Mirror Review
April 28th, 2025
Intel Q1 report shows a company holding steady on revenue while strategically adjusting for the future.
- According to the report, Intel’s revenue for Q1 stood at $12.7 billion, which is the same as the first quarter of the previous year.
- The company reported a GAAP loss per share of $(0.19), while the non-GAAP earnings per share were $0.13.
- Looking ahead, Intel expects revenue for the second quarter of 2025 to be between $11.2 billion and $12.4 billion, with a projected GAAP loss per share of $(0.32) and a non-GAAP EPS of $0.00.
Key Factors Influencing Intel Q1 Report Performance
Several factors contributed to Intel’s performance in the first quarter:
- Flat Overall Revenue: Despite some segment variations, total revenue remained consistent year-over-year.
- Mixed Segment Results: The Data Center and AI (DCAI) segment saw an 8% increase in revenue. This was driven by demand for processors in cloud infrastructure and AI workloads. Conversely, the Client Computing Group (CCG) experienced an 8% decline, attributed to factors like subdued PC demand and inventory adjustments. Moreover, Intel Foundry revenue increased by 7%, and the “All Other” category grew by a significant 47%.
- Improved Operational Efficiency Efforts: Intel is actively working on streamlining the organization, removing management layers, and enabling faster decision-making. These actions are part of a broader initiative to drive better execution and operational efficiency.
- Cost Reduction Targets: The company is reducing its non-GAAP operating expense target to approximately $17 billion in 2025 and targeting $16 billion in 2026. The gross capital expenditures are also being reduced to $18 billion for 2025.
- Restructuring Charges: Intel expects to incur restructuring charges associated with these efficiency initiatives, which can impact financial results. While the attached document doesn’t explicitly use the term “layoffs,” restructuring efforts often involve workforce reductions.
Recent Moves and Product Launches
Looking back at the past year or so, Intel has been busy with several important moves and product launches that are influencing their performance.
- At CES, they introduced a range of new mobile and desktop processors, like the Intel® Core™ Ultra 200V series and the expanded Intel® Core™ Ultra 200S series.
- In February, they launched new Intel® Xeon® 6 processors for data centers and network uses, designed for better performance and efficiency. Benchmarks in April showed that Intel Xeon 6 with Performance-cores had a nearly two times boost in AI performance compared to the previous generation.
- On the manufacturing side, Intel’s advanced 18A process technology is expected to be ready for production in the latter half of 2025, supporting the release of a new product called Panther Lake by the end of the year. More products using this technology are expected in the first half of 2026.
- Intel has also made some strategic business decisions. They announced a deal to sell a 51% share of their Altera business to Silver Lake, while keeping 49% ownership. This allows Intel to benefit from Altera’s future while focusing on its main areas.
- In March, they completed the sale of their NAND memory business.
What Executives Had To Say
“The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,” said Lip-Bu Tan, Intel CEO.
He added, “I am taking swift actions to drive better execution and operational efficiency while empowering our engineers to create great products. We are going back to basics by listening to our customers and making the changes needed to build the new Intel”.
David Zinsner, Intel CFO, commented, “It was a solid start to the year as we executed well on our priorities… The current macro environment is creating elevated uncertainty across the industry, which is reflected in our outlook. We are taking a disciplined and prudent approach to support continued investment in our core products and foundry businesses while maximizing operational cost savings and capital efficiency”.
Intel Layoffs Claims Addressed
Recently, Intel executives addressed reports of massive layoffs, with CFO David Zinsner stating that a Bloomberg report suggesting over 20,000 job cuts was inaccurate. The document indicates that the company has not yet finalized the exact number of positions to be eliminated.
Restructuring efforts will involve each department assessing its structure, with the possibility of voluntary buyouts being offered to some employees. However, not all requests for buyouts will be accepted.
Notably, Intel will not be offering early retirements in this round of restructuring, viewing previous instances as a misstep that led to a loss of valuable experience.
CEO Lip-Bu Tan’s internal letter acknowledged that the planned changes would reduce the workforce size but did not specify numbers. Layoffs are expected to begin in the second quarter and proceed over several months.
Conclusion
The 2025 Intel Q1 report and the steps they are taking show a company focused on improving its operations and making targeted investments. While the revenue was flat year-over-year, the efforts to increase efficiency and the introduction of new products, particularly in key areas like data centers which saw revenue growth, are notable. Moreover, the successful rollout of new process technologies like Intel 18A will be a significant factor in the coming months.
