Intel reported that third‑quarter revenue rose 21 percent year‑on‑year to $16.51 billion, thanks to robust demand in data‑center and artificial‑intelligence (AI) markets. At the same time, net income fell 18 percent to $3.32 billion, while diluted earnings per share declined to $0.60 from $0.90 in the prior year.
The company’s gross margin improved to 43 percent from 38.2 percent, and non‑GAAP diluted earnings per share grew to $0.52 from $0.23. EPS under GAAP dropped to $0.90, though the figure is not reported as a separate line beyond the diluted EPS.
Revenue from Intel’s Data Center and AI segment surged 78 percent year‑on‑year to $7.3 billion, marking the strongest data‑center growth in 15 years. Client Computing and Physical AI Group revenue fell 5 percent to $8.1 billion, reflecting continuing headwinds in the personal‑computer market. Intel Foundry revenue increased 58 percent year‑on‑year to $6.7 billion, including transactions with other Intel business units.
Intel CEO Lip‑Bu Tan said: "Demand for the company's central processing units remained robust despite near‑term headwinds in the PC industry."
"Increasing supply to meet demand for Xeon server processors was an immediate priority."
Looking ahead, Intel expects fourth‑quarter revenue of between $15 billion and $16 billion. The company forecasts diluted earnings per share of $0.10 under GAAP and $0.25 on a non‑GAAP basis, with a gross margin of 37.1 percent for the period, down from 43 percent in Q3.