Intel Corporation Q4 2025 Earnings Call Transcript

Corporate Participants

• John Pitzer – Vice President, Investor Relations
• Lip-Bu Tan – Chief Executive Officer
• David Zinsner – Executive Vice President & Chief Financial Officer

Conference Call Participants

• Ross Seymour – Deutsche Bank
• Tim McCurry – UBS
• Joe Moore – Morgan Stanley
• Stacy Raskin – Bernstein Research
• Aaron Rakers – Wells Fargo

Prepared Remarks

John Pitzer: Good afternoon, everyone, and welcome to Intel fourth quarter 2025 earnings conference call. By now you should have received a copy of our earnings release and the earnings presentation.

Lip-Bu Tan: Thank you, John. I am pleased to report that Intel delivered a strong fourth quarter, with revenue of $13.7 billion exceeding the midpoint of our guidance. Our results demonstrate continued progress in our transformation journey.

In Client Computing, we saw robust demand for AI PCs. Our Core Ultra processors continue to gain traction with OEM partners, and we are seeing strong customer interest in AI-enabled experiences across both consumer and commercial segments.

Data Center and AI revenue grew sequentially, driven by enterprise server recovery and continued momentum in our Gaudi accelerator business. We secured several significant design wins that position us well for 2026.

David Zinsner: Thanks, Lip-Bu. Fourth quarter revenue was $13.7 billion, exceeding our guidance midpoint. Non-GAAP gross margin was 37.9%, and non-GAAP EPS was $0.15, both above expectations. Operating cash flow was $2.1 billion.

Q&A Session

Ross Seymour (Deutsche Bank): Can you talk about the demand environment for AI PCs and how you see that evolving through 2026?

Lip-Bu Tan: We are very encouraged by the AI PC momentum. The enterprise refresh cycle is beginning, and our Core Ultra processors are well-positioned. We expect AI PC penetration to accelerate throughout 2026 as more compelling use cases emerge.

Stacy Raskin (Bernstein): David, can you provide more color on gross margin trajectory?

David Zinsner: We made solid progress on gross margins in Q4. As we continue to ramp our advanced nodes and improve factory utilization, we expect continued improvement. Our long-term target of 60% remains intact.

Joe Moore (Morgan Stanley): Can you discuss the competitive dynamics in the data center market?

Lip-Bu Tan: The data center market is evolving rapidly with AI workloads. While GPUs dominate training, we see significant opportunity in inference where our Xeon and Gaudi products are well-suited. Our total addressable market continues to expand.