Intel Revenue Reaches $16.513 Billion as Data Center Segment Jumps 78%
Key Facts
Intel revenue reached about $16.513 billion in the third quarter of 2026, compared with $13.653 billion in the same period a year earlier, according to its quarterly report filed with the U.S. Securities and Exchange Commission. The increase was driven mainly by growth in its data center and artificial intelligence businesses, as the company struggled to meet demand for some of its products. The company said demand for certain data center products exceeded available supply. Chief Executive Lip-Bu Tan said the quarter’s results reflected improved execution, progress in expanding supply and advances in manufacturing technology. He added that demand for the company’s processors remained strong despite pressure in the PC market.
Revenue in the data center and artificial intelligence segment rose by $3.2 billion from the third quarter of 2025 to about $7.3 billion, according to the report. Server revenue increased by $2.5 billion during the quarter, while average selling prices rose 54% year over year. Intel attributed growth in its products to a larger mix of premium offerings and demand-linked pricing actions. The company said segment revenue rose 78% from the same period a year earlier, driven by higher sales of premium products. By contrast, client computing revenue declined as sales volumes fell amid weak demand and competition.
The company’s results showed an improvement in gross margin under U.S. generally accepted accounting principles, which was 43.0% in the third quarter, compared with 38.2% in the same period a year earlier. But supply constraints limited Intel’s ability to convert demand into sales, affecting substrates, memory and other key components, according to its report. Tan told analysts he was disappointed that the company could not meet strong customer demand during the quarter, citing shortages of manufacturing supplies, pressure on memory and weak PC demand. Reuters also reported that an explosion at the company’s plant in Israel caused a two-week shutdown. Intel expects the incident to result in about $600 million in lost revenue over two quarters.
Reuters said Intel shares fell 23% in extended trading after the results, amid concerns over liquidity needs, a weak PC market and manufacturing bottlenecks. In the October 30 session, the stock fell 28.6%, its worst daily decline since 1974, according to the Associated Press. EL7 data showed the shares closed at $65.76, after closing at $92.07 in the previous session. In the PC business, revenue from its chips fell 5% to $8.10 billion in the third quarter, according to Reuters. The chief financial officer said the PC market slowdown could continue through the first half of the following year, while expressing optimism about the opportunities in the company’s product portfolio.