Intel Corp.

Q1 2025 Performance: Intel reported Q1 revenue of $12.7 billion, exceeding guidance thanks to strong Xeon sales. Non-GAAP gross margin was 39.2%, outperforming expectations due to a favorable product mix and cost improvements. EPS was 13 cents compared to the breakeven guidance, reflecting effective cost management with operating expenses down $700 million year-over-year.

Outlook for Q2 and Beyond: For Q2 2025, Intel forecasted revenue between $11.2 billion and $12.4 billion, a decline of 2% to 12% sequentially. This cautious outlook reflects potential economic slowdowns, anticipated impacts from trade policies, and tariff risks that could affect customer spending and overall demand.

Operational Changes: New CEO Lip Bu Tan emphasized the need for cultural transformation and streamlined operations within Intel. Immediate actions include flattening the management structure to improve decision-making speed, empowering teams, and targeting a $17 billion operating expense (OpEx) for 2025, reduced from previous estimates. This reorganization aims to accelerate innovation and enhance product competitiveness.