Intel(US:INTC)2025-10-23 20:10Financial Performance - Q3 2025 revenue was $13.7 billion, up 3% year-over-year[6] - Gross margin improved to 38.2%, up 23.2 percentage points from Q3 2024[5] - Net income attributable to Intel was $4.1 billion, a 124% increase compared to a loss of $16.6 billion in Q3 2024[5] - Earnings per share (EPS) attributable to Intel was $0.90, up 123% from a loss of $3.88 in Q3 2024[5] - Net revenue for the three months ended September 27, 2025, was $13,653 million, an increase of 2.8% from $13,284 million in the same period last year[21] - Gross profit significantly improved to $5,218 million compared to $1,997 million in the prior year, reflecting a gross margin increase[21] - Operating income turned positive at $683 million, a substantial recovery from an operating loss of $9,057 million in the same quarter last year[21] - Net income attributable to Intel was $4,063 million, a significant turnaround from a net loss of $16,639 million in the prior year[21] - Earnings per share attributable to Intel were $0.90, compared to a loss per share of $3.88 in the same quarter last year[21] Forecast and Guidance - Intel forecasts Q4 2025 revenue between $12.8 billion and $13.8 billion, with expected EPS of $(0.14) and non-GAAP EPS of $0.08[10] - GAAP gross margin percentage for Q4 2025 is 34.5% with a non-GAAP gross margin percentage of 36.5%[42] - GAAP earnings per share attributable to Intel—diluted is $(0.14), while non-GAAP earnings per share is $0.08[42] - Full-Year 2026 GAAP operating expenses are projected to be $19.0 billion, with non-GAAP operating expenses at $16.0 billion[45] Operational Developments - The Client Computing Group (CCG) revenue was $8.5 billion, up 5% year-over-year[8] - Intel received $5.7 billion in funding from the U.S. Government during the quarter[9] - NVIDIA invested $5.0 billion in Intel common stock, reflecting confidence in Intel's role in semiconductor manufacturing[9] - Intel unveiled the architecture of its Intel® Core™ Ultra series 3 processors, marking advancements in technology[9] - Fab 52 in Arizona became fully operational, part of Intel's $100 billion investment to expand domestic operations[9] Asset and Equity Changes - Total current assets increased to $51,731 million from $47,324 million as of December 28, 2024, driven by higher cash and short-term investments[24] - Cash and cash equivalents at the end of the period rose to $11,141 million, up from $8,785 million a year ago[26] - Total assets increased to $204,514 million from $196,485 million as of December 28, 2024[24] - The total stockholders' equity increased to $116,730 million, up from $105,032 million at the end of the previous year[24] Employee and Cost Management - Employee count decreased to 88,400 from 124,100 a year ago, primarily due to the divestiture of the NAND memory business and the sale of Altera[22] - Non-GAAP gross profit for Q3 2025 was $5,456 million, compared to $2,393 million in Q3 2024, reflecting a significant increase[39] - Non-GAAP operating income for Q3 2025 was $1,524 million, while Q3 2024 reported a loss of $2,369 million, indicating a turnaround in performance[39] - Non-GAAP net income attributable to Intel for Q3 2025 was $1,023 million, compared to a loss of $1,976 million in Q3 2024, showcasing improved profitability[39] - Adjusted free cash flow for Q3 2025 was $896 million, a recovery from a negative $2,702 million in Q3 2024, indicating better cash management[40] Cost Adjustments and Tax Rates - The non-GAAP tax rate for 2025 is projected at 12%, down from 13% in 2024, reflecting changes in tax strategy and operations[39] - GAAP gross margin percentage improved to 38.2% in Q3 2025 from 15.0% in Q3 2024, highlighting enhanced operational efficiency[39] - GAAP operating margin for Q3 2025 was 5.0%, a significant recovery from a loss margin of 68.2% in Q3 2024[39] - The company reported acquisition-related adjustments of $101 million in Q3 2025, down from $224 million in Q3 2024, indicating reduced acquisition costs[39] - Share-based compensation expenses decreased to $137 million in Q3 2025 from $172 million in Q3 2024, reflecting tighter cost control[39] - Restructuring and other charges in Q3 2025 amounted to $175 million, significantly lower than $5,622 million in Q3 2024, indicating successful restructuring efforts[39] - The non-GAAP tax rate is estimated at 12%, contrasting with a GAAP tax rate of 476%[42] - Acquisition-related adjustments contribute 0.8% to the GAAP gross margin[42] - Share-based compensation impacts the GAAP earnings per share by $0.11[42] - The company anticipates restructuring and other charges to have minimal impact on non-GAAP operating expenses[45] - Income tax effects are projected to be $(464)% for GAAP measures[42] - The adjustments attributable to non-controlling interest are $(0.01) for earnings per share[42] - The outlook for non-GAAP gross margin and earnings per share is based on the mid-point of the revenue range[42]