Can Intel’s AI push offset weak PC demand as revenues stagnate, losses persist, and supply tightens into 2026, despite progress on 18A manufacturing?
Intel Corporation reported a mixed set of results for the fourth quarter and full year of 2025, reflecting steady demand for data centre and AI products but continued pressure in its core PC business.
Fourth-quarter revenue came in at $13.7 billion, down 4% year-on-year (YoY). Full-year revenue stood at $52.9 billion, broadly flat compared with 2024. The YoY comparisons were not adjusted for the deconsolidation of Altera, which was completed in the third quarter of 2025.
The company reported a GAAP loss per share of $0.12 for the fourth quarter. On a non-GAAP basis, earnings per share were $0.15. For the full year, Intel posted a GAAP loss per share of $0.06, while non-GAAP EPS reached $0.42.
Intel generated $4.3 billion in operating cash flow during the quarter and $9.7 billion for the full year, supported by cost reductions and improved operating margins.
Chief executive Lip-Bu Tan said confidence in the role of CPUs in the AI era was strengthening.
“The introduction of our first products on Intel 18A, the most advanced process technology developed and manufactured in the United States, marks an important milestone, and we are working aggressively to grow supply to meet strong customer demand,” he said.
Chief financial officer David Zinsner said Intel exceeded its internal expectations in the fourth quarter despite industry-wide supply constraints.
“We expect our available supply to be at its lowest level in Q1 before improving in Q2 (2026) and beyond. Demand fundamentals across our core markets remain healthy as the rapid adoption of AI reinforces the importance of the x86 ecosystem as the world’s most widely deployed high-performance compute architecture,” he said.
By business segment, the Client Computing Group generated $8.2 billion in Q4 revenue, down 7% year-on-year. The Data Center and AI unit posted $4.7 billion, up 9%, reflecting continued AI-led demand. Intel Foundry revenue rose 4% to $4.5 billion.
Looking ahead, Intel forecasts first-quarter 2026 revenue of $11.7 billion to $12.7 billion. It expects a GAAP loss per share of $0.21 and non-GAAP EPS to be breakeven.
The company said execution discipline and AI-driven growth remain its top priorities.
