Results top expectations
Intel reported fourth-quarter earnings on Thursday that exceeded Wall Street expectations, though the company delivered softer-than-expected guidance for the current quarter.
Adjusted earnings per share came in at 15 cents, beating forecasts of 8 cents, while revenue reached $13.7 billion versus expectations of $13.4 billion, according to analyst estimates compiled by LSEG.
Despite the earnings beat, Intel shares fell as much as 7% in after-hours trading following the report.
Outlook disappoints investors
The chipmaker said it expects first-quarter revenue to range between $11.7 billion and $12.7 billion, with breakeven adjusted earnings per share. Analysts had expected earnings of 5 cents per share on revenue of $12.51 billion.
Intel reported a net loss of $600 million, or 12 cents per diluted share, compared with a net loss of $100 million, or 3 cents per share, in the same period a year earlier.
Foundry optimism and manufacturing progress
Investor expectations had risen sharply ahead of the report, with Intel shares up 147% over the past year on optimism that the company could secure a major anchor customer for its foundry business.
Chief executive Lip-Bu Tan said the company’s 18A manufacturing technology exceeded expectations in 2025, signaling readiness for volume production of products such as Intel’s Core Ultra Series 3 processors.
Intel said it is aggressively increasing 18A supply to meet strong customer demand.
AI-driven demand supports data center sales
Revenue from Intel’s Data Center and AI segment rose 9% year over year to $4.7 billion, supported by strong demand for server chips used in artificial intelligence infrastructure.
Client Computing Group revenue, which includes laptop processors, declined 7% year over year to $8.2 billion.
The company reported $4.5 billion in foundry revenue during the quarter, including internal chip production.
Strategic investments and capital plans
Intel confirmed that its $5 billion stock sale to Nvidia was completed during the quarter. The company has also attracted investment from the U.S. government and SoftBank during 2025.
Chief financial officer David Zinsner said customers for Intel’s next-generation 14A technology are expected to emerge in the second half of the year, with increased capital spending to follow.
