Intel beat Q3 EPS by about 28%, and the stock is down 25.9% in premarket trading anyway, at $68.22 versus Thursday's $92.07 close as of…
Intel beat Q3 EPS by about 28%, and the stock is down 25.9% in premarket trading anyway, at $68.22 versus Thursday's $92.07 close as of 9:10am ET. That's the kind of reaction you get when a stock is priced for a story and the forward guide doesn't cooperate.
The Q3 numbers were good. Adjusted EPS came in at $0.52 against roughly $0.40 expected. Revenue was $16.51B, up 21% year over year and essentially in line with estimates. Data Center and AI revenue grew 78% to $7.3B, Intel's strongest data-center growth in 15 years. Client Computing fell 5% to $8.1B.
Then came Q4 guidance: $15-16B in revenue versus roughly $17B expected, and adjusted EPS of $0.25 versus about $0.42. Intel also put about $300M of Q4 revenue impact on its Israel fab incident and expects a similar hit in Q1. CFO David Zinsner said the PC market slowdown would continue "at least through the first half of next year." That one line probably did more damage than any number on the page.
Context matters here. Intel was up roughly 150% this year before the report, though it had already pulled back about 20% over the prior month on broader worries about AI-infrastructure spending. A run like that leaves very little room for a soft outlook.
My read: the data-center growth is real, but the market just got reminded that the PC business still sits underneath it. I'm curious how many people who drove that 150% run had actually priced that part in.
Sources:
Investing.com: https://in.investing.com/news/stock-market-news/why-is-intel-stock-crashing-today-93CH-5666722
Yahoo Finance: https://finance.yahoo.com/markets/stocks/articles/intel-shares-plunge-25-weak-102052649.html
Business Wire (Intel official): https://www.businesswire.com/news/home/20261029327355/en/
Not financial advice. For informational and educational purposes only.
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