Intel (INTC, Financial) released its first-quarter financial report for fiscal year 2025, revealing steady revenue of $12.7 billion, identical to the previous year. However, the company reported a net loss of $800 million, a significant increase from last year's $400 million loss. Adjusted net income fell to $600 million, a 24% decline from the previous year.
Despite surpassing Wall Street expectations for Q1 revenue and adjusted earnings per share, Intel's guidance for the second quarter fell short of analyst predictions, leading to a more than 5% drop in its stock price during after-hours trading.
Intel reported an operating loss of $301 million, down from $1.069 billion last year. Adjusted operating income was $690 million, a slight decrease from $723 million. The gross margin dropped to 36.9%, down 4.1 percentage points from the previous year.
The Client Computing Group saw an 8% revenue decline to $7.629 billion, while the Data Center and AI Group experienced an 8% increase to $4.126 billion. Intel Foundry Services posted a 7% revenue increase to $4.667 billion.
Looking ahead, Intel forecasts Q2 revenue between $11.2 billion and $12.4 billion, below analyst expectations. The company anticipates a Q2 loss of $0.32 per share, with adjusted earnings expected to be breakeven.
