Intel Posts $10.3B Foundry Loss, Guides Q1 Revenue of $11.7B–$12.7B
Intel reported $10.3B in foundry losses for 2025 and a $2.51B Q4 foundry loss while its Client Computing revenue fell 7% year-over-year in Q4. It guided Q1 revenue of $11.7B–$12.7B with a GAAP loss of $0.21 and trades at 85× expected earnings.
1. Accelerating Foundry Losses
Intel's foundry operations recorded a $2.51 billion operating loss in Q4 and cumulative 2025 losses of $10.3 billion, underscoring persistent execution challenges. CEO commentary indicates yield targets remain unmet, reinforcing concern over the division's path to breakeven.
2. Client Computing Contraction
The Client Computing Group, responsible for roughly 60% of revenue, declined 7% year-over-year in Q4 and has fallen in three of four 2025 quarters. Competitor AMD grew its client segment by 34% in Q4, signaling market share erosion for Intel.
3. Guidance and Valuation Concerns
For Q1, Intel forecast revenue between $11.7 billion and $12.7 billion, with non-GAAP EPS of $0.00 and a GAAP loss of $0.21, marking a sequential revenue decline from Q4’s $13.67 billion. The stock trades at 85× expected earnings despite a full-year net loss, and insiders sold shares near current levels, suggesting valuation skepticism.