Intel(US:INTC)2026-01-23 02:15Summary of Intel's Earnings Call Company Overview - Company: Intel Corporation - Quarter: FY25Q4 Key Financial Metrics - Q4 Revenue: $13.7 billion, a year-over-year decline of 4%, exceeding Bloomberg consensus estimate of $13.4 billion [1] - Non-GAAP Gross Margin: 37.9%, higher than the company's previous guidance by approximately 140 basis points [1] - Non-GAAP Earnings Per Share: $0.15, surpassing the prior guidance of $0.08 and exceeding Bloomberg consensus estimate of $0.09 [1] Business Segment Performance - Product Business: - Q4 Revenue: $12.9 billion, a quarter-over-quarter increase of 2% [2] - Client Computing Group (CCG): Revenue of $8.2 billion, a quarter-over-quarter decline of 4%, impacted by supply constraints and product mix adjustments despite a 16% year-over-year growth in AIPC unit sales [2] - Data Center and AI (DCAI): Revenue of $4.7 billion, a quarter-over-quarter increase of 15%, exceeding Bloomberg consensus estimate of $4.4 billion, marking the fastest quarterly growth in nearly a decade [2] - Foundry Business: - Q4 Revenue: $4.51 billion, surpassing Bloomberg consensus estimate of $4.36 billion, driven by an increase in EUV wafer share [2] - External foundry revenue: $22 million [2] - Operating loss: $2.5 billion, primarily due to early ramp-up costs associated with Intel's 18A technology [2] Strategic Insights - CEO Commentary: The role of CPUs is increasingly critical in the AI era [3] - 14A Technology: Active engagement with potential customers, with decisions expected in the second half of the year [3] - Yield Rates: New process technology yield rates are in line with internal plans but still below CEO expectations [3] - Memory Chip Prices: Rising prices may negatively impact the personal computer market in 2026 [3] - Server Demand: Strong demand for traditional servers remains robust [3] Future Guidance - FY26Q1 Revenue Guidance: Expected to be between $11.7 billion and $12.7 billion, with a midpoint of $12.2 billion, below Bloomberg consensus estimate of $12.56 billion [4] - Non-GAAP Gross Margin: Approximately 34.5% [4] - Non-GAAP Earnings Per Share: Expected to be around breakeven [4] - Supply Constraints: FY26Q1 is anticipated to be the quarter with the most significant supply constraints, with improvements expected starting in FY26Q2 as yield rates and capacity ramp-up [4]