Intel Q4 2025 Earnings Report

Intel Navigates Mixed Quarter Amidst Foundry Ambitions and Soft Guidance

Intel reported fourth-quarter earnings that surpassed Wall Street expectations, signaling resilience in its core operations. However, the chip giant’s outlook for the current quarter fell short of analyst projections, leading to a notable dip in its stock price during after-hours trading.

The company announced adjusted earnings per share of 15 cents, exceeding the consensus estimate of 8 cents. Revenue for the quarter reached $13.7 billion, also beating the anticipated $13.4 billion. Despite these positive top-line and bottom-line results, Intel’s guidance for the first quarter painted a more cautious picture. The company projected first-quarter revenue to range between $11.7 billion and $12.7 billion, with adjusted earnings per share at breakeven. This forecast came in below LSEG expectations of 5 cents per share on $12.51 billion in sales, prompting investor concern.

During an interview, Intel’s chief financial officer, David Zinsner, attributed the conservative first-quarter guidance to supply constraints impacting seasonal demand. He indicated that these supply challenges are expected to ease in the second quarter. CEO Lip-Bu Tan echoed this sentiment, emphasizing the company’s focus on enhancing production efficiency, or “yield,” to bolster product availability. While Tan stated that yields are currently in line with internal plans, he acknowledged they remain below his desired levels, highlighting the ongoing efforts to optimize manufacturing processes.

Intel reported a net loss of $600 million, or 12 cents per diluted share, a wider deficit compared to the $100 million net loss, or 3 cents per share, reported in the same period last year.

The cautious outlook comes despite significant investor optimism surrounding Intel’s foundry business, which manufactures chips for external clients. The stock had seen a substantial rally of 147% over the past year, fueled by anticipation of Intel securing its first major anchor customer for its foundry services. This move is seen as a critical step in Intel’s broader strategy to diversify its revenue streams and challenge established players in the contract manufacturing space.

Tan has previously expressed confidence in Intel’s 18A manufacturing technology, positioning it as a competitive alternative to Taiwan Semiconductor Manufacturing Company’s advanced process nodes. He suggested that the technology had “over-delivered” in 2025, indicating its readiness for high-volume production of next-generation processors. Intel is reportedly working “aggressively” to scale up 18A production to meet burgeoning customer demand.

Looking ahead, Zinsner indicated that customers for Intel’s even more advanced 14A technology are expected to emerge in the latter half of the year. He suggested that significant capital investment in 14A would serve as a clear indicator of customer commitment, rather than early announcements.

Intel’s foundry segment generated $4.5 billion in revenue, a figure that includes revenue from internal chip production.

Further bolstering investor confidence is the strong performance of Intel’s latest server chips, which analysts attribute to increased spending on artificial intelligence infrastructure. The company’s Data Center and AI segment revenue climbed 9% year-over-year to $4.7 billion for the quarter. This segment plays a crucial role as AI workloads increasingly demand high-performance processing capabilities.

In contrast, sales from the Client Computing Group, which includes chips for laptops, experienced a 7% year-over-year decline, bringing in $8.2 billion in revenue.

The past year has seen significant strategic investments in Intel from major players, including the U.S. government, SoftBank, and Nvidia. Intel confirmed the completion of a $5 billion stock sale to Nvidia during the quarter, underscoring the collaborative efforts and strategic partnerships shaping the semiconductor landscape. These investments reflect a broader industry trend of consolidating and strengthening supply chains for critical advanced technologies.