After semiconductor giant Intel announced its third-quarter results, its shares plunged in October. Revenue was roughly in line with expectations and profit exceeded them, but fourth-quarter guidance was below market expectations, deepening skepticism about the turnaround.
Intel's revenue for the July-September 2026 quarter rose 20.9% year on year to $16.5 billion, roughly in line with analyst expectations. Adjusted earnings per share were $0.52, above the forecast of $0.39, while GAAP earnings per share were approximately $0.63.
Fourth-quarter revenue guidance announced together with the results was lowered to $15 billion-$16 billion, a level expected to be below the previous quarter. Shares subsequently plunged, according to reports.
Reports pointed to slowing semiconductor demand for AI servers and sluggish growth in the PC business, while also noting that Intel cited higher costs resulting from soaring memory prices. The market has grown more cautious about the path to a management turnaround.