Intel Plunges 5.68% on Weak Q2 Outlook

Intel's stock price dropped by 5.68% in pre-market trading on April 25, 2025, following the release of its first-quarter earnings report. The company exceeded expectations for both revenue and earnings per share (EPS), but a disappointing outlook for the second quarter sent shares plummeting.

Intel reported adjusted EPS of $0.13 on revenue of $12.7 billion for the first quarter, surpassing analyst estimates of $0.01 EPS on revenue of $12.3 billion. However, the company's forecast for the second quarter, with revenue expected to be between $11.2 billion and $12.4 billion, fell short of Wall Street's expectations of $12.8 billion. This discrepancy, along with the company's acknowledgment of elevated uncertainty in the current macro environment, contributed to the stock's decline.

Intel's new CEO, Lip-Bu Tan, addressed the company's challenges during his first public comments at Intel Vision 2025. He acknowledged the need for improved innovation and adaptation, stating that the company has fallen behind in meeting customer needs. Tan's remarks came as Intel prepares for potential fallout from trade tensions with China, which could impact the company's operations and supply chain.

In addition to the weak forecast, Intel announced significant layoffs, which further rattled investor confidence. The combination of a disappointing outlook and job cuts has raised concerns about the company's future prospects and its ability to navigate the current economic climate. Despite the short-term boost from the Q1 beat, the overall sentiment remains cautious as investors await more clarity on Intel's strategic direction under its new leadership.