Intel Corporation (NASDAQ:INTC) reported fourth-quarter 2025 revenue of $13.7 billion, down 4% year over year, while full-year revenue reached $52.9 billion, essentially flat versus 2024. Fourth-quarter GAAP EPS was a loss of $(0.12), compared with non-GAAP EPS of $0.15, which exceeded management’s prior outlook.
For the full year, Intel generated non-GAAP EPS of $0.42, an improvement from the prior year, alongside GAAP EPS of $(0.06).
Management characterized the quarter as a positive step forward, noting that demand—particularly for AI-related products—continued to outpace available supply during the period.
#Financial Performance Breakdown
On a non-GAAP basis, Intel reported fourth-quarter gross margin of 37.9%, down 4.2 percentage points year over year but approximately 140 basis points above guidance. GAAP gross margin was 36.1%, reflecting continued pressure from early-stage manufacturing ramps and product mix. Operating cash flow in the quarter totaled $4.3 billion, supporting liquidity as the company continued elevated capital spending.
For full-year 2025, non-GAAP gross margin improved modestly to 36.7%, up 70 basis points year over year, aided by reduced restructuring charges and operating expense discipline. Non-GAAP operating expenses declined 15% year over year to $16.5 billion, reflecting workforce reductions and organizational simplification.
Despite generating $9.7 billion in operating cash flow during the year, adjusted free cash flow remained negative at $(1.6) billion due to $17.7 billion in gross capital expenditures, partially offset by government incentives and strategic investments.
Intel ended the year with $37.4 billion in cash and short-term investments, bolstered by equity investments and asset monetization activities.
#Strategic and Operational Highlights
Operationally, Intel highlighted progress across its product and manufacturing roadmap. The company launched Intel Core Ultra Series 3, its first AI PC platform built on the Intel 18A process technology and manufactured in the United States. Management indicated the platform is expected to power more than 200 designs across consumer, enterprise, and edge devices.
In the Data Center and AI segment, fourth-quarter revenue rose 9% year over year to $4.7 billion, driven by strong demand for traditional server CPUs and AI infrastructure-related workloads. Intel also emphasized continued traction in custom ASICs and networking silicon supporting AI deployments.
Within Intel Foundry, revenue increased 4% year over year to $4.5 billion, reflecting higher EUV wafer mix and early external customer engagements. However, the segment continued to operate at a loss as Intel ramps advanced process nodes, including Intel 18A, and invests in future capacity.
#Management Commentary and Outlook
Looking ahead, management guided first-quarter 2026 revenue of $11.7 billion to $12.7 billion, citing internal supply constraints as buffer inventory has been depleted and manufacturing mix shifts toward server products. Intel expects first-quarter non-GAAP EPS of $0.00 and GAAP EPS of $(0.21).
Executives noted that supply availability is expected to be at its lowest point in Q1 before improving later in the year. Management reiterated confidence in long-term AI-driven demand trends and the strategic importance of the x86 ecosystem, while acknowledging that execution and yield improvement remain key priorities.
#Investor Takeaway and Risk Framing
Intel’s fourth-quarter results reflect improving execution and cost control against a backdrop of strong AI-driven demand and ongoing supply limitations. Progress on advanced process technology and product launches suggests strategic momentum, though near-term financial performance remains constrained by capital intensity and manufacturing ramps.
Management’s outlook underscores both the opportunity and the uncertainty inherent in a multi-year turnaround tied to AI infrastructure growth, execution discipline, and evolving market conditions.