Yes, it does. If it is 'hardcoded', then the intelligence lies in whatever 'hardcoded' it, not in the entity following the 'hardcoding'. Genetic algorithms have a certain amount of intelligence, although slow and clumsy. The fact that the world's biggest genetic algorithm* can program a spider to build an elegant solution does not mean the spider itself is intelligent.
* If you treat the algorithm for spiders and beetles as the same... I strongly suspect that a significant portion of the algorithm is actually implemented within the genes. For example, control genes massively amplify the effect of small genetic changes, allowing creatures using them to evolve faster than those without.