Summary
Intel Corporation's Q1 2025 filing reveals a slight decline in net revenue to $12.67 billion from $12.72 billion in the prior year's comparable quarter, primarily impacted by a decrease in the Client Computing Group (CCG) segment. This revenue dip was partially offset by growth in the Data Center and AI (DCAI) segment and a significant increase in the 'All Other' category, largely driven by Mobileye. The company reported a net loss attributable to Intel of $821 million, or $(0.19) per diluted share, a deterioration from a net loss of $381 million, or $(0.09) per diluted share, in Q1 2024. This loss reflects increased cost of sales, partly due to inventory reserves for Gaudi AI accelerators and higher server unit costs, as well as a substantial reduction in gross margin. Despite these challenges, Intel Foundry's revenue saw an increase, and the company continues to execute its restructuring plan, leading to lower operating expenses across several segments, particularly in R&D and MG&A. The company also highlighted progress in its strategic initiatives, including a significant investment in new manufacturing facilities and the pending sale of a majority stake in Altera.
Financial Highlights
51 data points| Revenue | $12.67B |
| Cost of Revenue | $8.00B |
| Gross Profit | $4.67B |
| R&D Expenses | $3.64B |
| SG&A Expenses | $1.18B |
| Operating Expenses | $12.97B |
| Operating Income | -$301.00M |
| Net Income | -$821.00M |
| EPS (Basic) | $-0.19 |
| EPS (Diluted) | $-0.19 |
| Shares Outstanding (Basic) | 4.34B |
| Shares Outstanding (Diluted) | 4.34B |
Key Highlights
- 1Net revenue slightly decreased year-over-year to $12.67 billion, primarily due to lower Client Computing Group (CCG) sales, though this was partially offset by growth in Data Center and AI (DCAI).
- 2Reported a net loss attributable to Intel of $821 million (loss per diluted share of $0.19), a decline from a net loss of $381 million (loss per diluted share of $0.09) in the prior year.
- 3Gross margin contracted significantly to 36.9% from 41.0% year-over-year, impacted by increased cost of sales, including inventory reserves for Gaudi AI accelerators.
- 4Operating expenses decreased across key segments (CCG, DCAI, Intel Foundry, All Other) due to the ongoing 2024 Restructuring Plan, including headcount reductions.
- 5Intel Foundry revenue increased by $311 million year-over-year, driven by higher intersegment revenue from advanced process nodes and back-end services.
- 6The company announced the signing of a transaction agreement to sell a 51% stake in Altera for $4.4 billion, expected to close in the second half of 2025.
- 7Cash flow from operating activities turned positive ($813 million) in Q1 2025, a significant improvement from a negative $1,223 million in Q1 2024, supported by favorable changes in working capital.