01—Abstract
Summary
Summary of the 10-Q filed April 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Intel Corporation's Q1 2025 filing reveals a slight decline in net revenue to $12.67 billiona 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 millionb, 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.
02—Key points
Key Highlights
- Net 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).
- Reported 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.
- Gross 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.
- Operating expenses decreased across key segments (CCG, DCAI, Intel Foundry, All Other) due to the ongoing 2024 Restructuring Plan, including headcount reductions.
- Intel Foundry revenue increased by $311 million year-over-year, driven by higher intersegment revenue from advanced process nodes and back-end services.
- The 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.
- Cash 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.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2025, Intel Corp lost $0.06.
- Revenue$12.67B100.0%
- Cost of revenue−$8.00B63.1%
- Gross profit$4.67B36.9%
- Operating costs−$4.97B39.3%
- Operating income−$301.0M2.4%
- Interest, other & tax−$520.0M4.1%
- Net income−$821.0M6.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 25, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $12.67B$12.72B | −0.4% |
| Cost of Revenue | $8.00B$7.51B | +6.5% |
| Gross Profit | $4.67B$5.22B | −10.4% |
| R&D Expenses | $3.64B$4.38B | −16.9% |
| SG&A Expenses | $1.18B$1.56B | −24.4% |
| Operating Expenses | $12.97B$6.29B | +106.3% |
| Operating Income | -$301.00M-$1.07B | +71.8% |
| Net Income | -$821.00M-$381.00M | −115.5% |
| EPS (Basic) | $-0.19$-0.09 | −111.1% |
| EPS (Diluted) | $-0.19$-0.09 | −111.1% |
| Shares Outstanding (Basic) | 4.34B4.24B | +2.4% |
| Shares Outstanding (Diluted) | 4.34B4.24B | +2.4% |
05—Questions
Frequently Asked Questions
What was Intel's financial performance in Q1 2025 compared to Q1 2024?
In Q1 2025, Intel reported net revenue of $12.67 billion, a slight decrease from $12.72 billion in Q1 2024. The company experienced a net loss attributable to Intel of $821 million, compared to a net loss of $381 million in the prior year's quarter. Gross margin also declined to 36.9% from 41.0%.
What are the main drivers behind the revenue changes in the different operating segments?
The overall revenue decrease was mainly due to an 8% decline in the Client Computing Group (CCG), attributed to lower client volumes and the absence of significant customer incentives offered in Q1 2024. This was partially offset by an 8% increase in Data Center and AI (DCAI) revenue, driven by higher demand from hyperscale customers and edge processing units. The 'All Other' segment saw a 47% increase, primarily due to strong performance from Mobileye.
How is Intel's restructuring plan impacting its financials?
Intel's 2024 Restructuring Plan, which includes headcount reductions and other cost-saving measures, is contributing to lower operating expenses across segments like CCG, DCAI, and R&D/MG&A. While contributing to cost efficiency, the plan's execution is ongoing and expected to be substantially complete by Q4 2025.
What significant strategic transactions are underway?
Intel has signed an agreement to sell a 51% stake in its Altera FPGA business to Silver Lake Partners for $4.4 billion, with the transaction anticipated to close in the second half of 2025. The company also recently completed the second phase of its NAND memory business divestiture, receiving $1.9 billion in proceeds.
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