Intel Tops Q4 Earnings Estimates Despite Lower Revenues on Supply Woes

Intel Corporation INTC reported modest fourth-quarter 2025 results, with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. Despite solid traction from an accelerated ramp-up of artificial intelligence (AI) PCs, supply chain shortages dragged the top line on a year-over-year basis. Intel has made significant strides in its cost-cutting plan to rebuild a sustainable growth engine. However, shares were significantly down in after-market trading on soft guidance for the first quarter.Net IncomeThe company reported a GAAP loss of $0.6 billion or a loss of 12 cents per share compared with a net loss of $0.1 billion or a loss of 3 cents per share in the year-ago quarter. The wider loss was primarily due to lower revenues owing to supply chain headwinds. Excluding non-recurring items, non-GAAP earnings in the reported quarter were $0.77 billion or 15 cents per share compared with $0.57 billion or 13 cents per share a year ago. The bottom line surpassed the Zacks Consensus Estimate by 7 cents. For 2025, Intel reported a GAAP loss of $0.3 billion or a loss of 6 cents per share compared with a net loss of $18.8 billion or a loss of $4.38 per share in 2024. Non-GAAP earnings for 2025 were $1.9 billion or 42 cents per share against a net loss of $0.6 billion or a loss of 13 cents per share a year ago.Intel Corporation Price, Consensus and EPS Surprise Intel Corporation price-consensus-eps-surprise-chart | Intel Corporation QuoteRevenuesGAAP revenues in the reported quarter were down 4.1% year over year to $13.67 billion. The quarterly revenues were near the higher end of the guided range and beat the consensus estimate of $13.37 billion. The company witnessed healthy growth momentum in the Intel 18A process node and Lunar Lake. Management envisions robust growth opportunities with a strong product roadmap and semiconductor ecosystem, likely setting it apart from the competition.For 2025, total revenues declined to $52.85 billion from $53.1 billion due to supply chain issues.Segment PerformanceClient Computing Group (CCG) revenues decreased to $8.19 billion from $8.77 billion, driven by a constrained supply despite solid data center demand. Intel witnessed healthy traction in AI PCs that have taken the market by storm. In the quarter, Intel previewed the Intel Core Ultra series 3 processor (code-named Panther Lake) and Xeon 6+ (code-named Clearwater Forest). Manufactured in a new, state-of-the-art factory in Chandler, AZ, both products are built on Intel 18A, the most advanced semiconductor process in the United States. Panther Lake is designed to power a broad spectrum of consumer and commercial AI PCs, gaming devices and edge solutions. Clearwater Forest is an E-core server processor that enables business enterprises to scale workloads, reduce energy costs and power more intelligent services. Datacenter and AI Group (DCAI) revenues improved to $4.74 billion from $4.35 billion, as solid demand for traditional servers and storage compute led by Xeon 6 processors (code-named Granite Rapids) was more than offset by supply constraints.While total Intel Products revenues were down to $12.93 billion from $13.12 billion, Intel Foundry revenues increased to $4.51 billion from $4.34 billion, owing to a higher EUV (Extreme Ultraviolet) wafer mix. All Other revenues, which include Altera, Mobileye and Other businesses, were $574 million.Other Operating DetailsNon-GAAP gross margin decreased to 37.9% from 42.1% a year ago, while non-GAAP operating margin was down from 9.6% to 8.8%. Margins were adversely impacted by lower revenues and high fixed costs due to increased 18A volumes and unfavorable product mix. The company has reduced its capital expenditures and is focusing on simplifying parts of its portfolio to unlock efficiencies and create value.Cash Flow & LiquidityAs of Dec. 27, 2025, Intel had cash and cash equivalents of $14.26 billion with $44.09 billion of long-term debt compared with respective tallies of $8.25 billion and $46.28 billion a year ago. In 2025, Intel generated $9.7 billion of cash from operating activities compared with $8.29 billion a year ago.OutlookFor the first quarter of 2026, Intel expects GAAP revenues to be within $11.7-$12.7 billion owing to depleted buffer inventory and a shift in wafer product mix toward servers. Non-GAAP gross margin is likely to be 34.5%. Non-GAAP earnings are expected to be at break-even on a per share basis.Zacks RankIntel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesArista Networks Inc. ANET is scheduled to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting a growth of 15.4% from the year-ago reported figure.Arista has a long-term earnings growth expectation of 20.1%. Arista delivered an average earnings surprise of 10.2% in the last four reported quarters.Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating a 5.4% growth from the year-ago reported figure.Akamai has a long-term earnings growth expectation of 6%. Akamai delivered an average earnings surprise of 10.5% in the last four reported quarters.Pinterest, Inc. PINS is set to release fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share, implying a growth of 19.6% from the year-ago reported figure.Pinterest has a long-term earnings growth expectation of 27.7%. Pinterest delivered an average negative earnings surprise of 6.8% in the last four reported quarters.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks