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# Intel CFO Says Free Cash Flow Probably Stays Negative In 2027 — Calls Year A 'Knothole'
- URL: https://www.bullished.co/intel-cfo-says-free-cash-flow-probably-stays-negative-in-2027-calls-year-a-knothole-ad25abf5/
- Published: 2026-10-29T22:36:04.000Z
- Updated: 2026-10-29T22:36:04.000Z
- Description: Dave Zinsner said a pile of factory spending hits in one year, with 2026 gross capital spending on track for $20 billion.
- Author: Matteo Parrino
- Tags: Earnings, INTC, Industry: Technology

[Intel](https://www.bullished.co/tag/intc/) will probably not generate positive free cash flow in 2027, Chief Financial Officer Dave Zinsner told analysts on the [chipmaker's third-quarter earnings call](https://www.cnbc.com/2026/10/29/intel-intc-q3-earnings-report-2026-.html?ref=bullished.co) Thursday, because spending on three manufacturing nodes lands in the same year. Intel reported $5.1 billion in operating cash flow for the third quarter.

## "An investment year"

A UBS managing director asked whether Intel was committed to free cash flow next year, noting that many analysts expect capital spending near $30 billion. Zinsner said Intel has not locked a number, which it does not do until late in the year, but has a directional sense and has been placing purchase orders with equipment vendors given lead times.

He called 2027 "an investment year" and said it is "probably not a dynamic where we're going to have positive free cash flow next year." Intel will be ramping 18A, ramping Intel 3 to some extent, and positioning 14A to begin production in 2028\. "That's a lot of investment all hitting us in one year," he said.

The company has to get through what Zinsner called "basically a knothole here in 27."

## The capital spending numbers

Gross capital spending for 2026 remains on track for $20 billion, Zinsner said, and 2027 spending will be "up strongly." Firm purchase orders to equipment suppliers rose nearly 40% from the prior quarter. Most of the current spend is equipment, he told a Cantor Fitzgerald analyst, with Ohio still in heavy construction.

He argued the outlay pays off: Intel expects at least a 20% return on investment on each node, and Intel 3 will be profitable next year. He said Intel remains committed to deleveraging in 2027 despite higher spending and working capital.

The cash burn, he said, is why Intel raised $23 billion in an equity offering in early August. Intel ended the quarter with about $54 billion in cash and short-term investments, plus $15 billion of [borrowing capacity](https://www.cnbc.com/2026/10/29/intel-intc-q3-earnings-report-2026-.html?ref=bullished.co) under its extended revolvers, up from $10 billion.

## Growth year, weak PCs

Zinsner described 2027 as a growth year driven by data-center demand, though supply of wafers and substrates stays tight in the first half. For PCs, Intel plans for unit demand to fall roughly 10% in 2027 after about 12% in 2026, as memory shortages hit customers.

CEO Lip-Bu Tan said Intel is evaluating ways to accelerate its Ohio build-out and hopes to share more in the near future.

Zinsner's pitch to holders: Intel 7 is already profitable, Intel 3 will be next year, and "these businesses generate lots of cash flow" once 2027 passes.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [Intel (INTC) Q3 earnings report 2026](https://www.cnbc.com/2026/10/29/intel-intc-q3-earnings-report-2026-.html?ref=bullished.co) — CNBC
- [Intel crashes as Q3 results, guidance miss Wall Street's forecasts (INTC:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4660336-intel-slides-as-q3-results-guidance-miss-wall-streets-forecasts?ref=bullished.co) — seekingalpha.com
- [Intel's stock tumbles after earnings. Here's what's worrying Wall Street.](https://www.marketwatch.com/livecoverage/intel-earnings-stock-results-intc-q3?mod=bulletin%5Fribbon&ref=bullished.co) — MarketWatch
- [Intel tops Q3 earnings estimates, but falls short of Q4 outlook on sluggish PC sales as stock plunges 20%](https://finance.yahoo.com/technology/article/intel-to-report-q3-earnings-as-chip-stocks-continue-to-rebound-221713961.html?ref=bullished.co) — Yahoo Finance
- [Intel Forecast Disappoints as Israel Fab Blast, PC Weakness Weigh](https://money.usnews.com/investing/news/articles/2026-10-29/intel-signals-slower-growth-as-pc-market-remains-under-pressure?ref=bullished.co) — Reuters

### More on Intel

- [Intel CEO Sees Server CPU Market Reaching $200 Billion, While Guiding Client Revenue Down 20%](https://www.bullished.co/intel-ceo-sees-server-cpu-market-reaching-200-billion-while-guiding-client-revenue-down-20-99276d9e/)
- [Intel's Data Center Revenue Jumps 78% To $7.3 Billion, But PC Chips Fall 5% And Guidance Dips](https://www.bullished.co/intels-data-center-revenue-jumps-78-to-7-3-billion-but-pc-chips-fall-5-and-guidance-dips-ced7459d/)

[All Intel (INTC) coverage →](https://www.bullished.co/tag/intc/)