Intel (INTC) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $13.7B, exceeding guidance but down 4% year-over-year, with strong AI-driven demand outpacing supply and notable product launches including the Core Ultra Series 3 on Intel 18A.

• Strengthened the balance sheet through asset monetization, strategic investments, and a $5B stock sale to NVIDIA.

• Enhanced organizational efficiency by reducing bureaucracy, recruiting new leadership, and fostering a customer-centric culture.

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

• Exited 2025 with a clear roadmap, improved liquidity, and ongoing commitment to operational excellence.

Financial highlights

• Q4 2025 revenue was $13.7B, at the high end of guidance but down 4.1% YoY; non-GAAP gross margin was 37.9%, 1.4 points above outlook; non-GAAP EPS was $0.15.

• 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.

• Full-year 2025 revenue was $52.9B, flat year-over-year; non-GAAP gross margin was 36.7%.

• Ended 2025 with $14.3B in cash and cash equivalents, and $37.4B in cash and short-term investments, aided by asset monetizations.

• Q4 net loss attributable to shareholders was $591M; full-year net loss was $267M.

Outlook and guidance

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

• Q1 2026 non-GAAP gross margin forecasted at 34.5%; GAAP gross margin at 32.3%; non-GAAP EPS guidance is $0.00; GAAP EPS guidance is $(0.21).

• Gross margin expected to improve as supply and yields increase through 2026; CapEx for 2026 expected flat to slightly down, weighted to first half.

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

• Supply expected to be at its lowest in Q1 2026, improving in Q2 and beyond.