Semiwiki on LinkedIn Semiwiki on Facebook Semiwiki on Twitter Register / Log in 
Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/threads/intel-reports-third-quarter-2025-financial-results.23875/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2030770
            [XFI] => 1060170
        )

    [wordpress] => /var/www/html
)

Intel Reports Third-Quarter 2025 Financial Results

Daniel Nenni

Daniel Nenni

Admin
Staff member
Intel-Lip-Bu-Tan.jpg


Intel reported better-than-expected financial results for the third quarter of 2025, signaling progress in its ongoing turnaround. Revenue reached $13.7 billion, exceeding analyst expectations of roughly $13.1 billion and marking a modest 3% year-over-year increase. Adjusted earnings came in at $0.23 per share, significantly above the consensus forecast of about $0.02, reflecting stronger operational execution and cost discipline.

Intel’s gains were driven by improving demand across its client computing and data center segments, along with early contributions from its AI-focused products. The company also benefited from restructuring efforts aimed at streamlining operations and cutting expenses. However, Intel maintained a cautious tone for the remainder of the year, guiding fourth-quarter revenue between $12.8 billion and $13.8 billion.

Gross margins showed gradual improvement, though they remain below historical norms as Intel continues heavy investments in its foundry business and advanced process technologies. Investors responded positively to the earnings beat, with shares rising about 8% after the announcement. The results suggest Intel’s multi-year turnaround plan is beginning to show traction.

"Our Q3 results reflect improved execution and steady progress against our strategic priorities,” said Lip-Bu Tan, Intel CEO. “AI is accelerating demand for compute and creating attractive opportunities across our portfolio, including our core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services. Intel’s industry-leading CPUs and ecosystem, along with our unique U.S.-based leading-edge logic manufacturing and R&D, position us well to capitalize on these trends over time.”

“We took meaningful steps this quarter to strengthen our balance sheet, including accelerated funding from the U.S. Government and investments by NVIDIA and SoftBank Group that increase our operational flexibility and demonstrate the critical role we play in the ecosystem,” said David Zinsner, Intel CFO. “Our stronger than expected Q3 results mark our fourth consecutive quarter of improved execution and reflect the underlying strength of our core markets. Current demand is outpacing supply, a trend we expect will persist into 2026.”

www.intc.com

Intel Reports Third-Quarter 2025 Financial Results

www.intc.com www.intc.com
 
Some interesting comments on 18A and when it becomes competitive.

No one has asked the question I recommended "is 18A ramp helping or hurting margins in 2026?" DZ answered it anyway.

Luckily the majority of Intel revenue comes from 10 and 7 (and TSMC).
 
tomatoma said:
Intel is losing
Click to expand...

This isn't very optimistic for 18A short term - they're saying that yields will only be "good margin" in 2027, with a small chance at the end of 2026.

It's definitely a signal (to me at least), that N2 yields will be ahead of Intel 18A in 2H 2026.

I'm personally curious - is it the GAAFET, BSPD, or something else causing a slower than expected ramp.

(Note - I'm assuming this quote is from Intel at the investor call today).
 
Stacy Rasgon: Dave, I wanna follow-up on two things on 18A. I thought I heard you say, number one, that yields would not be in a great place at least until the end of next year. And then I thought I also heard you say that you were not gonna be adding a lot of 18A capacity next year. Did I hear those wrong?

Dave Zinsner's Answer: On 18A, we're still at our infancy. And what I'm saying is relative to the CapEx plan, it's not like we're gonna incrementally add supply for 18A next year. But yes, of course, we're going to be ramping the volume over the course of next year. I wouldn't say 18A yields are in a bad place. I mean, they're where we want them to be at this point. We had a goal for the end of the year, and they're gonna hit that goal. But to be fully accretive in terms of the cost structure of 18A, we need the yields to be better. That's like every process. That's what happens, and it's going to take all of next year, I think, to really get to a place where that's the case.
Click to expand...
 
Three thoughts on 18A:

1. These yield and margin comments are basically what folks here have been saying; it’s good enough to ship products, but not good enough to rapidly move products onto it without enormous margin issues.
2. This isn’t news; they’re saying the CapEx plan and volume ramp for 18A is going to plan. There’s no better nor worse news here.
3. Intel Foundry is still no TSMC; N2 will ramp in huge volume with good margins from the start in 2H26 and 18A will be no competition for it.

There’s a long road ahead for Foundry, and I await further news on 18AP and customer wafer agreements. No news on the reported MSFT Maia 3 deal…
 
Right, so taking this at face value (it's directly from Intel), the key questions that occur to me are:

1. How does this 18A yield ramp compare to the ramp on the nearest equivalent TSMC process ?
2. Do we expect the 2nm yield ramp to be significantly faster than that for 18A ? If so, why and with what confidence level.

My sense is that the 18A yield ramp is slow (and slower than TSMC). But I could be wrong, so I'd like to hear from someone who knows what they're talking about here.
 
Brady said:
Three thoughts on 18A:

1. These yield and margin comments are basically what folks here have been saying; it’s good enough to ship products, but not good enough to rapidly move products onto it without enormous margin issues.
2. This isn’t news; they’re saying the CapEx plan and volume ramp for 18A is going to plan. There’s no better nor worse news here.
3. Intel Foundry is still no TSMC; N2 will ramp in huge volume with good margins from the start in 2H26 and 18A will be no competition for it.

There’s a long road ahead for Foundry, and I await further news on 18AP and customer wafer agreements. No news on the reported MSFT Maia 3 deal…
Click to expand...
exactly

And Intels most successful and profitable products are 10 and 7. And Intel mentioned the effect of 18A on Intels Margins..... (I am pretty sure DZ is getting beat up this morning).

LBT: "What part of 'Shut the &$#% Up' didnt you understand???"
DZ: "Next time I will just say 'we are happy with the progress on 18A and 14A is going to be spec-tacular'"

18A is technically a very advanced and good process. the Finances are not good due to low volume and high cost (the "Intel problem"). The volumes in 2026 and even 2027 are low.
 
Last edited:
You must log in or register to reply here.
Back
Top