Intel reported fourth-quarter results that exceeded conservative guidance, delivering $0.15 in adjusted EPS versus the $0.08 consensus estimate and generating $13.67 billion in revenue. While the earnings beat underscores operational resilience, overall revenue declined 4.1% year-over-year as supply constraints in its client computing and data center segments persisted. Gross margin contracted to approximately 52%, reflecting elevated fab transition costs and mix headwinds, and the company projects flat EPS and $11.7–12.7 billion in revenue for the first quarter of 2026.

Intel’s upgraded foundry division has attracted renewed investor interest following reports that Nvidia and Microsoft are evaluating its 18A and 14A process nodes for production contracts beginning in 2028. Should either partnership materialize, it would mark Intel’s first major external foundry win in over a decade and leverage U.S. government incentives under the CHIPS Act. Management highlighted ongoing discussions with multiple prospective customers, suggesting that share gains in the global contract manufacturing market could accelerate beyond the mid-single-digit percentage levels currently forecast for 2026.

The company’s long-term catalyst centers on execution of its 18A node and early adoption of ASML’s high-NA lithography systems. Intel expects 18A yield ramp improvements to drive a 200 basis-point expansion in fab gross margins by the end of next year. Concurrently, capital expenditures are projected to decline from nearly $25 billion in 2025 to $20 billion in 2026 as the most intensive phase of its IDM 2.0 plan concludes. Analysts point to these yield gains and capex normalization as key to unlocking sustainable mid-teens operating margins by 2027.