Quarterly guidance

Revenue
$15 billion to $16 billion
Gross Margin
38%
EPS
$0.25
Tax Rate
11%

Annual guidance

Operating Expenses
$16.3 billion for the full year
CapEx
2026 gross capital expenditures remains on track to be $20 billion

Outlook

Server Demand
Industry server CPU units are expected to grow more than 30% in both 2026 and 2027.
PC Market
The 2026 PC unit TAM is expected to decline approximately 12%, with a further 10% decline expected in 2027.
Investment
2027 is viewed as an investment year, making positive free cash flow unlikely.
Foundry Costs
Intel 3 costs improved approximately 15% from Q1 levels, while Intel 18A costs declined approximately 40% since Q1.
Israel Impact
The incident at the Israel factory is expected to impact Q4 revenue by roughly $300 million and gross margin by 200 basis points.