Business
Intel Posts Flat Q1 Revenue, Rolls Out $17.5bn Cost-Cutting Plan
Intel Corporation has reported flat revenue for the first quarter of 2025, prompting the tech giant to unveil a sweeping $17.5 billion cost-cutting initiative aimed at streamlining operations and setting the stage for sustainable growth.
According to its Q1 financial report released Thursday night, Intel posted revenue of $12.7 billion (N20.44 trillion), mirroring the figure from the same period in 2024. The company recorded a net loss per share of $(0.19), while non-GAAP earnings per share stood at $0.13.
Intel CEO Lip-Bu Tan described the results as a “step in the right direction,” but admitted that the company still faces challenges in regaining market share and achieving long-term profitability.
“There are no quick fixes,” Tan said. “We’re taking decisive action to improve execution, empower our engineers, and get back to building the kind of innovative products our customers expect. The focus is now on basics—listening to customers and making strategic changes.”
Looking ahead, Intel projects second-quarter revenue between $11.2 billion and $12.4 billion, with an expected GAAP loss per share of $(0.32) and flat non-GAAP earnings.
Chief Financial Officer David Zinsner noted that macroeconomic uncertainties are affecting the company’s outlook, prompting Intel to adopt a more conservative financial approach.
“We’re investing in our core products and foundry operations while being highly disciplined in cost management,” Zinsner said. “This includes aligning spending with revenue and increasing capital efficiency.”
As part of its broader strategy, Intel plans to reduce operating expenses to about $17.5 billion in 2025 and further down to $16 billion by 2026. These cuts will target areas such as research and development, marketing, and administrative costs.
The company also trimmed its capital expenditure plans for 2025, lowering gross capex to $18 billion from a previous target of $20 billion. Net capital expenditures are now projected to fall between $8 billion and $11 billion.
Additionally, Intel announced an internal restructuring that will integrate the Network and Edge Group into its Client Computing, Data Centre, and AI divisions. This realignment has been reflected in the updated financial reporting for fiscal year 2025, with prior figures adjusted accordingly.
On the business unit front, Intel’s Client Computing Group reported a revenue drop of 8% year-over-year, generating $7.6 billion. In contrast, the Data Centre and AI Group saw an 8% uptick to $4.1 billion, while Intel Foundry posted a 7% revenue increase to $4.7 billion.
The company also highlighted the launch of several new products, including the Intel Core Ultra mobile and desktop processors, as well as Intel Xeon 6 processors designed for data centre and network performance. The Xeon 6 series also demonstrated strong AI capabilities in the MLPerf performance benchmarks.