This article first appeared on GuruFocus.
Revenue: $13.7 billion, up 6% sequentially, above guidance.
Gross Margin: 40%, 4% points better than guidance.
Earnings Per Share (EPS): $0.23, versus guidance of breakeven EPS.
Operating Cash Flow: $2.5 billion.
Adjusted Free Cash Flow: $900 million.
Cash and Short-term Investments: $30.9 billion.
CCG Revenue: $8.5 billion, up 8% quarter over quarter.
CCAI Revenue: $4.1 billion, up 5% sequentially.
Intel Foundry Revenue: $4.2 billion, down 4% sequentially.
Operating Profit for Intel Products: $3.7 billion, 29% of revenue.
Q4 Revenue Guidance: $12.8 to $13.8 billion.
Q4 Gross Margin Guidance: Approximately 36.5%.
Q4 EPS Guidance: $0.08 on a non-GAAP basis.
2025 Gross Capital Investment: Approximately $18 billion.
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Release Date: October 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Intel Corp (NASDAQ:INTC) delivered a solid Q3 with revenue, gross margin, and earnings per share above guidance.
The company significantly improved its cash position and liquidity, receiving accelerated funding from the US government and investments from Nvidia and SoftBank Group.
Intel Corp (NASDAQ:INTC) is making tangible progress in improving execution, with a focus on right-sizing the company and optimizing talent and management levels.
The company is on track to launch its first Pentalic SKU by year-end, which will solidify its position in the notebook segment.
Intel Corp (NASDAQ:INTC) is advancing its AI strategy, with strong demand for its AI capabilities and a collaboration with Nvidia to create new AI products.
Negative Points
Intel Corp (NASDAQ:INTC) faces capacity constraints, especially on Intel 10 and Intel 7, limiting its ability to fully meet demand.
The company is experiencing supply shortages across its business, impacting its ability to meet customer demand.
Gross margins are under pressure due to the high cost of older processes and low yields on newer nodes like 18A.
Intel Corp (NASDAQ:INTC) is not adding significant 18A capacity next year, which could impact its ability to ramp up production.
The company acknowledges it has work to do to improve its competitive position and product cost structure, particularly in the data center segment.
Q & A Highlights
Q: Ross Seymour from Deutsche Bank asked about Intel’s increased confidence in their Foundry business and whether recent collaborations or technical merits are contributing to this optimism. A: Lip-Bu Tan, CEO, explained that collaborations, particularly with SoftBank, are enhancing AI infrastructure, which requires more Foundry capacity. He highlighted progress in Intel’s 18A and 14A processes and advanced packaging, which are building trust with customers and driving long-term growth.
Q: Joseph Moore from Morgan Stanley inquired about Intel’s approach to Foundry investments and customer commitments. A: Lip-Bu Tan emphasized the importance of building customer trust through yield improvement and reliability. He mentioned the Central Engineering Group’s role in aligning IP with customer needs and highlighted Intel’s existing assets and flexibility to meet demand without immediate large-scale investments.
Q: C.J. Muse from Cantor Fitzgerald asked about demand outpacing supply into 2026 and its impact on Q1 trends. A: David Zinsner, CFO, noted that both server and client segments are experiencing supply constraints. He mentioned that Q1 might see peak shortages due to limited inventory, but improvements are expected as the year progresses.
Q: Stacy Rasgon from Bernstein Research questioned Intel’s supply constraints and customer transition from older products to newer AI offerings. A: David Zinsner clarified that AI products are performing well, with significant unit shipments expected. He acknowledged the unexpected demand for older nodes and emphasized the ongoing Windows refresh cycle as a driver for current product demand.
Q: Ben Reitzes from Melius Research sought an update on Intel’s collaboration with Nvidia and its impact on AI strategy. A: Lip-Bu Tan highlighted the strategic partnership with Nvidia to integrate Intel’s CPU leadership with Nvidia’s AI capabilities, creating new product classes optimized for AI. David Zinsner added that this collaboration expands Intel’s total addressable market (TAM) without cannibalizing existing markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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