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Intel reports its Q3 2023 financial results

by on27 October 2023

Revenue down but beats its outlook

Intel has announced its third quarter 2023 financial results, reporting a revenue of $14.2 billion with a 45.8 percent gross margin, and $0.41 EPS. The report shows Intel getting back on track and steady progress on its IDM 2.0 strategy.

In terms of sheer numbers, Intel has reported a revenue of $14.2 billion, which is down by 8 percent compared to the last year, but $0.8 billion above its July outlook. Gross margin was at 45.8 percent, making it flat compared to the last year, and up by 2.8 percent compared to the previous quarter's outlook. The EPS is at $0.41, up by 11 percent compared to the last year, and above the July outlook by $0.21.


When it comes to specific businesses, Intel's Client Computing Group (CCG) is the biggest earner at $7.9 billion, followed by Data Center and AI (DCAI) at $3.8 billion. The Network and Edge (NEX) group brought in $1.5 billion. The Mobileye group $530 million, and Intel Foundry Services (IFS) snagged $311 million.


Intel was keen to note that the company is on track to meet its goal of bringing five nodes in four years in order to regain transistor performance and power performance leadership by 2025. The Intel 4, the company's first node based on EUV technology, is now in high-volume manufacturing, and the Intel 18A is on track. Intel was also keen to note its AI everywhere strategy, detailed at the Intel Innovation 2023.

When it comes to client computing, Intel Core 14th gen Raptor Lake Refresh CPUs are already selling, and it has started shipping its Intel Core Ultra Meteor Lake CPUs, based on Intel 4 manufacturing process, which will officially launch on December 14th, alongside Intel's 5th gen Xeon processors.

In Q4 2023, Intel expects a revenue of $14.6 to $15.6 billion with a gross margin of 46.5 percent, and EPS of $0.44.


"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," said Pat Gelsinger, Intel CEO. "We continue to make meaningful progress on our IDM 2.0 transformation by relentlessly advancing our strategy, rebuilding our execution engine and delivering on our commitments to our customers."

David Zinsner, Intel CFO, said, "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. As demonstrated by our recent portfolio actions, we are highly focused on being great allocators of our owners' capital and unlocking value for shareholders."

You can check out more details and find a link for the public webcast over on Intel's Investor Relations website.

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