Intel Company’s headquarters in Santa Clara, California, April 23, 2025.
David Paul Morris | Bloomberg | Getty Pictures
Intel reported first-quarter outcomes on Thursday that beat analysts’ estimates, whereas issuing disappointing steering and saying plans to slash bills within the coming yr, the primary underneath CEO Lip-Bu Tan. The inventory fell in prolonged buying and selling.
Here 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 typical analyst estimate of $12.82 billion. The corporate mentioned earnings will probably be breakeven, whereas analysts had been on the lookout for revenue of 6 cents per share.
Intel mentioned its second-quarter steering mirrored elevated uncertainty pushed by the macro setting.
“The very fluid commerce insurance policies within the US and past, in addition to regulatory dangers, have elevated the possibility of an financial slowdown, with the likelihood of a recession rising,” Intel CFO David Zinsner mentioned on the earnings name with analysts.
For the primary quarter, Intel reported a web lack of $800 million, or 19 cents per share, because of increased prices of gross sales and a few writedowns. That compares with a web lack of $400 million, or 9 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 underneath strain from board members and buyers. Gelsinger’s tenure was highlighted by the corporate’s incapacity to successfully compete in synthetic intelligence and its efforts to maneuver into semiconductor manufacturing for different firms, together with rivals.
“The primary quarter was a step in the precise course, however there are not any fast fixes as we work to get again on a path to gaining market share and driving sustainable progress,” Tan mentioned in an announcement.
Intel mentioned it is planning to chop operational and capital bills, eradicating administration layers, so as to change 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 prices in its steering. Zinsner instructed CNBC’s Kristina Partsinevelos that the discount in working bills would come with job cuts, particularly for managers, however that Intel hasn’t but finalized quite a few cuts.
“There is no such thing as a means round the truth that these crucial modifications will cut back the scale of our workforce,” Tan mentioned in a memo to workers revealed on Intel’s web site. He mentioned that the cuts would start this quarter.
Intel buyers hope Tan can flip round an organization that is been shedding 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 group, final week naming networking chief Sachin Katti to be the chief know-how officer and head of AI, main Intel’s general AI technique and product launch plans. Tan mentioned in a memo on Thursday that Intel workers must work 4 days per week within the workplace by September.
Intel’s information heart group reported $4.1 billion in gross sales, was up 8% from a yr earlier. Intel mentioned it had merged its networking and edge computing group, beforehand led by Katti, into its information heart group.
The corporate’s different large enterprise, chips for PCs, is reported underneath the Shopper Computing Group. Income fell 8% on an annual foundation to $7.6 billion.
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.
