Earnings call transcript: Intel beats Q3 2026 estimates, but stock sinks

Intel reported better-than-expected Q3 2026 earnings but saw its stock plunge after hours. The company posted adjusted earnings per share of $0.52, exceeding forecasts, as revenue of $16.5 billion slightly beat estimates. The data center and AI businesses drove the growth, with revenue up 17% and 80% year-over-year, respectively.

However, Intel's PC business struggled due to memory shortages and weaker demand, leading to a 9% sequential decline in client computing revenue. The company's foundry business also faced challenges, with a $300 million hit from a factory shutdown in Israel. Despite the mixed results, Intel's data center and AI segment remained a bright spot, with AI PCs contributing to growth.

Management attributed the company's turnaround progress to significant operational restructuring and a refined product roadmap. Intel's market capitalization stood at $483.68 billion, with a year-to-date return of 149.54%. However, the stock dropped sharply by 20.87% after hours, reflecting investors' concerns about the weaker outlook for the upcoming quarters.