Intel (INTC) Q4 2025 earnings summary

Executive summary

• Achieved solid progress in 2025 by simplifying the organization, strengthening the balance sheet, and forging partnerships, with Q4 results exceeding expectations for revenue, gross margin, and EPS despite supply constraints and a 4% year-over-year revenue decline.

• AI-driven demand is expanding across all compute markets, including x86, GPU/ASIC, and U.S.-based foundry ambitions, positioning the company for sustainable growth.

• Strategic focus on x86 franchise, data center, AI accelerators, ASICs, and building a trusted U.S. foundry.

• Major product launches included the Intel Core Ultra Series 3, the first AI PC platform on Intel 18A process technology.

• Completed $5.0 billion sale of common stock to NVIDIA, strengthening the balance sheet.

Financial highlights

• Q4 2025 revenue was $13.7 billion, down 4% year-over-year but at the high end of guidance and $0.4 billion above the October outlook.

• Non-GAAP gross margin for Q4 was 37.9%, 1.4 points above outlook; GAAP gross margin was 36.1%.

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

• Full-year 2025 revenue was $52.9 billion, flat year-over-year.

• Adjusted free cash flow for Q4 2025 was $2.2 billion; full-year adjusted free cash flow was $2.2 billion.

Outlook and guidance

• Q1 2026 revenue guidance is $11.7–$12.7 billion, with a midpoint of $12.2 billion, reflecting acute internal supply constraints and a $0.5 billion year-over-year decline at the midpoint.

• Q1 2026 non-GAAP gross margin expected at 34.5%, down 4.7 points year-over-year; GAAP gross margin guidance is 32.3%.

• Q1 2026 non-GAAP EPS guidance is $0.00, down $0.13 year-over-year; GAAP EPS guidance is $(0.21).

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

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