Intel (INTC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $12.7B, flat year-over-year, with gross margin and EPS exceeding guidance; GAAP net loss attributable to Intel was $821M, or $(0.19) per share, while non-GAAP EPS was $0.13.

• New CEO is driving cultural and operational transformation, flattening leadership, streamlining operations, and empowering engineering teams.

• Strategic focus includes revitalizing core client and server businesses, refining AI strategy, and strengthening customer trust, especially in foundry.

• Cost reduction measures target OpEx of $17B for 2025 and $16B for 2026, and gross CapEx of $18B for 2025.

• Monetization of non-core assets underway, including sale of 51% of Altera for $4.4B in net cash proceeds and completion of NAND business divestiture.

Financial highlights

• Q1 2025 revenue was $12.7B, at the high end of guidance, driven by strong Xeon and Raptor Lake sales.

• Non-GAAP gross margin was 39.2%, about 3 points above guidance; GAAP gross margin was 36.9%.

• Q1 non-GAAP EPS was $0.13, with GAAP net loss of $821M; operating cash flow was $800M and adjusted free cash flow was negative $3.7B.

• Ended Q1 with $21B in cash, including $1.1B from CHIPS grants and $1.9B from NAND business sale.

• Employee headcount reduced to 102.6K from 125.2K YoY, reflecting restructuring and divestitures.

Outlook and guidance

• Q2 2025 revenue guidance is $11.2B–$12.4B, down 2–12% sequentially, with non-GAAP gross margin expected at 36.5% and break-even EPS.

• Full-year OpEx target is $17B, CapEx $18B, and net CapEx $8–$11B; 2026 OpEx targeted at $16B.

• Management expects continued cost reductions in R&D and MG&A for 2025 as restructuring actions are completed.

• Uncertainty remains regarding the timing of US government CHIPS Act incentive payments.