Intel signals slower growth as PC market remains under pressure

Intel has forecasted quarterly revenue and profit below estimates, attributing the slowdown in the PC market to elevated memory costs that are expected to persist into next year. Chief Financial Officer David Zinsner stated that the PC slowdown would continue at least through the first half of next year. Intel plans to make disciplined investments in capacity and working capital to increase supply and support future growth.

The company's guidance for the fourth quarter is between $15 billion and $16 billion, below the average analyst estimate of $17.07 billion. Adjusted profit for the quarter is expected to be 25 cents per share, trailing the estimate of 43 cents. Intel also estimates that the October explosion at its Kiryat Gat, Israel factory impacted its fourth-quarter revenue and gross margins.

The company is assessing which wafers from the affected fab are salvageable and expects a similar revenue impact in the first quarter. Intel has raised its 2026 capital spending forecast to $20 billion and increased 2027 spending significantly to expand manufacturing capacity. CEO Lip-Bu Tan is leading the company's turnaround, focusing on contract manufacturing, or foundry, business as a key part of his revival strategy.