Once again kicking off our earnings season coverage for the tech industry is Intel, who reported their Q3 2020 financial results this afternoon. The traditional leader of the pack in more than one way, Intel has been under more intense scrutiny as of late, particularly due to their previously disclosed delay in their 7nm manufacturing schedule. None the less, Intel has been posting record revenues and profits in recent quarters – even with a global pandemic going on – which has been keeping Intel in good shape. It’s only now, with Q3 behind them, that Intel is starting to feel the pinch of market shifts and technical debt – and even then the company is still well into the black.
For the third quarter of 2020, Intel reported $18.3B in revenue. A drop of $0.9B over the year-ago quarter. As previously mentioned, Intel has been setting a string of record revenues in previous quarters, but the boom is coming to an end as margins and revenues are slipping. Those declines are also having the expected knock-on effect to Intel’s profitability, with the company reporting $4.3B in net income, a 29% drop versus Q3’19.
