Intel Raises Full Year Revenue, Profit Forecast
Intel raised its full-year revenue and profit forecasts, helped by strong growth in its data center business.
For the full year, the company said it expects to earn, on an adjusted basis, $3.25 per share on revenue of $62 billion.
Intel's third-quarter revenue was $16.1 billion. Excluding McAfee, revenue was up 6 percent year-over-year and data-centric businesses grew 15 percent year-over-year. The data center, Internet of Things and memory businesses all achieved record revenue.
The company also reported record operating income and record earnings per share (EPS), driven by strong data-centric growth, expanding operating margins and gains on the sale of equity investments.
"We executed well in the third quarter with strong results across the business, and we're on track to a record year," said Brian Krzanich, Intel CEO. "I'm excited about our progress and our future. Intel's product line-up is the strongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more."
"In the third quarter, we delivered record earnings, exceeded our EPS expectations, and increased our profit expectations for the full year," said Bob Swan, Intel CFO. "We feel great about Intel's transformation and where we are nine months into our three year plan."
In the third quarter, Intel saw strength across the business. The data center, Internet of Things and memory businesses all achieved record quarterly revenue, and Intel extended its leadership with the launches of 8th Gen Intel Core and Intel Xeon Scalable processors. Intel's FPGA business, the Programmable Solutions Group, is experiencing strong momentum, winning designs with automotive and cloud service provider customers that advance Intel's position in artificial intelligence. The company also furthered its autonomous driving efforts with customer wins and the completion of the Mobileye tender offer, four months earlier than
expected.
Revenue from Intel's higher-margin data center business rose 7 percent to $4.9 billion in the third quarter. Revenue from client computing, as Intel calls its PC chip business, remained flat at $8.9 billion.