The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

F500 2025-Intel

Intel is one of the largest semiconductor chip makers in the world. Founded in 1968, it designs, develops, manufactures, markets, and sells computing products and offers related services.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Intel

Intel made the 2023 list as a result of its age dispersion and board independence. But it’s weathered a stormy year with supply-chain snarls in the chip industry and <a href="https://fortune.com/2022/07/15/pc-prises-increasing-as-demand-falls-intel-chip-prices/">depressed demand</a> for personal computers. The company’s shares fell by about 35% from <a href="https://www.google.com/finance/quote/INTC:NASDAQ?sa=X&amp;ved=2ahUKEwiv_LyLiMH-AhU7kokEHYQrCKgQ3ecFegQIKBAa&amp;window=1Y">April</a> 2022 to 2023, and it reported a 32% dip in fourth-quarter earnings year over year. The chipmaker cut management pay in early 2023 as part of a turnaround plan—including a<a href="https://fortune.com/2023/02/01/intel-pay-cut-pat-gelsinger-samsung-amd-sk-hynix-q4-earnings/"> 25% cut</a> to CEO Pat Gelsinger’s base pay—and conducted layoffs as well. Intel has made several new board appointments over the past year, including Lip-Bu Tan, founding managing partner of Walden Catalyst Ventures; and Barbara Novick, cofounder of asset management firm BlackRock. It also tapped Frank Yeary, a managing member of private investment firm Darwin Capital Advisors and an existing member of Intel’s board, as its new chair. There are five women on Intel’s 12-person <a href="https://www.intc.com/board-and-governance/board-of-directors">board</a>.

Fortune Modern Board 25

See which workplaces made this year's list.

GPTW Manufacturing Production Large 2023-Intel

Employees say: 
 
"The work culture is more personal and idea-driven. We have open conversations, and I am not afraid of speaking my heart out. I believe each employee has a voice, and management encourages us to try new things."

Best Large Workplaces in Manufacturing and Production

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-062-Intel

Semiconductor manufacturer Intel took some knocks in 2022 amid slumping PC sales, but it remains on track to achieve its goals of opening new factories and churning out chips as advanced as those made by Taiwan-based TSMC. 
<ul> 
 	<li>In April 2023, Intel reported the largest quarterly loss in company history: $2.8 billion. After the first-quarter loss, Intel said that it would implement layoffs across the company to reduce costs.</li> 
 	<li>One bright spot was Intel-controlled Mobileye, maker of systems and software for self-driving cars, which boosted sales 16% in the first quarter of 2023.</li> 
 	<li>In late 2022 and early 2023, Intel launched next-generation processors including its fourth-gen Xeon Scalable processors, ramping up production to meet pent-up demand.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

Modern Boards 2022 Intel

The pioneering chip manufacturer earned the No. 4 spot because of its strengths in board independence and age dispersion.  
 
Despite up-and-down stock performance of late, Intel received a recent <a href="https://www.marketwatch.com/story/intel-is-on-a-long-and-expensive-road-but-stock-may-not-meaningfully-underperform-further-analyst-says-11645634423">upgrade from analysts</a> due to improved cash flow and long-term projects put in place by CEO Pat Gelsinger, who took on the role in February 2021. Gelsinger <a href="https://fortune.com/2021/12/02/intel-aims-to-vault-ahead-of-competition-during-chip-shortage/">has pledged</a> $250 billion over the next decade for capital expenditures, and Intel is opening two $10 billion fabrication plants in Arizona and another two $10 billion plants in Ohio. The CEO was <a href="https://www.cnbc.com/2022/03/02/why-intels-ceo-was-a-guest-at-bidens-state-of-the-union-address.html">acknowledged by President Biden</a> at the State of the Union address in 2022 for his plans to open a semiconductor hub near Columbus. 
 
Intel’s board has been chaired since January of 2020 by Omar Ishrak, a former chairman and CEO of Medtronic. 
 
The rest of the company’s <a href="https://www.intc.com/board-and-governance/board-of-directors">slate of directors</a> has a distinct academic flavor that is relatively rare for a corporate board. Andrea Goldsmith and Tsu-Jae King Liu are the deans of the engineering schools at Princeton University and UC Berkeley, respectively. Risa Lavizzo-Mourey is a former professor of public health at the University of Pennsylvania; she was previously CEO of the Robert Johnson foundation. Frank Yeary is the former vice chancellor at UC Berkeley, though he previously spent 25 years in finance, including an executive role at Citigroup; he is currently a managing member at Darwin Capital Advisors. 
 
CORRECTION: An earlier version of this story incorrectly identified Jim J. Goetz as the chair of Intel's board. Goetz is an independent director.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Intel

Intel has had a challenging couple of years, as manufacturing and design problems have impaired its rollout of new chips. Its woes have contributed to the global semiconductor shortage, and Intel has been dethroned by Samsung as the world’s leading chipmaker by revenue. CEO Pat Gelsinger is hoping that expanding its production pipeline can restore Intel’s fortunes: The company has pledged $250 billion over the next decade for capital expenditures, and over the next few years it plans to open two new fabrication plants in Arizona and another two in Ohio, investing a total of $40 billion in those projects.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 108 Intel

It’s been a rough year for the semiconductor giant, and unlike some other companies, Intel can’t put all the blame on COVID-19. In July 2020, Intel shocked the tech industry when it said it would delay a long-awaited upcoming 7-nanometer computer chip owing to manufacturing problems. The surprise postponement spooked investors, who were already worried that the company was lagging competitors like Taiwan Semiconductor Manufacturing Co. In early 2021, former VMware CEO Pat Gelsinger became Intel’s new top boss—a homecoming of sorts, since Gelsinger previously worked at the chipmaker for 30 years. Now, investors are hoping Gelsinger will be able to pull off a turnaround.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-40-Intel

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

World's Most Admired Companies

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-138-Intel

Intel’s big bet on artificial intelligence still hasn’t resulted in blockbuster sales. The semiconductor giant’s 2019 revenue increased 2% year-over-year, to $72 billion. Amid increased competition from the likes of Nvidia and AMD, Intel is doubling down on acquisitions to give it the A.I. technologies and expertise it seeks. Case in point: the $2 billion purchase of Israeli A.I. chip maker Habana Labs, announced in December.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-045-Intel

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

These 52 companies from across the globe are doing well by doing good.

Change the World

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here’s our look at 57 companies that do well by doing good.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Here’s our look at 50 companies that do well by doing good.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Google tops the list once again, marking its eighth appearance and fifth time as No. 1.

Fortune 100 Best Companies to Work For

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Company Info

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Key Attributes Of Reputation: Ranks

Innovation

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Best Workplaces In Manufacturing And Production

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Intel is one of the largest semiconductor chip makers in the world. Founded in 1968, it designs, develops, manufactures, markets, and sells computing and related products and services.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Intel (INTC): Company Profile, Stock Price, News, Rankings

legacy

Intel

intel

Welcome to Intel Corp's Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star one one on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star one one again. As a reminder, today's program is being recorded. Now I'd like to introduce your host for today's program, Mr. John Pitzer, Senior Vice President, Investor Relations. Please go ahead, sir.

Thank you, Jonathan, and good afternoon to everyone joining us today. By now, you should have received a copy of the Q4 earnings release and earnings presentation, both of which are available on our investor website, intc.com. For those joining us online today, the earnings presentation is also available in our webcast window. I am joined today by our CEO, Lip-Bu Tan, and our CFO, David Zinsner. Lip-Bu will open with comments on our fourth quarter results, as well as provide an update on the progress we are making on our strategic priorities. Dave will then discuss our overall financial results, including first quarter guidance, before we transition to answer your questions. Before we begin, please note that today's discussion does contain forward-looking statements based on the environment as we currently see it, and as such, are subject to various risks and uncertainties.

It also contains references to non-GAAP financial measures that we believe provide useful information to our investors. Our earnings release, most recent annual report on Form 10-K, and other filings with the SEC provide more information on specific risk factors that could cause actual results to differ materially from our expectations. They also provide additional information on our non-GAAP financial measures, including reconciliations where appropriate to our corresponding GAAP financial measures. With that, let me turn things over to Lip-Bu.

Thank you, John, and thank you all for joining us today. 2025 was a year of solid progress. Over the last 10 months, we established the foundation for 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. I'm encouraged by my conversation with our customers and partners around the world. I'm hearing a clear, consistent message. They see the progress we are making. They want Intel at the table as they navigate their own transformations. The opportunity in front of us is meaningful and significant.

The era of artificial intelligence is driving unprecedented demand for semiconductors across the entire compute landscapes, from AI-accelerated and traditional data centers into the network and enterprise domains, all the way out to client and edge devices. Rapid deployment of AI workloads across this diverse environment will require heterogeneous silicon solutions leveraging CPU, embedded NPUs, discrete and integrated GPU, ASICs, and XPUs. In addition, we will need to see innovations in the software stack along with new emerging technologies like photonics, memory interfaces, interconnect, and quantum to name just a few. The breadth of our IP and know-how across silicon design, system-level integration, wafer manufacturing, and advanced packaging uniquely position us to capitalize on these AI-driven trends, capture sustainable, profitable growth. This will not happen overnight, and our executions need to continue to improve.

But we will stay humble as we address the work ahead, and we will never be satisfied. 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 strengths in our underwriting markets. We are working aggressively to address this and better support our customers' needs going forward. 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 data center, AI accelerator, and ASIC strategies, and continue to build trusted U.S. foundry. Let me start with our core x86 franchise, which remains the most widely deployed compute architecture in the world.

The deployment of AI is only amplifying the importance of x86, from orchestration and control planes to inference edge workloads and agentic AI. In our Client Computing Group, we strengthen our position in both consumer and enterprise notebooks with our Core Ultra Series 3 lineup, formerly known as Panther Lake, and build on our most advanced Intel 18A manufacturing process. We committed to deliver our first Series 3 SKU by the end of 2025, and we exceeded that commitment by delivering our first three SKUs. While we still have work to do, I'm encouraged by the steady progress on our Intel 18A use, and Naga and his team remain laser-focused on additional improvements as they ramp Series 3 into the high volume needed to meet strong customer demand.

Our client momentum was on full display at CES earlier this month, where we formally launched Series 3 with our OEM partners, powering over 200 notebook designs. Series 3 will be the most broadly adopted and globally available AI PC platform we have ever delivered. Along with our next-generation Nova Lake coming at the end of 2026, we now have a client roadmap that combines best-in-class performance with cost-optimized solutions, giving me confidence that we are on the path of fortifying market share and profitability in both notebooks and desktops over the next several years. In addition, PC becomes an important part of the AI infrastructure. The surge in AI workloads is driving massive demand for data centers, but cloud capacity alone cannot meet the scale of inference needed, especially in the power-constrained environment.

This accelerates the push toward hybrid AI, splitting workloads between cloud and client, which offers clear advantages in performance, cost, and control. We are working closely with ecosystem partners to seamlessly enable hybrid AI, and we are encouraged by the opportunity to grow the install base and accelerate the refresh rates over time. Let me now turn to DCAI. To support our AI objectives, I believe that our traditional server and accelerator roadmaps must advance together. To reinforce the alignment, I am centralizing our data center and AI businesses under one leader, ensuring tight coordination across CPUs, GPUs, and platform strategy. Demand for traditional servers continues to be very strong, and we are focused on ramping available capacity to support the meaningful uptick we are seeing, including partnering with key customers to support their needs beyond 2026.

The continuing proliferation and diversification of AI workloads is placing significant capacity constraints on traditional and new hardware infrastructure, reinforcing the growing and essential role CPUs play in the AI era. This is and will continue to benefit the ongoing ramp of Granite Rapids, as well as our mainstream products, Sapphire Rapids and Emerald Rapids. We have also made decisive changes to simplify our server roadmap, focusing resources on the 16-channel Diamond Rapids and areas to accelerate the introduction of Coral Rapids where we can. With Coral Rapids, we will also reintroduce multithreading back into our data center roadmap. We also continue to work closely with NVIDIA to build a custom Xeon fully integrated with their NVLink technology to bring best-in-class x86 performance to AI host nodes.

Over the last several quarters, we have been developing a broad AI and accelerator strategy that we plan to refine in the coming months.

This will include innovative options to integrate our x86 CPU with fixed function and programmable accelerator IP. Our focus is on the emerging wave of AI workloads: reasoning models, agentic, and physical AI, and inference at scale, where we believe Intel can truly disrupt and differentiate. Our long-term ambition is clear: to rebuild Intel as a compute platform of choice for the next era of AI-driven computing, grounded in world-class engineering and accelerated roadmap, and a renewed culture of execution. We are also building momentum in ASICs as customers seek purpose-built silicon for AI, networking, and cloud workloads. Our combination of design services, IP building blocks, and manufacturing capabilities positions Intel well to resolve specialized problems at scale.

This is not a new area for us, although it is one that I'm committing significantly more focused resources and investment dollars, including leveraging my own experience at Cadence Design, supporting and growing this market. Finally, we remain focused on the long-term objective of building a world-class wafer and advanced packaging foundry, anchored in trust, consistency, and execution. As I have said before, building a foundry business will take time and considerable effort and resources. While still early in our journey, we have hit some earlier important milestones worth highlighting. We are now shipping our first products built on Intel 18A, the most advanced semiconductor process developed and manufactured on U.S. soil. As stated earlier, yields continue to improve steadily as we work to ramp the supply needed to meet strong customer demand.

In addition, Intel 18AP continues to progress well, and we are engaging with internal and external customers on this node, delivering our 1.0 PDK at the end of the last year. Intel 14A development remains on track. We have taken meaningful steps to simplify our process flow and improve our rate of performance and yield improvement. We are developing a comprehensive IP portfolio on Intel 14A, and we continue to improve our design enablement approach. Importantly, our PDKs are now viewed by customers as industry standard. Engagements with potential external customers on Intel 14A are active. We believe customers will begin to make firm supplier decisions starting in the second half of this year and extending into the first half of 2027. We also have the opportunity to provide strong differentiation in advanced packaging, particularly with EMIB and EMIB-T.

We are focusing on improving quality and yield to support customer ramps beginning in the second half of 2026. In closing, I'm reflecting on 2025. I'm proud of the resilience and commitment our team has demonstrated. We exit the year with a stronger foundation and clearer roadmap for 2026 and beyond. The opportunity ahead is meaningful and significant as AI-driven computing expands all the markets we serve. But I'm also mindful of the challenges ahead of us and transparent about the areas that we are doing well and areas we need to improve. In the short term, I'm disappointed that we are not able to fully meet the demand in our markets. My team and I are working tirelessly to drive efficiency and more output from our fabs. While yields are in line with our internal plans, they are still below what I want them to be.

Accelerating yield improvement will be an important lever in 2026 as we look to better support our customers. As I said earlier, we are on the multi-year journey. It will take time and resolve, but my team and I are committed to rebuilding this iconic American company and increasing the long-term value for our shareholders. I would like to thank my team for their hard work over the course of the last 10 months. I look forward to updating you on our progress as we continue this journey together, including hosting an Investor Day in the second half of this year at our headquarters in Santa Clara. Let me now turn it over to Dave to walk through our financials and business trends in more detail.

Thank you, Lip-Bu Tan. We remain encouraged by the fundamental drivers of demand across our core markets.

Fourth quarter revenue was $13.7 billion at the high end of the range we provided in October. We experienced strong growth across all our businesses, benefiting from the AI infrastructure build-out, with AI PC, traditional server, and networking revenue all up double digits sequentially and year-over-year. Q4 marks the fifth consecutive quarter of revenue above our guidance, even as we navigate industry-wide supply constraints for our key products. Non-GAAP gross margin came in at 37.9%, approximately 140 basis points ahead of guidance on higher revenue and lower inventory reserves, partially offset by an increased mix of outsourced client products and the early ramp of Intel 18A to support the launch of Core Ultra Series 3, codenamed Panther Lake. We delivered fourth quarter non-GAAP earnings per share of $0.15 versus our guidance of $0.08, driven by higher revenue, stronger gross margins, and continued spending discipline.

Q4 operating cash flow was $4.3 billion, with gross CapEx of $4 billion in the quarter and positive adjusted free cash flow of $2.2 billion. NVIDIA's $5 billion investment closed in Q4 as expected. For the full year, revenue was $52.9 billion, down slightly year-over-year due to constraints across our own manufacturing network and with external suppliers, which limited growth, especially in the second half. Full year Non-GAAP gross margin was 36.7%, up 70 basis points on reduced period charges. Full year Non-GAAP EPS was $0.42, up $0.55 year-over-year on lower period charges and improved operating leverage. Specifically, Non-GAAP OpEx of $16.5 billion was down 15% versus 2024, as we executed actions to reduce complexity and bureaucracy in the business and drive improved execution.

For the full year, we generated $9.7 billion in cash from operations and made $17.7 billion of gross capital investments, with capital offsets of approximately $6.5 billion. Although adjusted free cash flow was -$1.6 billion in 2025, we produced $3.1 billion in the second half, as cash from operations more than doubled half on half. We exit 2025 with $37.4 billion of cash and short-term investments bolstered by further monetization of Mobileye, the completion of our stake sale of Altera to Silver Lake, accelerated funding from the U.S. government, and investments by the SoftBank Group and NVIDIA. In addition, we repaid $3.7 billion of debt. Looking back, 2025 marked an important year of progress against our key priorities, even as we know we have more work ahead.

Internally, we reorganized and right-sized the team to become customer-centric and engineering-focused, while shoring up our balance sheet to give us more flexibility to pursue our goals. We've navigated a market that has shifted from tariff-driven uncertainty in the first half to an intense AI-driven demand environment constrained by supply in the second half. 2025 demonstrated the staying power of the x86 ecosystem across client and data center, and the importance of our manufacturing assets as we launched Core Ultra Series 3 on Intel 18A, the most advanced process fully developed and manufactured in the United States. Both create a firm foundation on which to build the new Intel. Moving to segment results, Intel Products' Q4 revenue was $12.9 billion, up 2% sequentially. CCG revenue was down 4% quarter-over-quarter, even as AI PC units grew 16%, and DCAI was up 15%, reflecting strong demand for traditional server compute.

These results reflect our efforts to balance our constrained supply with strong data center demand while maintaining support for our client OEM partners. Where possible, we're prioritizing our internal wafer supply to data center and leveraging an increased mix of externally sourced wafers in client. CCG revenue was $8.2 billion, and in line with our expectations. We estimate the client consumption TAM was greater than 290 million units in 2025, marking two straight years of growth off the post-COVID bottom in 2023 and the fastest TAM growth since 2021. Within the quarter, CCG launched three SKUs of Series 3 ahead of our expectations of one. Performance reviews have been extremely favorable, with up to 27 hours of battery life, a 70% gen-on-gen improvement in graphics, and performance on industry-standard benchmarks that is 50%-100% better than peers.

DCAI revenue was $4.7 billion, up 15% sequentially, above expectations and the fastest sequential growth this decade. Revenue would have been meaningfully higher if we had more supply. While the market continues to benefit from more power-efficient CPUs, stimulating a refresh cycle, all indicators point to the growing and essential role CPUs will play within hyperscale and enterprise AI data centers as inference-driven AI usage expands. The world is shifting from human-prompted requests to persistent and recursive commands driven by computer-to-computer interactions. The CPU's central function coordinating this traffic will drive not only traditional server refresh, but new demand that grows the installed base. In addition, due to the networking demand for the AI infrastructure build-out, our custom ASIC business grew more than 50% in 2025, 26% sequentially, and reached an annualized revenue run rate greater than $1 billion in Q4.

This strength provides our ASIC team a solid base to pursue a $100 billion TAM opportunity. Operating profit for Intel Products was $3.5 billion, 27% of revenue, and down approximately $200 million quarter-over-quarter on an increased mix of outsourced products and seasonally higher operating expenses. Intel Foundry delivered revenue of $4.5 billion, up 6.4% sequentially on increased EUV wafer mix. EUV wafer revenue grew from less than 1% of wafers out in 2023 to greater than 10% in 2025. External foundry revenue was $222 million in the quarter, driven by projects with the U.S. government and the deconsolidation of Altera. Intel Foundry operating loss in Q4 was $2.5 billion and $188 million worse quarter-over-quarter, driven by the early ramp of Intel 18A. Within the quarter, Intel Foundry met key 18A and 14A milestones.

With the official launch of Core Ultra Series 3, Intel Foundry is the only semiconductor manufacturer in the world shipping gate-all-around transistors with backside power for revenue. These advanced wafers are rolling off our production lines in Oregon and Arizona, here in the United States. Finally, our continued progress on Intel 14A demonstrates our commitment to research and develop the world's most important technology on U.S. soil. Turning to All Other, revenue came in at $574 million and was down 42% sequentially due to the Q3 2025 deconsolidation of Altera. The primary components of All Other in Q4 were Mobileye and IMS. Collectively, the category delivered an operating loss of $8 million. I'm pleased with the early momentum at Altera as an independent company with a new leadership team. Their industry-leading programmable fabric, developer productivity-driven software tools, and a large installed base positions them well to drive long-term value creation.

Now, turning to guidance. During the second half of 2025, we supported strong demand for our products with interquarter wafer production and inventory on hand. As we enter 2026, our buffer inventory is depleted, and the mix shift in wafers towards servers, which began in Q3, will not come out of fab until late Q1 2026. As a result, and as we stated last quarter, our internal supply constraints are most acute in Q1. In light of these dynamics, we are forecasting a Q1 revenue range of $11.7 billion-$12.7 billion. The midpoint of $12.2 billion reflects a lower end of seasonal Q1. Within Intel Products, we forecast a more pronounced revenue decline in CCG than in DCAI as we continue to prioritize internal supply to our server and markets.

We expect Intel Foundry revenue of double digits quarter-over-quarter, helped by continued mix shift to EUV wafers and Intel 18A pricing. At the midpoint of $12.2 billion, we forecast a gross margin of approximately 34.5% with a tax rate of 11% and break-even EPS, all on a non-GAAP basis. Gross margin is down sequentially due to lower revenue, increased 18A volumes, and product mix. Let me take a few moments to provide some color for your full year 2026 model. First, from a revenue perspective, we expect our factory network to improve available supply beginning in Q2 and for each of the remaining quarters in 2026. Within the server market, customer feedback and our own market intelligence points to the likelihood of a strong year of growth for DCAI. Finally, client CPU inventory is lean, and there is excitement for Series 3.

In contrast, over the last several months, industry-wide supply for key components like DRAM, NAND, and substrates has come under increasing pressure due to intense demand to support the rapid expansion of AI infrastructure. Rising component pricing is a dynamic we continue to watch closely, especially relative to the client market, and could limit our revenue opportunity this year. For OpEx, we target 2026 operating expenses of $16 billion. We expect non-controlling interest, or NCI, to net to approximately $325 million in Q1 and be approximately $1.2 billion for the year on a GAAP basis. NCI is expected to grow meaningfully again in fiscal 2027. Our share count is forecast to be 5.1 billion shares in Q1 and grow in line with our stock-based compensation going forward.

As we think about our capital expenditures for 2026, we're working to balance our ability to drive capital efficiencies with our need to respond to the demand signals we're receiving. Previously, we said CapEx would be down, but are now planning for a range of flat to down slightly, and for expenditures to be more weighted to the first half. As a reminder, CapEx in 2026 would be to support demand in 2027 and beyond. We expect to generate positive adjusted free cash flow for the full year, and we're planning to retire all $2.5 billion of maturities as they come due this year. I'll wrap up by saying that Q4 was another solid quarter to mark our fifth consecutive quarter of over-delivering to our guide. We exit 2025 increasingly confident in the long-term sustainability of the end markets we serve.

We believe our improved balance sheet, thanks in part to the trust of our strategic partners, combined with the strong talent we have, will enable us to meaningfully participate in the next wave of computing as the industry pushes for returns on their AI investments. I look forward to providing you, our shareholders, an update on what this future means to you at our Analyst Day later this year. With that, I'll turn it over to John to start the Q&A.

Thank you, Dave. We will now transition to the Q&A portion of our call. As a reminder, we would ask each of you to ask one question and a brief follow-up to allow us to accommodate as many of you as possible. With that, Jonathan, can we please take the first question?

Certainly, and our first question for today comes from the line of Ross Seymore from Deutsche Bank. Your question, please.

Hi guys, thanks for taking my question. I guess the first one is two quick parts, and it's both on supply. In the short term, are the yield improvements and the other actions you're taking sufficient to address just typical seasonality throughout the year, given that usually the first quarter would be the low point on revenues, and then perhaps more importantly, longer term on the supply side? You guys seem more confident in your 14A, your 18A, the customer engagements, your internal roadmap. When would you decide to loosen up the reins on the CapEx side of things so that you could address structurally higher demand going forward with more internal supply?

Thanks, Ross, for the question. So on the short-term supply, certainly improving yields and throughput are a great driver of supply increases.

In fact, it's got a great ROI to it because it doesn't require any incremental capital, so that's what Lip-Bu and I are actively working on to improve, and we're reasonably confident that there's a good trajectory there. That said, when you look at CapEx, it's a little bit more nuanced than just it's going to be flat to slightly down. It's actually down significantly in space, so we're spending a lot less in space. We think we have a good footprint in terms of clean room, and what we're devoting more of our dollars to is tools, so we are ramping up tool spending quite a bit in 2026 relative to 2025 to address this supply shortfall as well, and in fact, every quarter, we're seeing kind of wafer start increases pretty much across the board across Intel 7, Intel 3, and 18A.

So all three of them every quarter improve and get better to address the supply. And like I said, we think things will certainly improve in Q2, but we won't be completely out of the woods here. But as we progress through the year, we think things will get better and better. Can we take the 14A thing? Yeah. On 14A, Lip-Bu has been very direct with us on all of this. He does not want to spend on capacity on 14A, only spend on the kind of TD spend or R&D spend associated with 14A, even in the fab until we have customers secured. We've talked about the likelihood is our customers on 14A, their window to secure, or for us to secure them will be in the back half of this year and in the first half of next year.

And so once visibility improves there, we'll start to unlock the spend on 14A.

I can just add a little bit more. I think on the yield improvement, we see 7%, 8% yield improvement per month. I think it's more in focus in the variation, make sure that we can be more consistent delivery, and also the defect density at the end so that we can ship quality wafer to the customer. So I think all those are very important for our PC client, Panther Lake, and then also for the 18A and 14A development. So I think all in all, I see improvement, but still not quite to the industry leading standard yet.

Yeah, I do. The gross margin side, Dave, you gave some puts and takes for the full year on a bunch of different metrics, but you didn't mention gross margin. How should we think about that? And forgive me, it's a 40%-60% incremental. I know you guys give kind of you can drive a truck through. So anything with perhaps just a little more precision directionally would be helpful. Thank you.

Yeah, and I'm not even sure the math is that good on this time around. When you look at Q1, the gross margin decline in Q1, there's two main components. Obviously, revenue coming down with a largely fixed cost business is going to affect gross margins. But the other piece of this is Panther Lake, while the cost structure improves from Q4 to Q1, it's still diluted to the corporate average, and it's a bigger percentage of the mix.

So it actually has a relatively negative impact on gross margin. So that's partly why we're guiding down. There's some mixed things going on as well. I think as we progress through the year, the two things should benefit us. One, we improve our supply, ergo, that should improve our revenue picture. On top of that, Panther Lake's cost structure gets better and better. Lip-Bu talked about the incremental improvement every month we're going to see in yields. We're working on the throughput as well. So those two things combined, that should help in terms of cost structure and make this more of an accretive product to us as opposed to a diluted product. And I think that will be a lot of what is the story around gross margins for the year. They're still mixed, and mixed can go any different direction depending on how things play out.

But what we're largely focused on for the kind of the next 12 months is driving the cost structure of these products that we're building to improve the margins. We know that 34.5% is by no means an acceptable level of gross margins. We're actively working at first to get it to 40%, and then once we get it there, we'll move to a new target.

Jonathan, can we have the next question, please?

Certainly. And our next question comes from the line of Tim Arcuri from UBS. Your question, please.

Thanks a lot. Dave, I'm wondering in the guidance, you're guiding to 12/2, but I'm wondering if you can kind of pro forma that for us. If you could meet all the demand, what would the kind of unconstrained guidance be for March? Yeah.

It's a squishy figure to figure out, Tim, but I would tell you that if you look at kind of that 12/2 relative to the 13/7 we posted in the fourth quarter and look at normal seasonality, it's in the range of seasonal, but it's at the low end of that range of seasonal. We'd be well above seasonal if we had all the revenue or supply, I should say, to hit the revenue.

I do. Thanks. Lip-Bu, there's obviously a lot of excitement about your foundry business. Sounds like we might get a few customer announcements maybe in the second half. But I just wanted to ask you, what do you define as like success in that business? I think prior to you arriving, the mantra was sort of to be number two, the number two foundry player by 2030.

If you look at most of the forecasts for that number two player, it's somewhere in the range of like $30 billion in revenue out by that time. Is this still kind of a reasonable bogey that you're shooting for? And what do you consider as a successful outcome for that? Thanks.

Thanks. Good question. So I think we are determined to commit to drive the world-class foundry business. So I think, first of all, on the 14A, I think we clearly development is on track. We like what we see, and we simplify the whole process flow. Most important is kind of building up the IP portfolio so that we can serve the customer. Some of the IP is very critical in order to serve the customer. The other part is on the yield and improvement. We see trend of improvement, and we also see the variations getting better.

I think in the long run, I think clearly we are kind of anticipating that we have heavy engagement in some of the key customers. We think that the second half of this year, they're going to indicate to us what kind of capacity, firm commitment, so that we can deploy the capacity CapEx to really build that. So I think all in all, I think it's a service business. We really build the trust and the consistency. We're able to deliver. And then we have the PDK on the 14A, first quarter, 0.5. And then we're starting to engage with customers with the key products that they want to run with us. So I think all in process, I think the second half of this year, we were able to have the commitment that we can really drive the scale of the operation.

Another early indicator, I think, of success in the foundry is going to be advanced packaging. And we'll start to see that revenue come in even before we start to see meaningful wafer revenue. And I think as I was talking to investors over the past kind of 12 to 18 months, I was thinking that those opportunities would be measured in hundreds of millions of dollars, and wafer opportunities would be measured in billions. I'd say some of the early customer engagements suggest that we'll be well north of $1 billion on many of these opportunities for advanced packaging. So they're way more exciting than even I had expected. And it's because we have really good technology there that's very differentiated and supports AI in a way that is particularly special.

Yeah, I think the EMIB team, I think it's a very big differentiator for us. And then clearly, we have a couple of customers willing to even prepay the subscription because subscription is very big supply shortage, and then they're willing to share with us. That means that share the commitment they are going to working with us.

Certainly. And our next question comes from the line of Joe Moore from Morgan Stanley. Your question, please.

Yes, thank you. I wonder if you could talk about server prospects. You've sort of talked about some of the challenges of Diamond Rapids not having symmetric multi-threading, and Granite Rapids is going to be important. Can you give us a timeframe on Granite Rapids and sort of what's your expectation for the potential for market share, puts and takes as you wait for that to come?

So I think first of all, I would centralize the data center and AI under Kevork that I hired in to help us to build that. He already built the team and then recruit some of the talents on board. I think the more important right now, we are laser-focused in a 16-channel Diamond Rapids, and we simplify the product roadmap. And then the other part is accelerate the introduction of Coral Rapids. And Coral Rapids will have the reintroduce the multi-thread into our data center workflow. So I think overall, we are very positive. The team is in place now. The roadmap is very clear, and we are very decisive on doing that. And then laser-focus on the Diamond Rapids 16-channel and also accelerate the Coral Rapids introduction.

Yeah, sure. Thank you for that. Just in terms of the mix for the rest of the year, are you able to move wafers towards data center away from PC? Is that something that you're thinking about? And just, it seems like the constraints are at their worst point in Q1 and get better, but I assume you're still constrained beyond that. Are you able to move the mix towards data center?

Yeah, we're absolutely constrained, Joe. So what we're doing within client, we're focusing on the mid and high end and not as focused on the low end. And then to the extent we have excess, we're pushing all of that into the data center space to meet that customer demand. And I think you'll see some share adjustments based on that because our primary focus is to our main customers. And obviously, we have important customers on the data center side.

We have important OEM customers on both data center and client, and that needs to be our priority to get the limited supply we have to those customers.

Certainly. And our next question comes from the line of Ben Reitzes from Melius. Your question, please.

Hey, guys. Thanks a lot. My first question is about seasonality throughout the year. So Dave and Lip-Bu, I mean, you're subseasonal in the first quarter. You said you'd be well above seasonal if you had the supply. So what does that imply for 2Q to 4Q? Should we model that above seasonal, or are the constraints in PC so much that we shouldn't? Thanks.

Yeah, thanks. Yeah, I mean, we would expect to be better than seasonal through the year if we can get the supply to where we think we can as we get into 2Q. So that's correct.

Sure. I wanted to ask about with regard to the hyperscaler situation in servers. In terms of your momentum there, is this mostly driven by hyperscaler, or do you feel like the shortage is mostly impacting them, making you subseasonal, or is the enterprise demand also are you seeing it there? Thanks.

Yeah, I think that may answer that question. I think the hyperscaler is very important for us to scale the business, and I spend a lot of time with the hyperscalers. I think a couple of things.

One clear message from them is the CPU actually is driving a lot of their business in terms of the different workloads they're driving. So I think it's very encouraging to see that they are willing to commit to a long-term agreement to really prioritize their CPU deployment. So that's something that's very positive. And then secondly, I think they are very excited about working with us in terms of besides working on the silicon, the software, and the system-level engagement. And that's something that's also very exciting. So all in all, I think they are very strong. They've shared with us their workload, what they're looking at and what we can help them with. And also the ASIC design is an opportunity for us. They also want to build some of the purpose-built silicon with the Xeon CPU included.

And also they are very interested about overall, how do you use the advanced packaging and then to make it more complete? I think overall, I think it's a great opportunity for us to work with them.

Certainly. And our next question comes from the line of Stacy Rasgon from Bernstein Research. Your question, please.

Hi guys. Thanks for taking my questions. For my first question, I wanted to dig a little bit into the segments. So I mean, if I sort of run the math, like Mobileye is going to be up and the Altera foundry revenues may be close to $200 million. I mean, I need both DCIA and client to be down pretty meaningfully. And if client's down more, I mean, maybe DCIA is down high single digits and client's down like mid-teens.

But I guess number one, is that true? And number two, why should data center be down so much given where the demand is and given where you're prioritizing? Why would I expect data center units to be down? Seems like they have to be down pretty meaningfully in Q1.

Yeah. I mean, both will be down as a function of supply. Obviously, we're shifting as much as we can over to data center to meet the high demand, but we can't completely vacate the client market. So we're trying to support both as best we can and obviously work our way out of this supply issue. I do believe that the first quarter is the trough. We will improve supply in the second quarter.

Part of the challenge is that in the third and fourth quarter of 2025, we lived off of supply, but we also had a reasonable chunk of finished goods inventory to also work through. Unfortunately, that is now down to kind of 40% of what it was at peak levels. So we don't have that to rely on. So it's just literally hand to mouth what we can get out of the fab and what we can get the customers is how we're managing it.

Intel (INTC) Q4 2025 Earnings Call Transcript

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