Intel Tops Q1 Expectations but Weak Outlook Trigger Sell-Off

Intel (NASDAQ:INTC) beat Wall Street estimates for first-quarter earnings and revenue, but a downbeat forecast for the current quarter and cost-cutting signals triggered a sharp sell-off, sending shares down more than 7% in premarket trading today.

The chipmaker posted adjusted earnings of $0.13 per share, surpassing expectations for breakeven results. Revenue was flat year-over-year at $12.7 billion, slightly above the $12.25 billion consensus.

However, the optimism faded quickly as Intel projected second-quarter revenue in the range of $11.2 billion to $12.4 billion—below analysts’ expectations of $12.8 billion. The company also guided for breakeven earnings next quarter, citing uncertainty around tariffs, regulatory risks, and competitive pressure across several business lines.

To boost long-term execution, Intel announced a series of structural changes, including management streamlining aimed at faster decision-making and improved efficiency. It lowered its 2025 operating expense target to $17 billion and set a new goal of $16 billion for 2026. Gross capital expenditures for 2025 were also revised down to $18 billion from the previously planned $20 billion.

This marks the first earnings report under new CEO Lip-Bu Tan, who is now tasked with steering Intel through a challenging competitive landscape and accelerating its efforts in AI innovation.

While Intel’s cost discipline and operational realignment may strengthen its foundation over time, the market’s reaction reflects immediate concerns over growth headwinds and the pace of its turnaround strategy.