Intel’s (NASDAQ:INTC) Q4 Sales Top Estimates
Petr Huřťák
Thu, January 22, 2026 at 4:18 PM EST
4 min read
In this article:
Computer processor maker Intel (NASDAQ:INTC) reported revenue ahead of Wall Streets expectations in Q4 CY2025, but sales fell by 4.1% year on year to $13.67 billion. On the other hand, next quarter’s revenue guidance of $12.2 billion was less impressive, coming in 3.2% below analysts’ estimates. Its non-GAAP profit of $0.15 per share was 80.7% above analysts’ consensus estimates.
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Intel (INTC) Q4 CY2025 Highlights:
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Revenue: $13.67 billion vs analyst estimates of $13.41 billion (4.1% year-on-year decline, 2% beat)
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Adjusted EPS: $0.15 vs analyst estimates of $0.08 (80.7% beat)
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Adjusted Operating Income: $1.21 billion vs analyst estimates of $839.5 million (8.8% margin, 43.5% beat)
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Revenue Guidance for Q1 CY2026 is $12.2 billion at the midpoint, below analyst estimates of $12.6 billion
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Adjusted EPS guidance for Q1 CY2026 is $0 at the midpoint, below analyst estimates of $0.05
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Operating Margin: 4.2%, up from 2.9% in the same quarter last year
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Free Cash Flow was $2.22 billion, up from -$1.5 billion in the same quarter last year
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Inventory Days Outstanding: 121, down from 124 in the previous quarter
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Market Capitalization: $270.4 billion
“Our conviction in the essential role of CPUs in the AI era continues to grow,” said Lip-Bu Tan, Intel CEO.
Company Overview
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Intel’s demand was weak and its revenue declined by 6.2% per year. This wasn’t a great result and suggests it’s a low quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Intel’s annualized revenue declines of 1.3% over the last two years suggest its demand continued shrinking.
This quarter, Intel’s revenue fell by 4.1% year on year to $13.67 billion but beat Wall Street’s estimates by 2%. Company management is currently guiding for a 3.7% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 2.2% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below the sector average.
Story Continues
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Intel’s DIO came in at 121, which is one day below its five-year average. At the moment, these numbers show no indication of an unusual inventory buildup.
Key Takeaways from Intel’s Q4 Results
It was good to see Intel beat analysts’ EPS expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. On the other hand, its revenue guidance for next quarter missed. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 3.9% to $52.23 immediately after reporting.
So do we think Intel is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
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