Intel $INTC just hit a wall.
After a red-hot start to 2026, the stock dropped as much as 14% early Friday as the company’s Q1 outlook came in well below expectations, even though Q4 numbers were actually solid.
The quarter was fine (even good)
Intel’s Q4 print was a clean beat across the board:
Revenue came in at $13.7B vs. $13.44B expected
Adjusted EPS was $0.15 vs. $0.08 expected
So this wasn’t a “bad quarter” story.
It was a “future looks softer than the Street wanted” story.
Guidance was the problem
Intel guided Q1 2026 revenue to $11.7B to $12.7B, with a midpoint of $12.2B.
Wall Street was looking for $12.57B.
Even worse, Intel expects adjusted EPS to be break-even in Q1, while analysts expected $0.08.
That’s the part that made investors hit the sell button.
Turnaround talk (but no quick fix)
On the call, CEO Lip-Bu Tan basically acknowledged this won’t be an overnight reversal, saying it will take “time and resolve” to turn Intel around.
Not exactly the quote that sparks dip buyers.
Intel blamed supply constraints
Management framed the weak outlook as a supply issue more than demand collapse.
CFO David Zinsner said supply will be at its lowest point in Q1, before improving in Q2 and beyond.
In other words: Q1 is the pain point.
Why this move is such a big deal
Intel was one of the biggest winners in the entire market to start the year.
Shares had surged nearly 50% in 2026 coming into this report, fueled by retail flow into both stock and options, and it was the #3 best YTD performer in the S&P 500 as of Wednesday.
So when guidance missed, the unwind was violent.
This is what happens when a stock is priced for momentum and the outlook suddenly turns cautious.