On October 26, 2023, Intel Corp (INTC, Financial) released its third-quarter 2023 financial results. Despite a YoY revenue decline of 8%, the company exceeded the high end of its guidance. The company's EPS benefited from strong operating leverage and expense discipline, and key milestones were achieved across process and product, foundry, and artificial intelligence (AI).
Financial Highlights
Intel Corp (INTC, Financial)'s Q3 2023 revenue was $14.2 billion, down 8% from Q3 2022. Gross margin was slightly down by 0.1 ppt to 42.5%. Operating margin improved by 1 ppt to -0.1%. Net income attributable to Intel was $0.3 billion, down 71% YoY, and EPS attributable to Intel was $0.07, down 72% YoY.
On a non-GAAP basis, the company reported a gross margin of 45.8%, down 0.1 ppt YoY, and an operating margin of 13.6%, up 2.8 ppts YoY. Non-GAAP net income attributable to Intel was $1.7 billion, up 14% YoY, and non-GAAP EPS attributable to Intel was $0.41, up 11% YoY.
Business Unit Performance
Revenue for the Client Computing Group (CCG) was $7.9 billion, down 3% YoY. The Data Center and AI (DCAI) unit reported revenue of $3.8 billion, down 10% YoY. The Network and Edge (NEX) unit saw a significant decline with revenue of $1.5 billion, down 32% YoY. Mobileye reported an increase in revenue of 18% YoY to $530 million. Intel Foundry Services (IFS) saw a significant increase in revenue of 299% YoY to $311 million.
Outlook
For Q4 2023, Intel Corp (INTC, Financial) guides revenue of $14.6 billion to $15.6 billion, GAAP EPS attributable to Intel of $0.23, and non-GAAP EPS attributable to Intel of $0.44.
Commentary
Intel CEO, Pat Gelsinger, commented on the results,
We delivered a standout third quarter, underscored by across-the-board progress on our process and product roadmaps, agreements with new foundry customers, and momentum as we bring AI everywhere."CFO, David Zinsner, added,
Our results exceeded expectations for the third consecutive quarter, with revenue above the high end of our guidance and EPS benefiting from strong operating leverage and expense discipline."
Dividend Announcement
The company's board of directors declared a quarterly dividend of $0.125 per share on the company’s common stock, which will be payable Dec. 1, 2023, to shareholders of record as of Nov. 7, 2023.
Explore the complete 8-K earnings release (here) from Intel Corp for further details.
