- Q4 Revenue: $14.3 billion, up 7% sequentially.
- Q4 Non-GAAP Gross Margin: 42.1%, 260 basis points ahead of guidance.
- Q4 Earnings Per Share (EPS): $0.13, versus guidance of $0.12.
- Q4 Operating Cash Flow: $3.2 billion.
- Q4 Adjusted Free Cash Flow: Negative $1.5 billion.
- Full Year 2024 Revenue: $53.1 billion, down 2.1% year over year.
- Full Year 2024 Gross Margin: 36%, down 760 basis points.
- Full Year 2024 EPS: Minus $0.13.
- Full Year 2024 Cash from Operations: $8.3 billion.
- Full Year 2024 Adjusted Free Cash Flow: Minus $2.2 billion.
- Q1 2025 Revenue Guidance: $11.7 billion to $12.7 billion.
- Q1 2025 Gross Margin Guidance: Approximately 36%.
- Q1 2025 EPS Guidance: Breakeven on a non-GAAP basis.
- Intel Foundry Q4 Revenue: $4.5 billion, up 3% sequentially.
- Intel Foundry Q4 Operating Loss: $2.3 billion.
- Mobileye Q4 Revenue: $490 million, up 1% sequentially.
- Altera Q4 Revenue: $429 million, up 4% sequentially.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intel Corp (INTC, Financial) delivered revenue, gross margin, and EPS above guidance for Q4 2024.
- The company achieved key grant-related milestones, supporting solid upside to gross margins.
- Intel Corp (INTC) remains a market leader in AI PC CPUs, with plans to ship over 100 million systems by the end of 2025.
- The launch of Panther Lake on Intel 18A is on track for the second half of 2025, showcasing progress in performance and yield.
- Intel Foundry has made good progress with Intel 18A, showing competitive offerings and a healthy RFQ pipeline of potential customers.
Negative Points
- Intel Corp (INTC) faces increased competition in the AI PC category, impacting market dynamics.
- The company is not yet participating meaningfully in the cloud-based AI data center market.
- Intel Foundry reported a significant operating loss of over $13 billion in 2024, with negative gross margins.
- Q1 2025 guidance indicates a sequential revenue decline of 11% to 18%, reflecting macro uncertainty and seasonality.
- Intel Products' gross margins are expected to be under pressure throughout 2025 due to product mix and cost structure.
Q & A Highlights
Q: Can you talk about how much you think Granite Rapids is closing the gap in the DCAI side of things and any updates on Clearwater Forest?
A: Michelle Johnston Holthaus, Interim Co-CEO, explained that Granite Rapids is a good first step in closing the gap with competitors, and customers are excited about it. Clearwater Forest is seen as a niche market product, expected to come to market in the first half of 2026. The focus is on consistent execution over the next 1 to 2 years to improve competitiveness.
Q: Can you walk us through the gross margin sequentially in the first quarter and the headwinds and tailwinds for 2025?
A: David Zinsner, Interim Co-CEO and CFO, noted that the revenue decline is the biggest contributor to lower gross margins in Q1. Intel Products' margins will be under pressure due to higher costs, particularly with Lunar Lake. Improvements are expected later in the year with Panther Lake and increased EUV wafer mix in Intel Foundry.
Q: Why are all three product segments down equally in the next quarter?
A: David Zinsner explained that macro uncertainty and typical seasonality are affecting all markets, leading to a cautious outlook across all segments.
Q: How has your strategy evolved for Intel Foundry Services (IFS) under new co-leadership?
A: David Zinsner emphasized a more conservative approach, focusing on not spending ahead of success and being cautious with capital deployment. The goal remains to build a world-class foundry, aligning with US government interests.
Q: What was behind the tempering of expectations for Falcon Shores, and what does it take to get competitive in that space?
A: Michelle Johnston Holthaus stated that the decision was based on competitive and execution perspectives. The focus is on delivering a complete rack-scale solution with Jaguar Shores, leveraging learnings from Gaudi, and addressing customer needs for a full-scale solution.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
