Ray tracing systems process rays through a 3D scene to determine intersections between rays and geometry in the scene, for rendering an image of the scene. Ray direction data for a ray can be compressed, e.g. into an octahedral vector format. The compressed ray direction data for a ray may be represented by two parameters (u,v) which indicate a point on the surface of an octahedron. In order to perform intersection testing on the ray, the ray direction data for the ray is unpacked to determine x, y and z components of a vector to a point on the surface of the octahedron. The unpacked ray direction vector is an unnormalised ray direction vector. Rather than normalising the ray direction vector, the intersection testing is performed on the unnormalised ray direction vector. This avoids the processing steps involved in normalising the ray direction vector.