Key Points
Intel earnings drew fresh investor attention after the company posted a third-quarter revenue of $13.7 billion, positive GAAP EPS of $0.90 and a sharp margin rebound year over year. Management coupled those results with a Q4 revenue outlook of $12.8 billion to $13.8 billion and non-GAAP EPS guidance of $0.08, excluding Altera after its deconsolidation. The quarter also featured headline capital moves: a new U.S. government funding agreement, plus equity investments from NVIDIA and SoftBank alongside expanded product and manufacturing milestones on Intel 18A.
Intel earnings arrived with a clear message from the top. CEO Lip‑Bu Tan said AI demand is accelerating opportunities across x86 platforms, purpose-built ASICs and accelerators, and foundry services. CFO David Zinsner emphasized balance sheet actions and noted that current demand is outpacing supply, a trend he expects to persist into 2026.
Below, a closer look at the results, business drivers and what to watch next.
Intel earnings Q3 2025: the headline numbers
Intel earnings showed steady top-line growth with a striking improvement in profitability metrics versus last year’s difficult baseline.
Key figures
- Revenue: $13.7B, up 3% year over year
- GAAP gross margin: 38.2% vs. 15.0% a year ago (up 23.2 pts)
- Non-GAAP gross margin: 40.0% vs. 18.0% a year ago (up 22 pts)
- GAAP operating margin: 5.0% vs. (68.2)% a year ago
- Non-GAAP operating margin: 11.2% vs. (17.8)% a year ago
- GAAP EPS: $0.90 vs. $(3.88) a year ago
- Non-GAAP EPS: $0.23 vs. $(0.46) a year ago
- Operating cash flow: $2.5B in Q3
- R&D and MG&A: down 20% GAAP (down 17% non-GAAP)
Segment performance provided the ballast. Client Computing Group revenue rose 5% to $8.5B. Data Center and AI ticked down 1% to $4.1B. Intel Foundry revenue registered $4.2B, down 2% under the company’s segment reporting that includes intersegment transactions (with eliminations at the consolidated level).
Intel earnings also reflected portfolio changes. Effective September 12, 2025, Intel deconsolidated Altera after selling a 51% stake, with Q4 guidance excluding Altera results.
Guidance and outlook: what the latest Intel earnings imply
For the fourth quarter of 2025, management guided to:
- Revenue: 12.8B–12.8B–13.8B
- GAAP EPS: $(0.14)
- Non-GAAP EPS: $0.08
- Gross margin: 34.5% GAAP; 36.5% non-GAAP (at revenue midpoint)
Intel earnings guidance underscores two themes. First, the model is stabilizing around improved execution and tighter operating discipline. Second, near-term results will reflect the portfolio reshaping that removes Altera from consolidated numbers, even as Intel seeks to grow its core CPU, accelerator and foundry opportunities.
Management reiterated that demand is currently outpacing supply and expects that imbalance to continue into 2026, a supportive backdrop if execution on capacity and product ramps stays on track.
Strategic moves and capital: the quarter behind Intel earnings
The quarter’s most consequential developments extend beyond the P&L and frame the longer-term thesis that underpins Intel earnings momentum.
Highlights
- U.S. government funding: Agreement to support expansion of U.S. technology and manufacturing leadership with $8.9B committed; $5.7B received in Q3.
- NVIDIA collaboration: Plan to co-develop multiple generations of custom data center and PC products, pairing Intel’s CPU and x86 ecosystem strengths with NVIDIA’s accelerated computing via NVLink.
- Equity investments: NVIDIA invested $5.0B in Intel common stock; SoftBank Group invested $2.0B, signaling confidence in U.S.-based advanced manufacturing.
- 18A progress and products:
- Intel Core Ultra series 3 (Panther Lake) unveiled as the first client SoCs built on Intel 18A.
- Collaboration with Microsoft expands via Windows ML and Intel vPro manageability with Microsoft Intune.
- First look at Intel Xeon 6+ (Clearwater Forest) on 18A, highlighting power and performance gains.
- New inference-optimized GPU (Crescent Island) announced for token clouds and enterprise inference.
- Capacity milestones: Fab 52 in Chandler, Arizona—Intel’s fifth high-volume fab on the Ocotillo campus—became fully operational and is manufacturing 18A wafers.
- Portfolio actions: Intel received $5.2B upon completion of the Altera transaction and a stake sale of Mobileye.
Together, these steps speak to a two-track strategy: restore margins and cash flow today while positioning the company’s process technology and product roadmaps to compete at leading edge. As investors parse Intel earnings, confidence in 18A execution and foundry wins will be central to sustaining the narrative.
Intel earnings: segment trends and what’s driving performance
Intel earnings benefited from mixed but improving contribution across segments.
- Client Computing Group (CCG): $8.5B, up 5%
- PC demand and commercial refresh cycles are helping lift unit volumes and mix. Margin expansion from lower input costs and efficiency measures feeds through to results.
- Data Center and AI (DCAI): $4.1B, down 1%
- The segment remains a swing factor. Product cadence and attach of accelerators will determine the slope of recovery into 2026 as AI workloads proliferate.
- Intel Foundry: $4.2B, down 2% (segment reporting basis)
- The critical question is pipeline conversion on 18A, packaging offerings and external customer traction. The NVIDIA collaboration and government support are incremental positives, but revenue timing remains a key watch item.
Across the portfolio, Intel earnings showed substantial year-over-year margin repair, aided by lower restructuring charges, reduced operating expenses and improved product cost structures.
Accounting consultation: a caution flag within Intel earnings
Intel earnings included an important caveat. The company initiated a consultation with SEC staff regarding the accounting for U.S. government transactions completed in Q3 (including equity issuances and the amended CHIPS Act agreement). Due to the government shutdown, that consultation is not yet concluded. If SEC staff take a different view on the appropriate treatment, Intel may revise Q3 results, and such revisions could be material.
Investors should monitor updates on this process. The company believes it selected the appropriate accounting approach, but resolution timing depends on the pace of the consultation once government operations normalize.
Cash, balance sheet and liquidity
Intel earnings arrived with improved liquidity and notable balance sheet moves:
- Cash and short-term investments: $30.9B combined at quarter end (cash $11.1B; short-term investments $19.8B)
- Net operating cash flow: $2.5B in Q3; adjusted free cash flow positive
- Debt: $44.1B long-term; $2.5B short-term
- Stockholders’ equity: $106.4B attributable to Intel; total equity $116.7B including non-controlling interests
Government incentives, partner contributions and proceeds from divestitures (Altera, Mobileye stake sale) bolstered flexibility to fund 18A ramps and foundry expansion. Intel earnings also reflect lower GAAP R&D and MG&A as the company rebalances spending with strategic priorities.
AI, accelerators and the competitive frame
A recurring theme inside Intel earnings is the expanding TAM for AI compute and the need for a balanced portfolio that spans CPUs, accelerators and custom silicon. Management flagged:
- Purpose-built ASICs and accelerators to complement CPUs in data center and edge
- 18A as the platform for next-gen CPUs (Xeon 6+, Core Ultra) and GPUs (Crescent Island)
- A tighter software and ecosystem loop via Windows ML and vPro manageability with Microsoft Intune
The NVIDIA partnership is particularly notable. While the companies compete in multiple domains, co-developing custom solutions for hyperscale, enterprise and consumer markets suggests opportunities to bundle CPU and accelerated computing in new ways. For Intel earnings durability, evidence of design wins and customer traction will matter more than the headline alone.
Risks and variables to watch
Even with improving Intel earnings, investors should keep several swing factors in view:
- SEC consultation outcome on government transactions accounting
- 18A yield ramps and time-to-market for Panther Lake and Clearwater Forest
- Foundry customer conversion and external wafer volume commitments
- Supply/demand balance as management expects demand to exceed supply through 2026
- Macro and policy risks including tariffs, export controls and subsidy timing
- Competitive intensity across CPUs, accelerators and custom silicon
Forward-looking statements in the company’s release detail a broad set of uncertainties from technology execution to geopolitical dynamics that could affect results.
Market reaction and upcoming catalysts
Intel will host an earnings webcast at 2 p.m. PDT, with a replay and presentation on its investor relations site. Near-term catalysts that could influence sentiment around Intel earnings include:
- Management Q&A on 18A readiness, foundry pipeline and product sampling timelines
- Color on DCAI recovery and accelerator attach rates
- Updates on Fab 52 output ramp and capacity adds
- Any incremental disclosures around the NVIDIA collaboration
- Progress on deconsolidation impacts and capital allocation priorities
Given CFO commentary that demand is running ahead of supply, supply chain and tool availability will be closely watched into 2026.
Takeaway: execution gains set the stage for the next chapter
Intel earnings showed margin restoration, steady revenue growth and tangible steps to strengthen the balance sheet while advancing technology roadmaps. The combination of U.S. government funding, strategic equity investments by NVIDIA and SoftBank, and visible 18A milestones positions Intel to compete for leading-edge share across client, data center and foundry.
For the bull case, the path hinges on delivering 18A on schedule, converting foundry interest into revenue and expanding AI silicon attach without eroding margins. For the bear case, risks center on execution slippage, competitive pressure and potential accounting revisions related to government transactions.
As the company turns to Q4 and 2026, Intel earnings will remain the scoreboard. If product ramps, foundry traction and disciplined spending continue, the margin recovery evident this quarter could mark the start of a more durable upcycle.
FAQ’s
What were the headline numbers in Intel earnings for Q3 2025?
Intel earnings showed revenue of $13.7B (+3% YoY), GAAP EPS of $0.90, and non-GAAP EPS of $0.23. GAAP gross margin improved to 38.2% (non-GAAP 40.0%), and GAAP operating margin rose to 5.0% (non-GAAP 11.2%). By segment, CCG revenue was $8.5B (+5%), DCAI $4.1B (-1%), and Intel Foundry $4.2B (-2% on segment basis). Management highlighted improved execution and operating discipline.
What is the Q4 outlook from Intel earnings and what risks should investors watch?
For Q4 2025, Intel guides revenue to 12.8B–13.8B, GAAP EPS to $(0.14) and non-GAAP EPS to $0.08, with GAAP gross margin of 34.5% (non‑GAAP 36.5%) at the midpoint; guidance excludes Altera. Key watch items from Intel earnings include 18A yield ramps and product timing, foundry customer traction, DCAI recovery, and the stated view that demand is outpacing supply into 2026. A noted risk is the ongoing SEC consultation on accounting for U.S. government transactions; if the SEC staff disagrees with Intel’s approach, Q3 results could be revised.
Article Source: Intel
Image Source: Unsplash
