Intel headquarters in Santa Clara, California, United States, Wednesday, April 23, 2025. Intel Corp. should publish results figures on April 24.
David Paul Morris | Bloomberg | Getty images
Intel reported on Thursday the results of the first quarter which beat the estimates of analysts, while issuing disappointing advice and announcing plans to reduce operational and capital expenses during the coming year, the first under the PDG LIP-BU TAN. The action dropped 7% in prolonged exchanges.
Here is how the company did, in relation to the LSEG consensus estimates:
- EPS: 13 cents, adjusted vs 1 cent estimated
- Income: 12.67 billion dollars against 12.3 billion dollars estimated
Intel said it expects income for the current quarter of $ 11.8 billion in the middle of the range, less than the analyst’s average estimate of $ 12.82 billion. The company said that the profit would be distant, while analysts sought a profit of 6 cents per share.
Intel said its second quarter guidelines reflected a high uncertainty driven by the macro environment.
For the first quarter, Intel declared a net loss of $ 800 million, or 19 cents per share, due to higher sales costs and certain depreciations. This is compared to the net income of $ 2.7 billion, or 63 cents per share, last year.
This is the first report on the profits of the flea manufacturer from Tan over as CEO in March, after Pat Gelsinger resigned in December under pressure from the members of the board of directors and investors. Gelsinger’s mandate was underlined by the incapacity of the company to effectively compete with artificial intelligence and its efforts to move to the manufacture of semiconductors for other companies, including competitors.
Intel said Thursday that it planned to reduce operational and capital expenses, removing management layers, in order to become more effective. The company said it expected $ 17 billion in operating expenses this year, down compared to a previous objective of $ 17.5 billion, and that it would target $ 18 billion in capital expenditure in 2025, against a previous 20 billion dollar target.
Intel said he had not included restructuring costs in his advice. The finance manager David Zinsner Kristina Partsinevelvelos of CNBC said that the reduction in operating expenses included job cuts, in particular for managers, but that intel has not yet finalized a certain number of cuts.
“The first quarter was a step in the right direction, but there are no quick solutions while we are working to return to the path of market share and sustainable growth,” Tan said in a statement.
Intel investors hope that Tan can transform a business that loses market share in its basic processor activity and has no competitive AI chip for Nvidiawhich dominates the fast growing sector.
Tan has already started to shape his team last week, appointing Sachin Katti to be the director of technology and the company’s head of AI, leading the global plans for the strategy and the release of Intel products. He had previously directed the Intel networking division.
The Intel data center group said $ 4.1 billion in sales, which increased by 8% in annual shift. Intel said that it has merged its EDGE networking and understanding group, previously led by Katti, in its data center organization.
The other major company of the company, Chips For PCS, is reported as part of the Customer IT group, and it dropped 8% on an annual basis to $ 7.6 billion in sales.
Intel’s booming foundry activity said $ 4.7 billion in income, although most of these sales come from other Intel divisions to make its fleas.
