Why Intel Stock Is Crashing in After-Hours Trading

Core Viewpoint - Intel's stock is experiencing a significant decline in after-hours trading despite reporting strong Q4 2025 financial results, primarily due to a disappointing outlook for Q1 2026 [1][3]. Financial Performance - Intel reported Q4 2025 sales of $13.7 billion, exceeding analyst expectations of $13.39 billion [4]. - The company achieved an adjusted EPS of $0.15, surpassing the anticipated $0.08 [4]. Q1 2026 Outlook - For Q1 2026, Intel's management projects revenue between $11.7 billion and $12.7 billion, with an adjusted EPS of $0.00, which is below the analyst consensus of $12.55 billion in revenue and $0.05 EPS [3][4]. - CFO David Zinsner indicated that supply challenges in Q1 2026 are expected to improve in Q2 and beyond [5]. Market Reaction - Following the earnings report, Intel's shares fell by 6.7% from a closing price of $54.32 during regular trading [1]. - The current trading valuation of Intel is at 904 times trailing earnings, which is considered high for a well-established company [5].