Intel reported first-quarter 2025 revenue of $12.7 billion, unchanged from a year ago, as gains in its Data Center and AI (DCAI) and Foundry segments were offset by declines in its Client Computing Group (CCG). The company posted a GAAP net loss of $0.8 billion, or $(0.19) per share, while non-GAAP EPS came in at $0.13. CEO Lip-Bu Tan emphasized the need for “swift actions” to regain market share, announcing a new initiative to cut expenses, streamline management layers, and empower engineering teams.
Data Center and AI revenue grew 8% year-over-year to $4.1 billion, supported by the launch of new Intel® Xeon® 6 processors and strong AI benchmark performance in MLPerf Inference v5.0. Foundry services also saw 7% growth, with Intel 18A expected to ramp in H2 2025 to support the Panther Lake platform. Meanwhile, CCG revenue declined 8% to $7.6 billion, reflecting continued PC market softness. The company’s gross margin declined 410 basis points to 36.9% GAAP, and 590 bps to 39.2% non-GAAP.
Intel lowered its 2025 gross capex target to $18 billion, down from $20 billion, while keeping net capex guidance at $8–$11 billion. Operating expense targets were also cut to $17 billion for 2025 and $16 billion for 2026. Looking ahead, Intel guided Q2 revenue between $11.2 billion and $12.4 billion, with flat non-GAAP EPS and a GAAP loss of $(0.32) per share. The company is also pursuing strategic divestitures, including the announced sale of a 51% stake in its Altera business to Silver Lake.
- Q1 2025 Total Revenue: $12.7 billion (flat YoY)
- GAAP EPS: $(0.19); Non-GAAP EPS: $0.13
- Net loss (GAAP): $0.8 billion
- Gross margin: 36.9% GAAP (-410 bps); 39.2% non-GAAP (-590 bps)
- Operating margin: -2.4% GAAP; 5.4% non-GAAP
- Operating cash flow: $0.8 billion
- OpEx (non-GAAP): $4.3 billion (down 15% YoY)
- Capex Outlook 2025: $18B gross; $8–11B net
- OpEx Outlook: $17B in 2025, $16B in 2026
- Q2 2025 Guidance:
- Revenue: $11.2–$12.4 billion
- EPS: $(0.32) GAAP; $0.00 non-GAAP
- Gross margin: 34.3% GAAP; 36.5% non-GAAP
Business Unit Highlights:
- Client Computing Group (CCG): $7.6B revenue (down 8%)
- Data Center & AI (DCAI): $4.1B revenue (up 8%)
- Intel Foundry: $4.7B revenue (up 7%)
- Altera divestiture: 51% sold to Silver Lake; Intel retains 49%
- AI Performance: Xeon 6 shows 1.9x boost in MLPerf benchmarks
“There are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,” said Intel CEO Lip-Bu Tan. “We are going back to basics by listening to our customers and making the changes needed to build the new Intel.”
