Intel's Straight-Line Surge
In the early morning of October 24 Beijing time, Intel announced its Q3 2025 financial data and Q4 performance guidance. The financial report shows the company achieved Q3 revenue of $13.7 billion, a 3% YoY increase, higher than analysts' expectations of $13.2 billion; adjusted earnings per share were $0.23, compared to a loss per share of $0.46 in the same period last year, higher than analysts' expectations of $0.01; under non-GAAP measures, Q3 recorded a net profit of $1 billion, achieving profitability for the first time since the end of 2023.
Affected by this, Intel's stock price surged in a straight line during after-hours trading on Thursday, once skyrocketing over 9%. As of 06:30, the gain reached 7.13%. At the close of overnight US stock trading, Intel's stock price rose over 3%.
The financial report shows Intel's Q3 adjusted gross margin was 40.0%, significantly higher than analysts' expectations of 35.7%. Q2 was 29.7%, and the same period last year was 18%, reaching a new high since Q1 of last year.
By business segment, Intel's Client Computing Group (CCG) contributed revenue of $8.5 billion in Q3, a 5% YoY increase, higher than analysts' expectations of $8.2 billion; Data Center and AI (DCAI) business contributed revenue of $4.1 billion, a 1% YoY decrease, but still higher than analysts' expectations of $3.97 billion; Intel Foundry business contributed revenue of $4.24 billion, lower than analysts' expectations of $4.51 billion.
Regarding performance guidance, Intel expects Q4 revenue between $12.8 billion and $13.8 billion, while analysts expected $13.44 billion; Q4 adjusted EPS is $0.08; Q4 adjusted gross margin is 36.5%.
Intel's CFO Dave Zinsner stated that in the third quarter, Intel's chip demand was strong, leading to tight supply for the company. One reason is that data center operators realized they need to upgrade their central processing units to keep up with the application of advanced AI chips.
Dave Zinsner stated in the declaration: "Currently, supply cannot meet demand, and we expect this trend to continue into 2026."
