Intel Stock crashes 21% despite earnings beat: Why is Wall Street worried about INTC’s Q4 outlook?

Intel stock (INTC) dropped sharply in after hours trading on Thursday after the chipmaker issued a weaker than expected fourth quarter forecast. Overshadowing a quarterly earnings beat and strong growth in its data center and AI business. INTC stock fell more than 21% after the earnings results.

The company reported adjusted earnings of 52 cents per share for the third quarter. Which was above Wall Street estimates of around 40 cents. Revenue climbed 21% from a year earlier to $16.51 billion, which narrowly missed analysts’ expectations of $16.56 billion, according to a CNBC report.

The market reaction reflected concerns about what lies ahead for Intel because despite stronger earnings, the company’s forecast for the final quarter of 2026 fell short of analysts’ expectations for both revenue and adjusted earnings.


Intel CFO David Zinsner said, “We see the PC slowdown continuing at least through the first half of next year,” adding, “We will continue making disciplined investments in capacity and working capital to increase supply and support future growth,” as quoted by CNBC.

INTC Stock Today: Intel’s Fourth Quarter Forecast Disappoints Investors

Intel expects fourth quarter revenue to range between $15 billion and $16 billion, which is below analysts’ estimates of approximately $17.08 billion.

The California headquartered company also forecast adjusted earnings of 25 cents per share, which was also below compared with Wall Street expectations of around 44 cents. The gap between Intel’s outlook and analysts’ estimates put pressure on the stock, despite the improvement in its latest quarterly results.

Data Center and AI Revenue Surges

Intel’s data center and AI business delivered one of the strongest performances in the quarter as revenue from the division rose 78% year over year to $7.3 billion.

However, growth was uneven across the company. Revenue from the Client Computing and Physical AI Group fell 5% to $8.1 billion, while Intel Foundry revenue increased 58% to $6.7 billion.

During the earnings call, Zinsner highlighted that, “We will remain disciplined as we invest, and we will not spend $1 of capital unless we have confidence in the health of our products and process technologies, and clear evidence of customer demand.”

What Intel Earnings Mean for INTC Stock

While Intel’s latest report delivered stronger than expected adjusted earnings, but its outlook raised concerns about the company’s near-term performance. The projected decline in fourth quarter revenue compared with analysts’ expectations was a key setback for investors.

The company now faces the challenge of sustaining growth in data center and AI while managing weakness in other parts of its business. Its next-quarter performance will offer a clearer picture of whether that growth can help offset the softer outlook.

However, CEO Lip-Bu Tan said, “Despite near term headwinds affecting the broader PC industry, we continue to see robust demand for CPUs and more broadly, for all our computing platforms in the long term,” quoted CNBC.