Intel, a multinational technology company has reported flat first quarter revenue, prompting the company to unveil a series of cost-cutting measures aimed at enhancing operational efficiency and driving sustainable growth.
Intel said this in its 2025 first quarter report released on Thursday night.
In the report, Intel announced first quarter revenue of $12.7 billion (N20.44 trn), unchanged from the same period last year.
The company reported a net loss per share of $(0.19), while non-GAAP (generally accepted accounting principles) earnings per share stood at 0.13.
In the report, Intel’s Chief Executive Officer, Mr Lip-Bu Tan, acknowledged the need for improvement.
The first quarter is 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,” Tan said.
He emphasised commitment to taking swift actions to drive better execution and operational efficiency, while empowering its engineers to create great products.
We are going back to the basics by listening to our customers and making the changes needed to build the new Intel,” he said.
Tan noted that looking ahead, the company was anticipating second-quarter revenue to be between $11.2 billion and $12.4 billion.
He added that the Intel report also expected a second-quarter loss per share of (0.32) and non-GAAP earnings per share of 0.00.
Commenting, Intel’s Chief Financial Officer, Mr David Zinsner, said that the uncertainty in the current macroeconomic environment also reflected in the company’s outlook.
Zinsner stated that Intel was taking a disciplined and prudent approach to support continued investment in its core products and foundry businesses while also maximising operational cost savings and capital efficiency.
According to the report, in response to the current market environment, Intel unveiled an initiative focused on enhancing execution and operational efficiency across its businesses.
The report said the company aimed at reducing its operating expenses to approximately $17.5 billion in 2025 and further to $16 billion in 2026.
It said the expenses included research and development, as well as marketing and administrative costs.
Intel is optimising its capital expenditure plans, targeting $18 billion in gross capital expenditures for 2025, down from the previous goal of $20 billion.
The company still anticipates net capital expenditures to be in the range of $8 billion to $11 billion,” the report stated.
The Q1 report also saw an organisational realignment, integrating the Network and Edge Group into the Client Computing Group, Data Centre and AI segments.
It said the change was reflected in the updated segment reporting for fiscal year 2025, with prior-period data adjusted accordingly.
Intel said in terms of business unit performance, the client computing group reported revenue of $7.6 billion, an 8 per cent decrease year-over-year.
It noted that the Data Centre and AI Group, however, saw an 8 per cent increase in revenue, reaching $4.1 billion.
Intel Foundry, the report stated, experienced a 7 per cent revenue growth, amounting to $4.7 billion.
The report added that key business highlights from the quarter included the launch of new Intel Core Ultra mobile and desktop processors, as well as the introduction of Intel Xeon six processors for data centre and network applications.
Intel also highlighted the strong AI performance of its Xeon six processors in MLPerf benchmarks.
