Intel on January 22 reported fourth-quarter 2025 revenue of $13.7 billion, exceeding its forecast, even as revenue fell 4% from a year earlier. The company also shipped its first products built on the Intel 18A manufacturing process.
On earnings, Intel reported non-GAAP profit of $0.15 per share, above its guidance of $0.08. On a GAAP basis, the company posted a loss of $0.12 per share for the quarter.
For the full year, Intel reported revenue of $52.9 billion, roughly flat year over year.
Intel CEO Lip-Bu Tan said shipping the first 18A chips was a major step forward. But Intel struggled to supply enough AI data-centre chips and predicted lower-than-expected revenue and profit, causing its stock to fall 13% in late trading.
“The introduction of our first products on Intel 18A—the most advanced process technology developed and manufactured in the United States—marks an important milestone,” Tan said. “We’re working aggressively to grow supply to meet strong customer demand.”
Intel confirmed it is now shipping revenue products built on Intel 18A, making it the first manufacturer to deliver gate-all-around transistors with backside power for commercial products. The process underpins the new Core Ultra Series 3 client processors, formerly known as Panther Lake.
However, the early ramp of 18A weighed on profitability. Intel Foundry reported an operating loss of $2.5 billion in the fourth quarter, $188 million worse sequentially, primarily driven by higher costs associated with scaling 18A production.
Tam said yields are improving but remain below internal targets. “I am disappointed that we are not able to fully meet the demand in our markets. My team and I are working tirelessly to drive efficiency and more output from our fabs, and while yields are in line with our internal plans, they are still below where I want them to be,” he added.
Intel products’ revenue totaled $12.9 billion in the quarter, up 2% sequentially. Data Centre and AI (DCAI) revenue rose 15% quarter over quarter to $4.7 billion, marking the fastest sequential growth in the segment in more than a decade, according to the company.
Intel said demand for traditional server CPUs remains strong as AI workloads increase the importance of CPUs for orchestration, inference, and data movement. Revenue growth was constrained by limited internal wafer supply.
Client Computing Group revenue was $8.2 billion, down 4% sequentially, even as AI PC units grew 16% year over year. Intel said it shipped three Core Ultra Series 3 SKUs in the quarter, ahead of its original plan to deliver one by year-end.
Intel Foundry revenue increased 6.4% sequentially to $4.5 billion, driven by a higher mix of EUV wafers, which accounted for more than 10% of wafer output in 2025, up from less than 1% in 2023.
External foundry revenue was $222 million, primarily from US government projects. Intel said it continues to engage with potential external customers on its upcoming 14A process, with supplier decisions expected to begin in the second half of 2026.
The company’s custom ASIC business grew more than 50% in 2025 and exited the year with an annualised revenue run rate above $1 billion, supported by demand tied to AI infrastructure buildouts.
Intel forecast first-quarter 2026 revenue of $11.7 billion to $12.7 billion, reflecting what it described as the most acute period of supply constraints.
For 2026, Intel said it expects supply conditions to improve each quarter, positive adjusted free cash flow, and operating expenses of about $16 billion. The company plans to retire $2.5 billion in debt maturities during the year.
