AI Takeaway
Intel's FY2025 10-K shows near-breakeven net income of -$267M (a dramatic improvement from -$18.8B in FY2024) driven by aggressive cost cuts in R&D and SG&A, even as revenue edged down 0.5% to $52.9B and the company continued to post negative operating margins.
Revenue
$52.85B
-0.47% YoY
EPS (Basic)
$-0.06
++98.63% YoY
Gross Margin
34.8%
++2.10% YoY
Operating Income
$-2.21B
++81.04% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue declined modestly by 0.5% YoY to $52.9B from $53.1B, suggesting Intel has stabilized its top line but has yet to return to meaningful growth as it navigates intense competition in CPUs, data center, and AI accelerator markets.
Source: Source: 10-K Income Statement
Gross profit rose 5.9% YoY to $18.4B, lifting gross margin from 32.7% to 34.8%, a 210 basis point improvement. This reflects a $1.3B reduction in cost of revenue, indicating progress in manufacturing efficiency or product mix improvement.
Source: Source: 10-K Income Statement / Key Ratios
Operating loss narrowed sharply from -$11.7B to -$2.2B (an 81% improvement), primarily driven by a $2.8B (16.8%) cut in R&D spending and a $883M (16.0%) reduction in SG&A, reflecting Intel's restructuring and workforce reduction initiatives.
Source: Source: 10-K Income Statement
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Upgrade to unlockIntel posted an operating margin of -4.2% and net margin of -0.5% in FY2025, meaning the company is still not generating profit from its core operations. Continued losses could pressure the balance sheet and limit investment capacity if the turnaround stalls.
Source: Source: 10-K Key Ratios / Income Statement
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Upgrade to unlockReported EPS of $0.15 versus the $0.08 analyst consensus — a +80.9% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $52.85B | $53.1B | -0.47% |
Cost of Revenue | $34.48B | $35.76B | -3.57% |
Gross Profit | $18.38B | $17.34B | +5.94% |
Operating Income | $-2.21B | $-11.68B | +81.04% |
Net Income | $-267M | $-18.76B | +98.58% |
EPS (Basic) | $-0.06 | $-4.38 | +98.63% |
EPS (Diluted) | $-0.06 | $-4.38 | +98.63% |
R&D Expense | $13.77B | $16.55B | -16.75% |
SG&A Expense | $4.62B | $5.51B | -16.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $211.43B | $196.49B | +7.61% |
Current Assets | $63.69B | $47.32B | +34.58% |
Current Liabilities | $31.57B | $35.67B | -11.47% |
Stockholders' Equity | $114.28B | $99.27B | +15.12% |
Cash & Equivalents | $14.27B | $8.25B | +72.93% |
Long-Term Debt | $46.59B | $50.01B | -6.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $9.7B | $8.29B | +17.00% |
Investing Cash Flow | $-14.82B | $-18.26B | +18.82% |
Financing Cash Flow | $11.59B | $11.14B | +4.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 34.8% | 32.7% | +2.10% |
Operating Margin | -4.2% | -22.0% | +17.80% |
Net Margin | -0.5% | — | — |
ROE | -0.2% | — | — |
ROA | -0.1% | — | — |
Current Ratio | $2.017 | — | — |
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Intel reported a net loss of -$267M (-$0.06 EPS) in FY2025, a dramatic improvement from the -$18.8B loss (-$4.38 EPS) in FY2024. Whether this beat Wall Street consensus estimates depends on analyst forecasts at the time, which are not included in the 10-K filing itself.
Intel's FY2025 results showed near-breakeven profitability with a net loss of just -$267M, down from -$18.8B the prior year, driven by $3.6B in combined R&D and SG&A cuts. Revenue was essentially flat at $52.9B, gross margin expanded to 34.8%, and cash nearly doubled to $14.3B, signaling meaningful progress in Intel's turnaround but with operating losses still persisting.
Based on the financial data, key risks include sustained negative operating margins (-4.2%), a $46.6B long-term debt burden, and the potential long-term competitive impact of cutting R&D spending by 16.8% to $13.8B. Intel also faces the challenge of generating adequate returns on its $211B asset base, much of which is tied to its capital-intensive foundry strategy.
Intel's FY2025 revenue declined marginally by 0.5% to $52.9B from $53.1B in FY2024, indicating the company has stabilized its top line but has not yet returned to growth. This flat performance occurred despite significant restructuring and cost-cutting efforts across the business.
Intel's financial health improved meaningfully in FY2025: the current ratio stands at a healthy 2.02x, cash and equivalents nearly doubled to $14.3B, and operating cash flow grew 17% to $9.7B. However, $46.6B in long-term debt, continued GAAP operating losses, and negative free cash flow (given $14.8B in investing outflows) mean Intel still faces significant financial challenges in its turnaround.