# Goldman Sees Intel’s Profit Recovery Tested by PC Weakness By John Kim Canonical URL: https://www.tokenpost.com/news/business/44171 Published: 2026-10-30T02:58:48.000Z Updated: 2026-10-30T02:58:48.000Z Section: Business > Intel’s $0.25 fourth-quarter adjusted EPS outlook trailed the $0.43 consensus, even after third-quarter adjusted EPS beat estimates at $0.52. Goldman Sachs said Intel’s PC weakness is still limiting its profit recovery, pointing to a fourth-quarter adjusted earnings forecast of $0.25 a share, below the $0.43 consensus. Intel’s third-quarter results showed stronger profitability than revenue. Adjusted earnings per share were $0.52, ahead of the $0.39 consensus, and adjusted gross margin was 44.1%, compared with 41.9% expected. Revenue rose 20.9% year over year to $16.513 billion, slightly above the $16.419 billion consensus but below Goldman’s $17.027 billion estimate. Performance varied across Intel’s businesses. Client Computing revenue was $8.097 billion, about 8.9% below consensus and lower than a year earlier. Data Center and AI revenue reached $7.318 billion, 11.1% above consensus, while Intel Foundry generated $6.697 billion, also above expectations. The segment results showed strength in data center and foundry revenue alongside weakness in the PC-focused business. Intel’s [fourth-quarter outlook]() puts that gap into focus. The company projected revenue of $15 billion to $16 billion, with a midpoint of $15.5 billion, below the $17.018 billion consensus. It forecast an adjusted gross margin of 38%, compared with 42.5% expected, and adjusted EPS of $0.25 versus $0.43. Goldman maintained a neutral rating and a 12-month price target of $150. Its valuation framework uses normalized earnings of $5 per share and a 30-times price-to-earnings multiple. The bank listed broader adoption of Intel Foundry services, stronger server demand and gains in server share as potential supports. It also cited a margin recovery stronger than expected as an upside factor. Goldman named a slower advanced-process ramp and a decline in server processor share as risks. The bank also flagged Intel’s capital spending outlook as an item to monitor. Its assessment ties the profit recovery to PC demand, server performance, foundry customer adoption and manufacturing progress. ## Links in this article - [fourth-quarter outlook](https://www.tokenpost.com/news/business/43953)