The Intel headquarters in Santa Clara, California, US, on Wednesday, April 23, 2025. Intel Corp. is scheduled to launch earnings figures on April 24.
David Paul Morris | Bloomberg | Getty Pictures
Intel reported first-quarter outcomes on Thursday that beat analysts’ estimates, whereas issuing disappointing steerage and saying plans to slash operational and capital bills within the coming yr, the primary below CEO Lip-Bu Tan. The inventory fell 7% in prolonged buying and selling.
This is how the corporate did, versus LSEG consensus estimates:
- EPS: 13 cents, adjusted vs. 1 cent estimated
- Income: $12.67 billion vs. $12.3 billion estimated
Intel mentioned it expects income for the present quarter of $11.8 billion {dollars} on the midpoint of the vary, decrease than the common analyst estimate of $12.82 billion. The corporate mentioned earnings might be breakeven, whereas analysts have been searching for revenue of 6 cents per share.
Intel mentioned its second-quarter steerage mirrored elevated uncertainty pushed by the macro atmosphere.
For the primary quarter, Intel reported a web lack of $800 million, or 19 cents per share, attributable to increased prices of gross sales and a few writedowns. That compares with web revenue of $2.7 billion, or 63 cents per share, final yr.
It is the chipmaker’s first earnings report since Tan over as CEO in March, after Pat Gelsinger stepped down in December below stress from board members and traders. Gelsinger’s tenure was highlighted by the corporate’s lack of ability to successfully compete in synthetic intelligence and its efforts to maneuver into semiconductor manufacturing for different corporations, together with opponents.
“The primary quarter was a step in the correct course, however there aren’t any fast fixes as we work to get again on a path to gaining market share and driving sustainable development,” Tan mentioned in a press release.
Intel mentioned on Thursday that it was planning to chop operational and capital bills, eradicating administration layers, with the intention to develop into extra environment friendly. The corporate mentioned it anticipated $17 billion in operational bills this yr, down from a earlier goal of $17.5 billion, and that it could goal $18 billion in capital bills in 2025, down from a earlier goal of $20 billion.
Intel mentioned it hasn’t included restructuring costs in its steerage. Finance chief David Zinsner informed CNBC’s Kristina Partsinevelos that the discount in working bills would come with job cuts, particularly for managers, however that Intel has not but finalized a lot of cuts.
“There is no such thing as a method round the truth that these important adjustments will scale back the scale of our workforce,” Tan mentioned in a memo to workers that was revealed by Intel on its web site. He mentioned that the cuts would start this quarter.
Intel’s traders hope Tan can flip round an organization that is been dropping market share in its core processor enterprise, and does not have a aggressive AI chip to Nvidia, which dominates the fast-growing sector.
Tan has already began to form his workforce, final week naming networking chief Sachin Katti to be the corporate’s chief know-how officer and head of AI, main Intel’s general AI technique and product launch plans. Tan mentioned on Thursday in a memo that Intel workers must work 4 days per week within the workplace by September.
Intel’s knowledge middle group reported $4.1 billion in gross sales, which was up 8% year-over-year. Intel mentioned it had merged its networking and edge computing group, beforehand led by Katti, into its knowledge middle group.
The corporate’s different massive enterprise, chips for PCs, is reported below the Shopper Computing Group, and it fell 8% on an annual foundation to $7.6 billion in gross sales.
Intel’s burgeoning foundry enterprise reported $4.7 billion in income, though most of these gross sales come from Intel’s different divisions to fabricate its chips.