Intel Reports Q4 Beat, But Issues Weak Q1 Guidance with Zero Non-GAAP EPS
Summary
Intel reported better-than-expected fourth-quarter 2025 financial results but provided significantly weaker guidance for the first quarter of 2026, including a forecast of zero non-GAAP earnings per share.
Key Events
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Q4 2025 Financial Results Exceed Expectations
Intel reported Q4 2025 revenue of $13.7 billion (down 4% year-over-year) and non-GAAP EPS of $0.15 (up 15% year-over-year), surpassing analyst estimates.
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Weak Q1 2026 Guidance Issued
The company provided a significantly lower outlook for Q1 2026, forecasting revenue of $11.7 billion to $12.7 billion and a non-GAAP EPS of $0.00.
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Supply Shortages Impacting Q1
Management indicated that available supply is expected to be at its lowest level in Q1, contributing to the weak guidance, with improvements anticipated in Q2 and beyond.
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New AI PC Platform Launched
Intel unveiled its Core Ultra Series 3 processor family, its first AI PC platform built on Intel 18A process technology, expected to power over 200 designs.
Analysis
Intel's Q4 2025 performance, with non-GAAP EPS of $0.15 and revenue of $13.7 billion, exceeded analyst expectations. However, the company's forward guidance for Q1 2026 is notably weak, projecting revenue between $11.7 billion and $12.7 billion and a non-GAAP EPS of $0.00. This substantial drop in profitability guidance, attributed partly to industry-wide supply shortages expected to be at their lowest in Q1, suggests significant near-term headwinds. Investors will likely focus on the challenging outlook and the company's ability to navigate supply constraints and improve profitability in subsequent quarters.
At the time of this filing, INTC was trading at $51.56 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $270.8B. The 52-week trading range was $17.67 to $54.60. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.