Intel Reports Loss in Q4 With Gloomy Outlook
The company’s foundry unit lost over $10 billion in 2025
By Mark LaPedus
It was another difficult quarter for Intel. The company moved back into the red amid ongoing losses in its foundry business. Intel also saw huge demand for its processor lines during the most recent quarter. But it was unable to meet demand due to a shortfall of fab capacity.
On Jan. 22, Intel reported sales of $13.7 billion for the fourth quarter of 2025, down 4% year-over-year. Net loss attributable to Intel was $591 million in the fourth quarter, which ended Dec. 27, 2025. That compares to a loss of $126 million in the like period a year ago.
In the third quarter of 2025, Intel posted a profit following a string of quarterly losses. In the fourth quarter of 2025, though, the company moved back into the red, due in part to losses in the foundry business.
Intel’s foundry business continues to spill red ink. The company’s troubled foundry unit reported a $2.5 billion operating loss on sales of $4.5 billion in the fourth quarter of 2025.
“Foundry revenue was $4.5 billion (+6% quarter-over-quarter, +4% year-over-year), above our estimate of $4.4 billion, with external foundry revenue of $222 million attributable to projects with the U.S. government and the de-consolidation of Altera,” said John Vinh, an analyst with KeyBanc Capital Markets, in a research note. “Foundry reported an operating loss of $2.5 billion in 4Q, due to the early ramp of 18A.”
18A is Intel’s new process technology. Intel recently launched its Core Ultra Series 3 processor line, marking the debut of the company’s first chips built on its new 18A process technology. In addition, Intel Foundry Services (IFS)—the company’s foundry unit--has won some foundry business from Apple. Plus, IFS has made some yield improvements for its new 18A process.
Still, Intel has reported several consecutive quarterly losses for its foundry unit. Most of Intel’s foundry sales are generated by the company’s own products.
For the full year of 2025, Intel’s foundry unit reported a $10.318 billion operating loss on sales of $17.826 billion in 2025. In 2024, Intel’s foundry unit lost $2.249 billion.
To be sure, 2025 proved to be a difficult year for Intel. In 2025, revenue was $52.9 billion, flat year-over-year. Net loss attributable to Intel was $267 million in 2025.
Gloomy outlook
Meanwhile, Intel also provided a sobering outlook. For the first quarter of 2026, Intel’s sales are expected to be between $11.7 billion to $12.7 billion. First-quarter EPS attributable to Intel is expected to be minus $0.21 and non-GAAP EPS attributable to Intel is expected to be $0.00.
“Management positions 1Q26 at the lower end of the seasonal range due to supply constraints, and notes the results would be well above seasonal with adequate supply; performance may trend above historical seasonality as factory output improves sequentially beginning in 2Q26,” KeyBanc’s Vinh said.
Intel did not provide a numerical forecast for its capital spending plans in 2026. But the company’s capital spending is expected to be flat to slightly down in 2026, as compared to 2025.
Meanwhile, during a conference call, Lip-Bu Tan, Intel’s new chief executive, was upbeat about the company’s progress. “2025 was a year of solid progress. Over the last 10 months, we have established the foundation for the new Intel – a more focused and execution-driven company. We simplified our organization and greatly reduced bureaucracy to improve efficiency and accelerate decision-making. We also recruited new leaders from the outside, and empowered key leaders from within. We strengthened our balance sheet, forged strong new partnerships, and deepened relationships with existing, as well as new customers,” Tan said.
“Our Q4 was another positive step forward. Revenue, gross margin and EPS were all above our guidance. We delivered these results despite supply constraints which meaningfully limited our ability to capture all of the strength in our underlying markets. We are working aggressively to address this and better support our customers’ needs going forward,” Tan said.
“Looking ahead for 2026, we will continue to position Intel to capture the significant growth opportunity AI presents across all our businesses. We will do this by strengthening our client franchise, advancing our datacenter, AI accelerator and ASICs strategies, and continuing to build a trusted U.S. foundry,” Tan said.