Intel posts smaller loss than expected
Intel slips back into the red, but less severely than feared. The stock is still tumbling on the stock market.
(Image: Mark Mantel / heise medien)
Revenue at the upper end of its expectations, but a smaller net loss than feared: Intel delivers a passable annual financial statement within its capabilities. The company generated nearly 13.7 billion US dollars in revenue in the fourth quarter of 2025. That's four percent less than in the same period last year. The bottom line shows a net loss of 591 million dollars, about 14 percent less red ink than expected.
For the full year, Intel generated nearly 52.9 billion dollars, almost the same as in 2024. On paper, the annual loss decreases from 18.8 billion to 267 million dollars. However, the difference is only so large because Intel had to write off large sums in the billions in 2024. The operating annual result jumps from -11.7 billion to -2.2 million dollars because Intel is saving a total of over five billion dollars in research, development, marketing, and administration, and much less restructuring costs are being incurred. They decrease from nearly seven billion to 2.2 billion dollars. The operating annual cash flow improved from 8.3 billion to 9.7 billion dollars.
Operationally, there is even a surplus of 580 million dollars for the fourth quarter of 2025, a growth of 41 percent compared to the previous year's period. Before taxes, 338 million dollars remain; the 671 million dollars in taxes then push Intel into the red.
Chip manufacturing in the red by over 10 billion dollars
The problem child remains its chip manufacturing (Intel Foundry), which incurred a loss of 10.3 billion dollars over the full year. That's still three billion less in red ink than in 2024.
The deficit is so high since Intel considers the foundry an independent chip contract manufacturer, where the processor divisions have CPUs produced at industry-standard prices. So far, revenues are not sufficient to keep the division afloat sustainably.
However, there is a very first, albeit small, glimmer of hope: Intel Foundry apparently generated 170 million dollars in revenue from external customers in the fourth quarter of 2025. This corresponds to a share of 3.8 percent of the total revenue of 4.5 billion dollars. A year earlier, external revenue was 27 million dollars out of a good 4.3 billion dollars.
Intel does not comment on the Foundry's customer revenue, as is customary in the industry. Due to earlier announcements, it is conceivable that Amazon (AWS) or Microsoft are testing AI chips with Intel's manufacturing technology or having them produced in small batches.
Processors remain strong
Intel's undisputed workhorse remains the so-called Client Computing Group, centered around Core processors for notebooks and desktop PCs. It generated 32.2 billion dollars in revenue in 2025, a good three percent less than in 2024. It generates an operating profit of 9.3 billion dollars.
Intels Umsatz aufgeschlĂĽsselt (3 Bilder)
Intel
)Server products are far behind with 16.9 billion dollars in annual revenue. Despite the AI boom and the insane investments by hyperscalers in data centers, Intel's server division is only growing by just under five percent.
Intel still has no AI accelerators that are well-received by hyperscalers. CEO Lip-Bu Tan therefore says: “Our conviction that CPUs play an essential role in the AI era continues to grow.”
All other business areas generated nearly 3.6 billion dollars in revenue. This primarily includes the automotive division Mobileye and, until the third quarter, the FPGA manufacturer Altera, which Intel sold in multiple parts.
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Gloomy outlook disappoints stock market
In the current first quarter of 2026, Intel expects revenue of 11.7 billion to 12.7 billion dollars, which means stagnation at best compared to early 2025. The gross margin is expected to fall from the current 36.1 percent to only 32.3 percent. The net loss is expected to rise towards two billion dollars.
The latter point in particular is likely to have deterred the stock market: Intel's stock fell by about six percent in after-hours trading. However, the security is still performing better than in the previous two years.
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