Intel Corporation has reported stagnant revenue for the first quarter of 2025, leading the global chipmaker to unveil a significant cost-reduction strategy aimed at improving operational performance and driving future growth.
In its Q1 earnings report released Thursday night, Intel posted revenue of $12.7 billion (approximately N20.44 trillion), the same figure recorded in the corresponding quarter of 2024. The company reported a net loss per share of $(0.19), while non-GAAP earnings per share came in at $0.13.
Reacting to the flat figures, Intel’s Chief Executive Officer, Lip-Bu Tan, acknowledged the need for urgent improvement.
“The first quarter was a modest step forward, but we recognise the road ahead requires deep operational changes,” Tan said. “We’re returning to core principles—prioritising innovation, execution, and customer responsiveness—to rebuild Intel for long-term success.”
Intel is forecasting Q2 revenue between $11.2 billion and $12.4 billion, with a projected loss per share of $(0.32) and breakeven non-GAAP earnings.
Chief Financial Officer David Zinsner pointed to global economic uncertainties as a factor influencing the company’s cautious outlook. He said Intel is adopting a disciplined approach to spending, ensuring continued investment in critical areas while aggressively managing costs.
As part of its response to market pressures, Intel announced a $17.5 billion expense reduction target for 2025, aiming to cut costs further to $16 billion by 2026. These cuts will impact research and development, sales and marketing, and general administrative operations.
The company is also trimming its capital expenditure, lowering its 2025 gross capital outlay from $20 billion to $18 billion. Net capital spending is expected to range between $8 billion and $11 billion.
In a significant organisational move, Intel has integrated its Network and Edge Group into its Client Computing, Data Centre, and AI divisions. This change is reflected in a new financial reporting structure for 2025, with historical data restated for comparison.
Performance across Intel’s business units was mixed. Revenue from the Client Computing Group dropped 8% year-on-year to $7.6 billion. However, the Data Centre and AI Group reported an 8% revenue rise to $4.1 billion, while Intel Foundry saw a 7% increase to $4.7 billion.
Intel also highlighted several product milestones in the quarter, including the launch of its Intel Core Ultra processors and the debut of Intel Xeon 6 processors designed for advanced data centre and networking functions. The Xeon 6 lineup delivered strong results in MLPerf AI benchmark tests, reinforcing Intel’s ambitions in the artificial intelligence space.
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