Intel Shares Drop More Than 16% on PC Market Slowdown Outlook

Intel shares fell more than 16% in after-hours trading after the company forecast that a slowdown in the PC market would last at least through the first half of 2027. The outlook accompanied a fourth-quarter revenue forecast below Intel’s third-quarter total.

Intel reported third-quarter revenue of $16.5 billion, up 21% from a year earlier. Earnings per share were $0.60, while non-GAAP earnings per share were $0.52. For the fourth quarter, Intel projected revenue of $15 billion to $16 billion, earnings per share of $0.10 and non-GAAP earnings per share of $0.25.

Intel CFO David Zinsner said data center revenue had its strongest growth in 15 years during the quarter. He also said the PC market slowdown is expected to continue for at least through the first half of next year. The results pair year-over-year revenue growth with a forecast of continued weakness in the PC market.