Intel reported flat revenue and an increased net loss last quarter, as the company aims to return to profitability under a new CEO.
The company’s revenue last quarter was US$12.7 billion, similar to 2024’s Q1 revenue and above their LSEG estimates of $12.3 billion. However, Intel forecast a drop in revenue in the year’s second quarter.
“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 recently-appointed Intel CEO Lip-Bu Tan.
“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.”
Its GAAP diluted loss per share was US$0.19 last quarter, compared with a loss of $0.09 in 2024’s first quarter. Intel posted a GAAP net loss of $800 million, greater than Q1 2024’s net loss of $400 million.
Revenue fell by 8% to US$7.6 billion in its Client Computing Group division, while its Data Center and AI segment saw revenue increase by 8%. Its total Intel Products revenue was $11.8 billion, a decrease of 3% year-on-year.
Intel’s Foundry revenue grew by 7% year-over-year to US$4.7 billion.
The company’s guidance projects revenue of US$11.2-12.4 billion in Q2, partly due to economic uncertainty driven by the United States’ tariff policies. In 2024’s second quarter, Intel’s revenue was $12.8 billion.
The company also said it would begin restructuring the organisation this year, laying off parts of its workforce and reducing its non-GAAP operating expense goal for 2025 by US$500 million.
Tan took over as CEO in March, telling employees that “Intel will be an engineering-focused company” under his leadership. The company had seen revenue fall for three consecutive quarters, with previous CEO Pat Gelsinger struggling to capitalise on the growing demand for artificial intelligence equipment.
The company’s shares fell more than 8% on Friday following the news.
Intel’s (NASDAQ: INTC) share price closed at US$20.05, down from its previous close at $21.49. Its market capitalisation is $87.4 billion.
