INTC · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

INTEL CORP · 2026-10-30 · Importance 64 · Surprise 56 · In source text

Consolidated gross profit increased $1.9 billion, or 36%, in Q3 2026 and $5.5 billion, or 41%, YTD compared with the prior-year periods. Gross margin rose to 43.0% in Q3 from 38.2% and to 41.0% YTD from 34.3%. Higher product profit contributed $1.6 billion in Q3 and $2.9 billion YTD, primarily from higher revenue, while premium-product mix increased unit costs. Lower period charges added $328 million to Q3 gross profit and $2.6 billion to YTD gross profit, including the absence of $797 million of prior-year asset impairment and accelerated depreciation charges in YTD 2026.

Key facts

• Intel’s gross profit was $7.096 billion for the three months ended September 26, 2026, compared with $5.218 billion for the three months ended September 27, 2025. source
• Intel's consolidated gross profit increased $1.9 billion, or 36%, in Q3 2026 year over year; $1.6 billion of higher product profit was partly offset by higher unit costs from increased premium-product mix. source
• Intel's consolidated gross profit increased $5.5 billion, or 41%, in YTD 2026 year over year, including $2.9 billion of higher product profit and $2.6 billion of lower period charges. source
• Intel's Q3 2026 gross profit also benefited from $328 million of lower period charges, partly offset by higher inventory-related charges from aligning client product mix with customer demand. source

Impact estimates