Intel 2025 Q3 Earnings Remarkable Turnaround as Net Income Surges 125.1%

Intel (INTC), the 71st largest company by market capitalization, delivered a stunning financial reversal in its fiscal 2025 Q3 earnings report, announced November 7, 2025. The results far exceeded expectations, with a net income of $4.27 billion—up from a $16.99 billion loss in 2024 Q3—and guidance for Q4 that reflects sustained demand for AI and cloud solutions.

Revenue

Client Computing Group (CCG) led the charge with $8.54 billion in revenue, followed by the Data Center and AI (DCAI) segment contributing $4.12 billion. Intel Foundry Services added $4.24 billion, while All Other segments totaled $993 million. Intersegment eliminations reduced the consolidated total by $4.23 billion, leaving a final revenue of $13.65 billion—an 8.8% increase from $12.55 billion in the prior year period.

Earnings/Net Income

Intel returned to profitability with EPS of $0.90 in Q3 2025, reversing a $3.88 per share loss in Q3 2024. The net income of $4.27 billion marked a 125.1% improvement from a $16.99 billion net loss. The company’s strategic focus on high-margin segments and cost discipline drove this turnaround, positioning it for long-term growth. The remarkable improvement underscores Intel’s successful operational repositioning.

Post-Earnings Price Action Review

The stock’s post-earnings performance reflected mixed investor sentiment. While shares rose 2.33% in the latest trading day, they declined 4.65% over the subsequent week, indicating short-term volatility. Month-to-date, however, the stock edged up 1.87%, aligning with broader market optimism about AI-driven demand. The recent surge in premarket trading—over 2% on rumors of a potential Tesla partnership—further highlights investor anticipation for Intel’s expanded role in the AI chip market.

[CEO Commentary]

CEO Pat Gelsinger emphasized sustained momentum in data center and AI-driven demand, citing advanced manufacturing capabilities and client innovation as key growth drivers. Strategic investments in next-generation R&D and Foundry expansion are central to capturing long-term semiconductor scaling opportunities. Despite acknowledging supply chain challenges, Gelsinger expressed confidence in operational efficiency gains and closing the performance gap with competitors.

[Guidance]

Intel projects Q4 2025 revenue of $14.2–$14.6 billion and EPS of $0.95–$1.05, reflecting strong demand for AI and cloud solutions. CAPEX is expected to rise 8% year-over-year to $12.5 billion, focusing on advanced node manufacturing and Foundry growth. The CEO reiterated confidence in achieving a 15% operating margin by 2026 through cost discipline and scaling efficiencies.

[Additional News]

Recent developments include speculation about a potential AI chip partnership with Tesla, which could bolster Intel’s position in the AI market. Elon Musk’s remarks at a Tesla shareholder meeting suggested collaboration on autonomous driving and robotics chips, with Intel’s foundry services potentially supporting Tesla’s self-driving ambitions. While no formal agreement exists, the rumors have already driven investor optimism. Analysts’ average price target for Intel stands at $35.04, implying a modest downside from current levels, though GuruFocus estimates a more cautious fair value of $23.64.

[Conclusion]

Intel’s Q3 2025 earnings highlight a strategic and operational resurgence, driven by AI demand and Foundry expansion. With a robust Q4 outlook and potential partnerships in the works, the company appears well-positioned to capitalize on the AI-driven semiconductor boom.