Intel (INTC) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue, gross margin, and EPS exceeded guidance, marking the fifth consecutive quarter of outperformance despite supply constraints and a 4% year-over-year revenue decline.

• Strengthened the balance sheet through asset monetization, strategic investments, and debt repayment, while simplifying the organization and recruiting new leadership.

• Positioned to capitalize on AI-driven semiconductor demand across data center, client, and edge markets, leveraging broad IP, advanced manufacturing, and U.S.-based foundry ambitions.

• Major product launches included Core Ultra Series 3 on Intel 18A, the first AI PC platform on this process, and progress in engineering excellence and customer-centric culture.

• Completed $5B investment from NVIDIA and monetized Mobileye and Altera, further strengthening liquidity.

Financial highlights

• Q4 2025 revenue was $13.7B, at the high end of guidance but down 4.1% YoY; full-year revenue was $52.9B, flat or slightly down YoY due to supply constraints.

• Q4 non-GAAP gross margin was 37.9%, 140 bps above guidance; GAAP gross margin was 36.1%.

• Q4 non-GAAP EPS was $0.15, beating guidance and up $0.02 YoY; GAAP EPS was $(0.12).

• Q4 operating cash flow was $4.3B; adjusted free cash flow for Q4 was $2.2B; full-year adjusted free cash flow was $2.2B.

• Ended 2025 with $37.4B in cash and short-term investments, aided by asset monetizations and strategic investments.

Outlook and guidance

• Q1 2026 revenue guidance is $11.7B–$12.7B, with midpoint $12.2B, reflecting lower seasonal demand and acute supply constraints.

• Q1 non-GAAP gross margin forecasted at 34.5%, with break-even EPS; GAAP EPS guidance is $(0.21).

• Full-year 2026 CapEx expected flat to slightly down, weighted to first half, supporting demand for 2027 and beyond.

• Positive adjusted free cash flow expected for 2026; all $2.5B of debt maturities to be retired.

• Factory network supply expected to improve from Q2 2026 onward.