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Investing.com -- Intel beat Wall Street expectations for first-quarter earnings and revenue but a disappointing forecast for the current quarter sent its shares down by more than 5% in premarket trading.
The chipmaker reported adjusted earnings of $0.13 per share, topping analysts’ expectations for breakeven results.
Revenue came in at $12.7 billion, compared to $12.25 billion consensus forecasts and flat from a year earlier.
Intel (NASDAQ:INTC) projected second-quarter adjusted earnings of breakeven on revenue between $11.2 billion and $12.4 billion. Analysts had expected revenue of $12.8 billion.
"The second-quarter revenue outlook is below expectations with management citing uncertainty around the tariff and regulatory environment as well as continued competitive pressure across various end markets," analysts at Stifel said in a note to clients.
The company also said it is streamlining its organization and eliminating management layers to drive more efficient execution and faster decision-making. As part of a cost-saving initiative, Intel cut its 2025 operating expense target to $17 billion from $17.5 billion and now aims for $16 billion in 2026.
"Intel will focus on empowering engineering talent to create great products and driving greater accountability across the company while making it easier for customers to do business with Intel," the company said in the statement. This is the first earnings under new CEO Lip-Bu Tan, who has been tasked with turning around performance and helping it catch up in the race to harness artificial intelligence.
Intel also lowered its 2025 gross capital expenditure target to $18 billion from $20 billion, citing operational efficiencies and better use of construction-in-progress assets.
Net capital expenditures are expected to range from $8 billion to $11 billion.
(Scott Kanowsky contributed reporting.)