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Can Slightly Higher Processor Revenues Aid Intel's Q3 Earnings?
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Key Takeaways
Intel's Q3 CCG revenues are projected to rise to $8.93 billion from $8.54 billion in the year-ago quarter.
Intel's Google Cloud AI collaboration and Core Ultra Series 3 processors may support CCG revenue growth.
Intel faces stiff competition and rising costs, while Q3 earnings are projected at 39 cents per share.
Intel Corporation (INTC - Free Report) is scheduled to report third-quarter 2026 earnings after the closing bell on Oct. 29. In the to-be-reported quarter, the company is likely to have recorded slightly higher revenues from the Client Computing Group (CCG) segment despite high customer inventory levels and a conservative approach toward placing orders for high-value items.
Factors at Play
CCG is the company’s largest segment and accounts for the lion’s share of total revenues. It includes computer CPUs, several server boards, form factor systems and graphic products.
During the quarter, Intel expanded its multi-year collaboration with Alphabet Inc.'s Google Cloud. The partnership will help Intel integrate generative AI and cloud technologies across its global operations to support innovation and business growth. Under the agreement, Intel will deploy Gemini Enterprise across its workforce, enabling employees to automate tasks and enhance workflows across engineering, supply chain and corporate operations. Through this collaboration, Intel aims to strengthen its position in AI-driven enterprise and semiconductor innovation. The company will also utilize the Gemini Enterprise Agent Platform to create custom AI tools for different business functions. In addition, Intel is exploring AI solutions to improve marketing and communications by generating targeted content, identifying relevant subject-matter experts and preparing executive materials more efficiently. These developments are likely to have supported the CCG segment’s top line during the quarter.
Intel also extended its Core Ultra platform to new Googlebook laptops powered by Intel Core Ultra Series 3 processors. The latest processors deliver responsive performance and power efficiency for modern computing. Built on Intel’s advanced 18A process technology, the Core Ultra Series 3 integrates CPU, GPU and NPU architectures to support demanding workloads and AI-enabled experiences. The platform is designed to help users multitask across applications while maintaining efficient power consumption for longer battery life. The company has also added enhanced connectivity features to the new Googlebook laptops, including Intel Wi-Fi 7, Dual Intel Bluetooth 6.0 and Intel Thunderbolt. These technologies deliver fast and reliable connections across different environments while supporting seamless device experiences.
However, Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days. Aggressive competition is likely to limit the ability to attract and retain customers and affect operating and financial results.
Moreover, high raw material prices due to Middle East tensions, the prolonged Russia-Ukraine war and the consequent economic sanctions against the Putin regime have affected the operation schedules of various firms, affecting Intel’s demand schedule. High technological obsolescence of most products has further escalated operating costs.
Overall Expectations
The Zacks Consensus Estimate for CCG revenues is pegged at $8.93 billion, indicating an improvement from $8.54 billion in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $16.44 billion, which indicates an increase from the year-ago quarter’s reported figure of $13.65 billion. The consensus estimate for earnings of 39 cents per share suggests an improvement from 23 cents reported in the prior year.
Earnings Whispers
Our proven model predicts an earnings beat for Intel for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intel currently has an ESP of +2.22% with a Zacks Rank #1.
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Monolithic Power Systems, Inc. (MPWR - Free Report) is set to release quarterly numbers on Oct. 29. It has an Earnings ESP of +1.35% and carries a Zacks Rank #2.
The Earnings ESP for InterDigital, Inc. (IDCC - Free Report) is +0.77% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct. 29.
The Earnings ESP for Advanced Micro Devices, Inc. (AMD - Free Report) is +2.55% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 3.
View the Zacks #1 Rank List
Image: Bigstock
Can Slightly Higher Processor Revenues Aid Intel's Q3 Earnings?
Key Takeaways
Intel Corporation (INTC - Free Report) is scheduled to report third-quarter 2026 earnings after the closing bell on Oct. 29. In the to-be-reported quarter, the company is likely to have recorded slightly higher revenues from the Client Computing Group (CCG) segment despite high customer inventory levels and a conservative approach toward placing orders for high-value items.
Factors at Play
CCG is the company’s largest segment and accounts for the lion’s share of total revenues. It includes computer CPUs, several server boards, form factor systems and graphic products.
During the quarter, Intel expanded its multi-year collaboration with Alphabet Inc.'s Google Cloud. The partnership will help Intel integrate generative AI and cloud technologies across its global operations to support innovation and business growth. Under the agreement, Intel will deploy Gemini Enterprise across its workforce, enabling employees to automate tasks and enhance workflows across engineering, supply chain and corporate operations. Through this collaboration, Intel aims to strengthen its position in AI-driven enterprise and semiconductor innovation. The company will also utilize the Gemini Enterprise Agent Platform to create custom AI tools for different business functions. In addition, Intel is exploring AI solutions to improve marketing and communications by generating targeted content, identifying relevant subject-matter experts and preparing executive materials more efficiently. These developments are likely to have supported the CCG segment’s top line during the quarter.
Intel also extended its Core Ultra platform to new Googlebook laptops powered by Intel Core Ultra Series 3 processors. The latest processors deliver responsive performance and power efficiency for modern computing. Built on Intel’s advanced 18A process technology, the Core Ultra Series 3 integrates CPU, GPU and NPU architectures to support demanding workloads and AI-enabled experiences. The platform is designed to help users multitask across applications while maintaining efficient power consumption for longer battery life. The company has also added enhanced connectivity features to the new Googlebook laptops, including Intel Wi-Fi 7, Dual Intel Bluetooth 6.0 and Intel Thunderbolt. These technologies deliver fast and reliable connections across different environments while supporting seamless device experiences.
However, Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days. Aggressive competition is likely to limit the ability to attract and retain customers and affect operating and financial results.
Moreover, high raw material prices due to Middle East tensions, the prolonged Russia-Ukraine war and the consequent economic sanctions against the Putin regime have affected the operation schedules of various firms, affecting Intel’s demand schedule. High technological obsolescence of most products has further escalated operating costs.
Overall Expectations
The Zacks Consensus Estimate for CCG revenues is pegged at $8.93 billion, indicating an improvement from $8.54 billion in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $16.44 billion, which indicates an increase from the year-ago quarter’s reported figure of $13.65 billion. The consensus estimate for earnings of 39 cents per share suggests an improvement from 23 cents reported in the prior year.
Earnings Whispers
Our proven model predicts an earnings beat for Intel for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intel currently has an ESP of +2.22% with a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Monolithic Power Systems, Inc. (MPWR - Free Report) is set to release quarterly numbers on Oct. 29. It has an Earnings ESP of +1.35% and carries a Zacks Rank #2.
The Earnings ESP for InterDigital, Inc. (IDCC - Free Report) is +0.77% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct. 29.
The Earnings ESP for Advanced Micro Devices, Inc. (AMD - Free Report) is +2.55% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 3.