Intel shares reportedly fell nearly 17% after hours on weaker fourth-quarter revenue forecast

The shortfall was in the outlook, not the quarter Intel had just finished. Revenue for the three months to September was $16.5 billion, in line with expectations, the FT reports. A Yahoo Finance earnings post put revenue at $16.51 billion against a $16.54 billion estimate and reported adjusted earnings per share of 52 cents against 41 cents expected.

Intel's product business, which sells the server and PC chips it designs, brought in $15.4 billion, in line with expectations, the FT reports. Its foundry business reported $6.7 billion in revenue. MarketWatch's Emily Bary reported that foundry sales were up 58% from a year earlier, while the business's operating loss narrowed to $1.9 billion from $2.3 billion.

Intel also projected that gross margins would fall to 37% in the current quarter amid higher costs from an industry-wide memory-chip shortage, according to the FT. Chief financial officer David Zinsner said a slowdown in the PC market would continue at least into the first half of 2027, the FT reported. MarketWatch's live earnings coverage also described the PC slowdown as a reason the outlook missed expectations.