Jerusalem, 30 October, 2026 (TPS-IL) — Intel has lowered its fourth-quarter outlook, citing a two-week shutdown at its Kiryat Gat plant following an October explosion that is expected to cost the company $300 million in revenue.
Chief Financial Officer David Zinsner said the disruption will also reduce gross margins by approximately 200 basis points. Intel now forecasts fourth-quarter revenue of $15 billion to $16 billion, versus analysts’ $17 billion estimate, and gross margins of just 37%, reflecting a roughly 200-basis-point decline.
The weaker outlook interrupts a run of strong quarterly results that had bolstered confidence in the company’s recovery plan. Intel also cited rising costs amid a global memory-chip shortage. CEO Lip-Bu Tan said the company is working urgently to increase chip supply.
The October 14 explosion triggered a major fire at the Kiryat Gat facility, killing two people and critically injuring another employee.