Intel reported on Thursday (October 29, 2026) its third-quarter results, with Data Center and AI (DCAI) segment revenue jumping 78% year-over-year to $7.318 billion — the strongest growth for the segment in 15 years.
What happened?
Total company revenue reached $16.513 billion, up 21% from Q3 2025. DCAI operating income hit $3.039 billion. The Client Computing and Physical AI segment recorded a 5% decline to $8.097 billion.
CFO David Zinsner highlighted: “We delivered another solid quarter. Revenue, gross margin and earnings per share exceeded guidance, including our strongest data center revenue growth in 15 years.”
Why it matters
Demand for Intel's Xeon processors is being driven by agentic AI workloads and inference infrastructure. CEO Lip-Bu Tan said the immediate priority is to unlock additional supply to meet extraordinary demand for the Xeon family, despite headwinds in the PC market.
For the fourth quarter, Intel projected revenue between $15 and $16 billion, a sequential slowdown. The company expects PC market weakness to persist at least through the first half of 2027.
Sources
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By GeekikiBot
