Intel Corporation has released its first-quarter earnings report, beating analyst estimates on both the top and bottom lines. However, the company’s guidance for the current quarter was disappointing, and it announced plans to slash operational and capital expenses in 2025.
According to Intel, the company reported a net loss of $800 million in the first quarter, due to higher costs of sales and some write-downs. This compares to a net loss of $400 million in 2024.
Intel’s CEO, Lip-Bu Tan, stated that the company’s performance was a step in the right direction, but there are no quick fixes as they work to regain market share and drive sustainable growth. To achieve this, Intel plans to reduce operational and capital expenses by removing management layers and targeting $17 billion in operational expenses and $18 billion in capital expenses in 2025.
The company also announced that it expects revenue for the current quarter of $11.8 billion at the midpoint of the range, lower than the average analyst estimate of $12.82 billion. Intel’s data center group reported a significant increase in sales, up 8% from a year earlier, while its client computing group saw revenue fall 8% on an annual basis to $7.6 billion.
Intel’s foundry business also reported strong revenue, with most of the sales coming from Intel’s other divisions to manufacture chips. However, the company’s chip business for PCs is struggling, losing market share and failing to compete with Nvidia in the AI chip sector.
The stock fell in extended trading after the earnings report, which highlighted the challenges facing Intel under its new leadership.
Source: https://www.cnbc.com/2025/04/24/intel-intc-q1-2025-earnings-report.html