Intel Q1 Earnings: Revenue Beat, EPS Beat, Shares Tumble On Weak Guidance, Chipmaker Plans 'Swift Actions' To Drive Efficiency

Intel Corp INTC reported first-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q1 Earnings: Intel reported first-quarter revenue of $12.67 billion, beating analyst estimates of $12.3 billion, according to Benzinga Pro. The chipmaker reported first-quarter adjusted earnings of 13 cents per share, beating analyst estimates of one cent per share.

Total revenue growth in the first quarter was flat on a year-over-year basis. Here’s a breakdown of revenue by category.

• Client Computing Group: $7.6 billion, down 8% year-over-year

• Data Center and AI: $4.1 billion, up 8% year-over-year

• Total Intel Products: $11.8 billion, down 3% year-over-year

• Intel Foundry: $4.7 billion, up 7% year-over-year

• All Other: $900 million, up 47% year-over-year

Intel said it generated $800 million in cash from operations during the quarter. The company ended the period with approximately $8.95 billion in cash and cash equivalents.

“The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,” said Lip-Bu Tan, CEO of Intel.

“I am taking swift actions to drive better execution and operational efficiency while empowering our engineers to create great products. We are going back to basics by listening to our customers and making the changes needed to build the new Intel.”

Intel said it’s taking actions to become more efficient, including streamlining the organization, eliminating management layers and enabling faster decision-making. There was no specific figure regarding workforce reductions, but reports from earlier this week indicated that the company planned to cut 20% of employees.

Tan referenced previous workforce reductions in an inaugural letter to shareholders after he took the reins of Intel last month. The new CEO has been tasked with turning around Intel, which has lost ground to competitors in recent years, falling behind major players like Nvidia in the AI race.

Outlook: Intel said Thursday that it planned to cut 2025 operating expenses to $17 billion. The company also forecasted 2026 operating expenses of $16 billion.

Intel expects second-quarter revenue to be in the range of $11.2 billion to $12.4 billion versus estimates of $12.84 billion. The company anticipates a second-quarter earnings loss of 32 cents per share versus estimates for a loss of 16 cents per share.

The weak guidance appears to be weighing on shares after-hours.

Intel executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.

INTC Price Action: Intel shares were down 6.05% after-hours, trading at $20.34 at the time of publication Wednesday. The chip stock is now down about 39% over the past year, according to Benzinga Pro.

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Photo: Tupungato/Shutterstock.