Intel Corporation reported fourth-quarter and full-year 2025 financial results, highlighting a solid performance amid ongoing challenges in the semiconductor industry. CEO Lip-Bu Tan emphasized the company’s growing confidence in the enduring importance of CPUs in the AI era, noting progress in executing Intel’s transformation strategy. The company successfully launched its first products on the Intel 18A process technology—its most advanced manufacturing node developed and produced in the United States—marking a key milestone in its efforts to regain technological leadership. Despite a 4% decline in fourth-quarter revenue to $13.7 billion compared to $14.3 billion in the same period last year, Intel exceeded expectations on gross margin and earnings per share. The company reported a GAAP gross margin of 36.1%, down 3.1 percentage points year-over-year, and a non-GAAP gross margin of 37.9%, down 4.2 percentage points. However, operating margin improved to 4.2% on a GAAP basis, up from 2.9% in Q4 2024, reflecting cost discipline and operational improvements. Full-year 2025 revenue came in at $52.9 billion, flat compared to 2024, while the company achieved a 2.1 percentage point improvement in GAAP gross margin to 34.8%. Operating loss narrowed significantly from 22.0% to 4.2%, driven by reduced R&D and MG&A expenses, which declined 14% and 15% respectively year-over-year. The company generated $9.7 billion in cash from operations for the full year. Intel’s business segments showed mixed performance. Client Computing Group (CCG) revenue declined 7% year-over-year to $8.2 billion, while Data Center and AI (DCAI) revenue rose 9% to $4.7 billion, reflecting strong demand for AI infrastructure. Intel Foundry revenue increased 4% to $4.5 billion, supported by growing external demand and progress in high-volume manufacturing of Intel 18A chips in Arizona and Oregon. The company unveiled the Intel Core Ultra Series 3 processor family, its first AI PC platform built on the Intel 18A process, designed and manufactured in the U.S. The platform is expected to power over 200 device designs from major OEMs, spanning laptops, gaming handhelds, robotics, and industrial edge devices. Intel also announced a collaboration with Cisco on an integrated platform for distributed AI workloads, powered by Intel Xeon 6 system-on-chip technology. The partnership aims to bring real-time AI inferencing and agentic workloads closer to data sources at the edge. Additionally, Intel centralized its Data Center and AI businesses under Kevork Kechichian to improve coordination across CPUs, GPUs, and platform strategy. Intel strengthened its leadership team with new appointments, including Cindy Stoddard as Chief Information Officer, Robin Colwell as Senior Vice President of Government Affairs, and Annie Shea Weckesser as Chief Marketing and Communications Officer. Craig H. Barratt, Ph.D., was also named an independent director on the board. The company completed the sale of $5 billion in Intel common stock to NVIDIA, enhancing its balance sheet and strategic flexibility. Looking ahead, Intel provided Q1 2026 guidance with expected revenue between $11.7 billion and $12.7 billion, a GAAP gross margin of 32.3%, and a non-GAAP gross margin of 34.5%. The company expects its tax rate to be around 11% on a non-GAAP basis, with non-GAAP earnings per share of $0.00. GAAP EPS is projected to be $(0.21). Intel cautioned that supply availability will be at its lowest level in Q1 before improving in Q2, but demand fundamentals across core markets remain strong. The company reaffirmed its commitment to sharpening execution, reinvigorating engineering excellence, and fully capitalizing on the AI opportunity across all its businesses.