Intel (INTC) returned to a net profit of $3.32B in the third quarter ended Sept. 26, 2026, and its operating margin reached 15.3%, the highest of the last five quarters. Earnings per share of 0.52, the figure compared with the analyst estimate of 0.4066, beat that estimate, but revenue of $16.51B was slightly below the analyst estimate of $16.56B. Figures are current as of the Nov. 6, 2026 quote and cover the quarter reported on Oct. 29, 2026.
Key facts
- Oct. 29, 2026 report: earnings per share of 0.52 versus an analyst estimate of 0.4066, a beat of 27.9%. Revenue of $16.51B versus an analyst estimate of $16.56B, a miss of 0.3%.
- Q3 FY2026 (ended Sept. 26, 2026): revenue was 20.9% higher than the year-ago quarter. Operating income was $2.52B, against $683.0M a year earlier.
- Net income: $3.32B in Q3 FY2026, 18.3% lower than the $4.06B in the year-ago quarter. Diluted EPS was 0.6 versus 0.9 a year earlier.
- Share price: 56.28 USD on Nov. 6, 2026, up 7.71% on the day. The 52-week range is 32.89-142.35 USD.
- Balance sheet (Sept. 26, 2026): cash and short-term investments of $54.01B against total debt of $50.13B.
| Metric | Q3 FY2026 | Year-ago or estimate |
|---|---|---|
| Revenue | $16.51B | $13.65B (Q3 FY2025); analyst estimate $16.56B |
| Gross margin | 43.0% | 38.2% (Q3 FY2025) |
| Operating margin | 15.3% | 5.0% (Q3 FY2025) |
| Net income | $3.32B | $4.06B (Q3 FY2025) |
| Operating cash flow | $5.08B | $2.55B (Q3 FY2025) |
What happened
Intel's results had two layers: an earnings beat on a per-share basis, and a quarter that was slightly light on sales. Revenue rose from $13.65B in the year-ago quarter to $16.51B. The reported figure was a hair below the analyst estimate of $16.56B, so the beat came from profitability, not sales.
The profitability story is clearest over the last five quarters:
| Quarter (ended) | Revenue | Gross margin | Operating margin |
|---|---|---|---|
| Q3 FY2025 (Sept. 27, 2025) | $13.65B | 38.2% | 5.0% |
| Q4 FY2025 (Dec. 27, 2025) | $13.67B | 36.1% | 4.0% |
| Q1 FY2026 (Mar. 28, 2026) | $13.58B | 39.4% | a loss |
| Q2 FY2026 (June 27, 2026) | $16.13B | 41.5% | 12.3% |
| Q3 FY2026 (Sept. 26, 2026) | $16.51B | 43.0% | 15.3% |
Gross margin is the share of sales left after the direct cost of making the product. Operating margin is the share left after running costs such as research and sales. Gross margin rose in each of the last three quarters, and operating margin rose in the last two. Revenue stepped up in Q2 FY2026 and stayed at that higher level in Q3.
Net income tells a rougher story. Intel posted a net loss of $3.73B in Q1 FY2026 and a much larger net loss of $11.03B in Q2 FY2026, then a profit of $3.32B in Q3. Net income was still lower than the $4.06B of a year earlier. Operating income is the cleaner read on the core business, and it rose sharply from a year ago. Our data does not break out which one-time items moved net income in each quarter, so we cannot say how much of the swing came from non-operating items.
By segment, Data Center Group revenue was $7.32B in Q3 FY2026, up from $4.12B a year earlier. Intel Foundry Services, the unit that makes chips, also had higher revenue than a year earlier. Our data for the latest quarter does not include a Client Computing Group line, so we cannot compare PC chip sales with the year-ago $8.54B. Intersegment eliminations were +$6.29B in the latest quarter versus -$4.23B a year ago, and foundry revenue is largely intersegment, so the segment breakdown is incomplete and should be read with caution.
No company release or call transcript was available for this article, so we cannot quote management on the drivers. The segment data suggests data center and foundry may be where growth showed up, but the gaps above limit that read.
Why it matters for investors
Cash flow lags profit. Operating cash flow was $5.08B in Q3 FY2026, up from $2.55B a year earlier. But capital spending was $4.02B, so free cash flow (cash left after investment in plants and equipment) was positive but small. In Q2 FY2026 free cash flow was $4.45B. In Q1 FY2026 it was negative at $2.54B. Intel is spending heavily to build capacity, and that spending takes most of the cash it generates. Intel reported no buybacks and no dividends in Q3 FY2026, and the trailing dividend yield is 0.0%. FMP's Q2 FY2026 cash flow shows dividends of $14.34B and buybacks of $617.0M. The dividend line conflicts with the 0.0% trailing yield, so it may be a data anomaly; we could not verify it without a filing or release.
The balance sheet is a cushion. Cash and short-term investments of $54.01B compare with total debt of $50.13B. FMP reports net debt of $28.29B, a figure we could not reconcile with those two numbers alone. Shareholders' equity is $114.91B and debt to equity is 0.44. Financial strength scores are middling: a Piotroski score of 5 on a 0-9 scale and an Altman Z of 2.44.
Valuation is hard to read. Trailing 12-month net margin is negative at 20.1%, so the trailing P/E of -23.65 has no useful meaning. Other trailing measures are high: price/sales of 4.99, EV/EBITDA of 97.39, and price/free cash flow of 79.39. Peers on the same trailing basis:
| Company | P/E | Net margin |
|---|---|---|
| AMD | 96.36 | 16.8% |
| ARM | 200.71 | 17.1% |
| Marvell (MRVL) | 46.31 | 27.9% |
| Micron (MU) | 9.16 | 63.8% |
Every one of these peers has a positive net margin, while Intel's trailing figure is negative. That gap reflects the large losses in the first half of fiscal 2026.
Analysts are split. Of 87 ratings, 32 are buy, 49 are hold and 6 are sell, for a consensus of Hold. The consensus price target averages 113.07 USD (median 107.50 USD), with a range from a low of 70.00 USD to a high of 200.00 USD. All of that range sits above the Nov. 6, 2026 price of 56.28 USD. Another model, the FMP discounted cash flow estimate, gives a value of 2.39 USD per share, far below the market price. The wide gap between those two views shows how much the outcome depends on assumptions about future profits. On Oct. 30, 2026, the day after the report, Wells Fargo, Rosenblatt, DA Davidson, Truist, RBC Capital and StoneX all kept their existing ratings.
Our MoonshotScore is Weak. Stock Expert AI's MoonshotScore V2 for Intel is 44.1, rated Weak. Pillars, relative to the sector: growth 30, momentum 42, quality 41, safety 16 and valuation 24. Safety is the weakest pillar, followed by valuation and growth. No pillar scores strongly.
Insiders have bought. Among the 30 most recent insider filings, those dated in the last 90 days show 2 open-market purchases and 0 sales. Older filings may be missing, so this is a partial picture.
What could go wrong
- Heavy spending: capital spending took most of the operating cash flow in Q3 FY2026. If sales growth slows while spending continues, free cash flow could stay thin or turn negative, as it did in Q1 FY2026.
- Uneven profits: two very large net losses came in the first half of fiscal 2026. A quarter of profit does not yet make a trend.
- Slight revenue miss: sales came in below the analyst estimate, and the next quarter's analyst estimate for revenue of $15.65B is below the latest quarter's result.
- Valuation: the stock traded at 56.28 USD after a 7.71% move on Nov. 6, 2026, and trailing valuation multiples are high compared with current cash generation.
What to watch next
- Next earnings date: Jan. 28, 2027, with an analyst EPS estimate of 0.26 and a revenue estimate of $15.65B.
- Margins: whether gross margin holds near the Q3 FY2026 level of 43.0% and operating margin stays above the 15.3% reached.
- Free cash flow: whether operating cash flow grows faster than capital spending.
- Capital returns: whether Intel restarts buybacks or dividends after none in Q3 FY2026, and whether the Q2 FY2026 dividend line is confirmed in a filing.
- Foundry and data center: how these segments perform once the segment breakdown is complete and intersegment effects are clearer.
- Far-dated estimates: analysts' estimates for the period ending Mar. 26, 2030 are revenue of $34.20B and EPS of 1.99 across 18 analysts. These are distant and uncertain.
Frequently asked questions
Q: Did Intel beat earnings estimates in the third quarter of 2026?
Partly. For the quarter ended Sept. 26, 2026, Intel reported earnings per share of 0.52 versus an analyst estimate of 0.4066. Revenue of $16.51B was 0.3% below the analyst estimate of $16.56B, so the beat came from profit, not sales.Q: Is Intel profitable again in 2026?
In the third quarter ended Sept. 26, 2026, Intel reported net income of $3.32B and operating income of $2.52B. That followed net losses of $3.73B in Q1 FY2026 and $11.03B in Q2 FY2026. Trailing 12-month net margin is still negative at 20.1%, so the full-year picture is not yet profitable.Q: What do analysts think of Intel stock after its Q3 2026 results?
Analyst consensus is Hold, with 32 buy, 49 hold and 6 sell ratings among 87. The consensus price target averages 113.07 USD, with a range of 70.00 USD to 200.00 USD, against a share price of 56.28 USD on Nov. 6, 2026. This is a report of analyst opinion, not advice from Stock Expert AI.What our data could not verify: we had no company release or call transcript, so management's stated reasons for the margin gains and the one-time items behind net income are not confirmed. The Q2 FY2026 dividend and buyback figures and the net debt figure could not be checked against a filing. Third-party opinion pieces were not used for any figure.
Sources: Stock Expert AI data (MoonshotScore V2, financial strength scores); Financial Modeling Prep (FMP) for financial statements, quotes, analyst estimates, ratings and price targets, peer data and insider filings.
This is educational content, not investment advice. Past performance does not guarantee future results.