Intel forecasts Q4 revenue below estimates as PC slowdown and Israel fab incident weigh on outlook

Intel said its forecast for the fourth quarter shows revenue between $15 billion and $16 billion, falling short of the average analyst estimate of $17.07 billion, and adjusted earnings of $0.25 per share, below the $0.43 consensus. The company attributed the weaker outlook to a continued slowdown in the personal-computer market and to a recent explosion at its Kiryat Gat, Israel, fabrication plant, which halted production for two weeks and is expected to reduce revenue by about $300 million and cut gross margins by roughly 200 basis points.

Chief Financial Officer David Zinsner told Reuters that the PC slowdown is likely to persist through the first half of next year and that Intel will maintain disciplined investments in capacity and working capital to support future growth. He added that the firm is still evaluating which wafers from the incident are usable and that the impact could extend into the first quarter.

The incident affected the fab that primarily produces data-center chips using Intel’s 10-nanometer process, and the company plans to resume ramp-up at the facility by the end of the week. Intel also highlighted its ongoing capital-raising efforts, including a $23 billion share offering in August, and raised its 2026 capital-spending target to $20 billion, with further increases planned for 2027 to expand manufacturing capacity.

In the third quarter, Intel reported revenue of $16.51 billion, roughly in line with expectations, and adjusted profit of $0.52 per share, beating forecasts. However, sales in the PC chip segment fell 5 percent to $8.10 billion, missing estimates, underscoring investor concerns about demand stability in the personal-computing market.