7%
- Operating income$2.52B15.3%
- Interest, other & tax$798.0M4.8%
- Net income$3.32B20.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $16.51B$13.65B | +20.9% |
| Cost of Revenue | $9.42B$8.44B | +11.6% |
| Gross Profit | $7.10B$5.22B | +36.0% |
| R&D Expenses | $3.49B$3.23B | +8.0% |
| SG&A Expenses | $1.03B$1.13B | −8.8% |
| Operating Expenses | $4.57B$12.97B | −64.7% |
| Operating Income | $2.52B$683.00M | +269.3% |
| Net Income | $3.32B$4.06B | −18.3% |
| EPS (Basic) | $0.63$0.90 | −30.0% |
| EPS (Diluted) | $0.60$0.90 | −33.3% |
| Shares Outstanding (Basic) | 5.24B4.51B | +16.2% |
| Shares Outstanding (Diluted) | 5.31B4.53B | +17.1% |
05—Questions
Frequently Asked Questions
What drove the improvement in third-quarter operating income?
Operating income was $2.5 billion in the third quarter of 2026 compared with $683 million in the third quarter of 2025. Gross profit rose by $1.9 billion, driven by $1.6 billion of higher product profit primarily from higher revenue, and by $328 million of lower period charges tied to the Intel 3 and Intel 4 process nodes. Restructuring and other charges fell to $54 million from $175 million.
Why was the nine-month result a net loss?
Intel reported a net loss attributable to Intel of $11.4 billion for the nine months ended September 26, 2026. The main drivers were a $12.6 billion loss from the mark-to-market of Escrowed Shares, as the stock price increased, and $3.9 billion of non-cash goodwill impairment charges in the first quarter, substantially all related to the Mobileye reporting unit. Operating income for the nine months was $1.2 billion.
How is Intel funding its investments and what is its liquidity position?
Intel issued common stock in August 2026 for net proceeds of $22.6 billion and issued $6.5 billion of senior notes in the second quarter. It also amended its credit facilities, bringing total borrowing capacity to $15.0 billion after an October 1, 2026 increase. At quarter-end, cash and short-term investments totaled $54.0 billion and total debt was $50.1 billion. Management believes it has sufficient funding for the next 12 months and beyond.
What near-term risks does the filing highlight?
The filing highlights the Kiryat Gat, Israel accident, which halted manufacturing for about two weeks and is expected to produce charges and cost pressure in Q4 2026 and the first half of 2027. Industry shortages of substrates and memory are expected to persist into 2027, limiting supply in some areas and weighing on client demand. Client demand is expected to worsen in Q4 2026. The company also cites the ongoing Iran conflict as a risk to its Israel fabrication and product development operations.
What legal exposures are disclosed?
Intel has accrued $1.0 billion related to the VLSI litigation and $312 million related to an EC-imposed fine, including revaluation effects and accrued interest. For the VLSI matter, Intel states it cannot reasonably estimate losses above recorded amounts. Other matters, including the EireOg patent cases and securities litigation over segment reporting, are described as having uncertain outcomes for which management cannot make a reasonable loss estimate.
06—Continue