Intel’s third quarter reflected improving operational execution and renewed interest in its core processor business, with management attributing the positive results to strong AI-driven demand and effective cost controls. CEO Pat Gelsinger highlighted that the company “significantly improved our cash position and liquidity,” driven by strategic partnerships and government support. Management also underscored momentum in Intel’s x86 franchise, noting that AI is “accelerating demand for new compute architectures” while also fueling growth in traditional computing. The company’s collaboration with NVIDIA was cited as a key factor in building out its AI platform capabilities and strengthening its competitive positioning.
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Intel (INTC) Q3 CY2025 Highlights:
- Revenue: $13.65 billion vs analyst estimates of $13.17 billion (2.8% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.01 (significant beat)
- Adjusted EBITDA: $4.52 billion vs analyst estimates of $3.42 billion (33.1% margin, 32.1% beat)
- Revenue Guidance for Q4 CY2025 is $13.3 billion at the midpoint, below analyst estimates of $13.4 billion
- Adjusted EPS guidance for Q4 CY2025 is $0.08 at the midpoint, below analyst estimates of $0.08
- Operating Margin: 5%, up from -68.2% in the same quarter last year
- Inventory Days Outstanding: 124, up from 122 in the previous quarter
- Market Capitalization: $197 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Intel’s Q3 Earnings Call
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Ross Seymore (Deutsche Bank) asked about the drivers of foundry optimism. CEO Pat Gelsinger pointed to tangible progress in yields and customer engagement on the 18A and 14A nodes, as well as increased demand from AI infrastructure investments.
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Joseph Moore (Morgan Stanley) inquired about customer commitments in foundry investments. Gelsinger emphasized building long-term trust by delivering reliable performance, while Zinsner noted existing capacity and flexibility to meet demand without overextending CapEx.
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Stacy Rasgon (Bernstein Research) questioned the pace of customer migration to new AI products. Zinsner replied that AI PC shipments are growing, but the strong demand for older products was unexpected and partly linked to non-AI drivers like Windows refresh cycles.
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Blayne Curtis (Jefferies) sought details on 18A yield improvement and margin trajectory. Zinsner explained that yields are progressing as planned but will take another year to reach industry-competitive levels, with margin improvement expected as higher-yielding nodes become a larger part of the mix.
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Joshua Buchalter (TD Cowen) asked about Intel’s ASIC strategy and the future of the 14A node. Gelsinger described the ASIC initiative as a way to extend x86 IP and meet custom silicon needs for cloud and system customers, and said increased customer engagement has improved confidence in 14A.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will focus on (1) Intel’s ability to ramp production of new nodes like 18A and Panther Lake while resolving ongoing supply constraints, (2) execution and adoption of AI-enabled products and the effectiveness of the NVIDIA partnership, and (3) sustained progress in the Intel Foundry business, particularly as customer commitments solidify. Tracking margin improvement as advanced manufacturing scales will also be a key indicator of operational success.
Intel currently trades at $41.13, up from $38.16 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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