Intel Corporation (INTC) Q1 2025 Earnings Report

Intel delivered a mixed QQ1 2025 result: revenue of $12.667 billion and a non-GAAP gross margin of 39.2% were ahead of guidance, but GAAP earnings remained negative at -$0.82 billion (EPS -$0.19). The quarter benefited from stronger Xeon demand and favorable mix (Raptor Lake) relative to expectations, while profitability was constrained by the transition to newer process technologies and ongoing restructuring. Management communicated a wide-reaching turnaround plan aimed at simplifying the organization, reducing OpEx to $17 billion in 2025 and $16 billion in 2026, and cutting gross CapEx to $18 billion this year. The plan also emphasizes a renewed AI-centric product roadmap, stronger Foundry customer trust, and deleveraging the balance sheet, with a 51% Altera stake sale to Silver Lake expected to close in H2 2025 and lead to deconsolidation of Altera.

Looking ahead, Intel guided to a broader range for Q2 revenue ($11.2–$12.4 billion) with gross margin around 36.5%, reflecting mix effects, 18A ramp costs, and tariff-related uncertainty. Full-year guidance remains cautious amid macroeconomic headwinds and tariff risk, but the company signaled ongoing investment in high-potential AI workloads and a focus on internal Foundry ramp (Pentelic) and ecosystem alignment. The trajectory suggests a multi-year path to stabilization and margin recovery contingent on tariff resolution, successful execution of the Panther Lake/18A program, and progress in Foundry customer trust and external demand.