Schwab Network on $INTC (Oct 30, 2026)
Intel is assessed bearishly because weak Q4 guidance—revenue between $15 billion and $16 billion, about a billion dollars light, and adjusted EPS of 25 cents versus 43 cents expected—outweighs a decent quarter with revenue in line at $16.51 billion and EPS of 52 cents versus 40 cents. PC revenue fell 5% year over year, with PCs expected down in the mid-20% range and a first-half-2027 slowdown on higher memory costs, while data-center shortages and an Israeli fab hit expected to cost $600 million in revenue over two quarters also weigh.
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All right let's talk Intel. as stock being slammed today in uh early trading here. Yeah, this is because of a weak guidance. If you actually look at the quarter, it reported for the most part decent earnings.
Revenue came in line with the street's expectations at 16.51 billion. The adjusted earnings per share came in at 52 cents. Street was looking at 40 cents.
But when you're looking at the PC group, that actually was down 5% on a year-over-year basis. And their guidance came in light, actually about a billion dollars. Their revenue guidance for Q4 is between 15 billion and $16 billion.
Sh was looking for $7.07 billion. And when you're looking at the adjusted earnings per share estimate that came in at 25 cents for the Q4 guide, Street was looking for 43 cents.
And this is all on the PC side, they are actually expecting that to be down uh to the mid 20% range for the quarter and they are expecting a slowdown in the first half of 2027.
This is because of the rising cost when it comes to memory and that pricing increase for a lot of those PCs may be dampening demand which has been a fear uh for some within the market.
They're also unable to really capitalize on the data center business as much as they would like to uh to be able to do so because of the shortages within that business.
Now, they also blame some of the myth here because of an Israeli uh fabrication factory that was actually hit because of obviously the conflict that's happening over there. And they expected to have around a $600 million impact or loss of revenue over the next two quarters.
And they also did see an impact when it came to margins in the current quarter as well.
But that's still not enough to basically offset the weakness and guidance that they provided for Q4.
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