Intel's first-quarter revenue was $12.7 billion, and its net loss expanded by 115% year-on-year

Recently, Intel announced the company's first-quarter financial report for fiscal year 2025. The report shows that Intel's first-quarter revenue was $12.7 billion, the same as $12.7 billion in the same period last year; the net loss attributable to Intel was $800 million, an increase of 115% compared with the net loss attributable to Intel in the same period last year of $400 million; the adjusted net profit attributable to Intel not in accordance with US generally accepted accounting principles was $600 million, a decrease of 24% compared with $800 million in the same period last year.

Intel's first-quarter revenue and adjusted earnings per share exceeded Wall Street analysts' expectations, but the outlook for second-quarter revenue and adjusted earnings per share failed to meet expectations.

Affected by this, after the financial report was released, Intel's stock price fell sharply by more than 5% in after-hours trading in the US stock market.

Main performance:

In the quarter ended March 29, Intel's attributable net loss was $800 million, an increase of 115% compared with the attributable net loss of $400 million in the same period last year; the attributable diluted loss per share was $0.19, an increase of 111% compared with the attributable diluted loss per share of $0.09 in the same period last year.

Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's adjusted attributable net profit in the first fiscal quarter was $600 million, a decrease of 24% compared with $800 million in the same period last year; the adjusted attributable diluted earnings per share was $0.13, a decrease of 28% compared with $0.18 in the same period last year.

Intel's revenue in the first fiscal quarter was $12.7 billion, the same as $12.7 billion in the same period last year.

Intel's adjusted earnings per share and revenue in the first fiscal quarter were both better than Wall Street analysts' expectations. According to data provided by Yahoo Finance, 31 analysts had previously expected Intel's adjusted earnings per share to reach $0 in the first fiscal quarter, and 31 analysts had previously expected Intel's revenue to reach $12.31 billion in the first fiscal quarter.

Intel's operating loss in the first fiscal quarter was $301 million, narrowing from an operating loss of $1.069 billion in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's adjusted operating profit in the first fiscal quarter was $690 million, down from $723 million in the same period last year.

Intel's operating profit margin in the first fiscal quarter was -2.4%, up 6 percentage points from -8.4% in the same period last year. Excluding certain one-time items (not in accordance with US generally accepted accounting principles), Intel's adjusted operating profit margin in the first fiscal quarter was 5.4%, down 0.3 percentage points from 5.7% in the same period last year.

Intel's gross profit in the first fiscal quarter was $4.672 billion, down from $5.217 billion in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel's adjusted gross profit in the first fiscal quarter was US$4.961 billion, which was also down from US$5.739 billion in the same period last year.

Intel's gross profit margin in the first fiscal quarter was 36.9%, down 4.1 percentage points from 41.0% in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel's adjusted gross profit margin in the first fiscal quarter was 39.2%, down 5.9 percentage points from 45.1% in the same period last year.

Intel's operating expenses (R&D, general and administrative expenses) in the first fiscal quarter were US$4.8 billion, down 19% from US$5.9 billion in the same period last year. Among them, R&D expenses were US$3.64 billion, down from US$4.382 billion in the same period last year; marketing, general and administrative expenses were US$1.177 billion, down from US$1.556 billion in the same period last year; restructuring expenses and other expenses were US$156 million, down from US$348 million in the same period last year. Excluding certain one-time items (not in accordance with US GAAP), Intel's adjusted operating expenses in the first fiscal quarter were US$4.3 billion, down 15% from US$5 billion in the same period last year.

Intel's tax rate in the first fiscal quarter was -51.4%, a significant decrease of 90.5 percentage points from 39.2% in the same period last year. Not in accordance with US GAAP, Intel's adjusted tax rate in the first fiscal quarter was 12.0%, down 1 percentage point from 13.0% in the same period last year.

Performance of each department:

According to the department, Intel's Client Computing Group's net revenue in the first fiscal quarter was US$7.629 billion, down 8% from US$8.273 billion in the same period last year; operating profit was US$2.361 billion, down from US$2.822 billion in the same period last year.

Intel's Data Center and Artificial Intelligence Group's revenue in the first fiscal quarter was US$4.126 billion, up 8% from US$3.828 billion in the same period last year; operating profit was US$575 million, up from US$417 million in the same period last year.

Intel's total product business revenue (the sum of the revenue of the above two businesses) in the first fiscal quarter was US$11.755 billion, down 3% from US$12.101 billion in the same period last year; the operating profit of the total product business was US$2.936 billion, down from US$3.229 billion in the same period last year.

Intel Foundry's revenue in the first fiscal quarter was US$4.667 billion, up 7% from US$4.356 billion in the same period last year; the operating loss was US$2.320 billion, narrowing from the operating loss of US$2.441 billion in the same period last year.

Intel's other business revenue was US$943 million, up 47% from US$643 million in the same period last year; the operating profit was US$103 million, while the operating loss in the same period last year was US$170 million.

Intel's intersegment eliminations in the first fiscal quarter were -US$4.698 billion, compared with -US$4.376 billion in the same period last year.

Performance Outlook:

Intel expects revenue in the second quarter of fiscal year 2025 to be between $11.2 billion and $12.4 billion. The average performance outlook is $11.8 billion, which is far below analysts' expectations. According to data provided by Yahoo Finance, 31 analysts previously expected Intel's revenue in the second quarter of fiscal year 2025 to reach $12.81 billion.

In terms of earnings outlook, Intel expects a diluted loss per share of $0.32 in the second quarter of fiscal year 2025; not in accordance with US generally accepted accounting principles, Intel expects adjusted diluted earnings per share in the second quarter of fiscal year 2025 to be $0.00, which is also lower than analysts' expectations. According to data provided by Yahoo Finance, 30 analysts previously expected Intel's earnings per share in the second quarter of fiscal year 2025 to reach $0.06.

In addition, Intel also expects the gross profit margin in the second quarter of fiscal year 2025 to be approximately 34.3%, and the adjusted gross profit margin not in accordance with US GAAP to be approximately 36.5%; the tax rate is approximately -51%, and the adjusted tax rate not in accordance with US GAAP is approximately 12%.

Stock price changes:

On the same day, Intel's stock price rose by $0.90 in regular trading on Nasdaq, closing at $21.49, an increase of 4.37%. In the subsequent after-hours trading as of 5:49 p.m. Eastern Time on Thursday, Intel's stock price fell sharply by $1.09 to $20.40, a drop of 5.07%. In the past 52 weeks, Intel's highest price was $37.16 and the lowest price was $17.67.