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Intel forecasts fourth-quarter revenue below estimates; shares plunge 22% after hours
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Intel issued fourth-quarter revenue guidance of $15-16 billion, below analysts' average estimate of $17 billion, citing a sharp decline in PC processor demand and difficulty keeping up with surging demand for high-margin data center components. Adjusted earnings per share are projected at 25 cents, versus Wall Street's 43-cent expectation. CEO Lip-Bu Tan said memory price increases are a major challenge and will become a severe problem for the industry by 2027. Intel expects the PC market downturn to persist through at least the first half of 2027, with a further 10% decline next year after a 12% drop in 2026. Following the earnings release, Intel shares fell 22% in after-hours trading.
Source report
October 30 — Intel (INTC.O) issued revenue guidance below analyst expectations, citing a sharp decline in demand for PC processors and the company's difficulty keeping pace with surging demand for high-margin data center components.
Q4 Outlook
Intel said Thursday that it expects fourth-quarter revenue of $15 billion to $16 billion, compared with an average analyst estimate of $17 billion — with some forecasts exceeding $18 billion. Excluding certain items, the company expects earnings of 25 cents per share for the quarter, versus Wall Street's adjusted EPS estimate of 43 cents.
PC Market Downturn
Intel is facing a severe downturn in the PC market, as its key customers — laptop and desktop manufacturers — grapple with memory chip shortages and soaring component prices.
Speaking about the PC market, CEO Lip-Bu Tan said: "Basically one of the main challenges is memory. Memory prices have risen significantly. I think by 2027, this will become a very serious problem for all of us. The entire market has been affected."
Market Forecast
Intel expects the PC market downturn to last at least through the first half of 2027, with a further 10% decline next year following a 12% drop in 2026.
Market Reaction
Following the earnings release, Intel shares plunged 22% in after-hours trading.
Source
domesticNeutral / independent
Part of this Story
Intel shares plunge nearly 29% as weak Q4 outlook cuts US stake by $11 billion