- INTC shares fell more than 17% on Friday after a quarterly report and weak guidance.
- Intel forecast first-quarter 2026 revenue at a $12.2 billion midpoint, below the roughly $12.6 billion analysts expected.
- The company guided first-quarter earnings per share to $0, under an approximate $0.08 estimate.
- For Q4 2025, Intel posted EPS of $0.15 and revenue of $13.7 billion, both above expectations despite a 4% year-over-year revenue decline.
- Executives warned that severe supply-chain constraints will significantly limit production in the first quarter of 2026, and CEO Lip-Bu Tan emphasized the company’s AI and CPU priorities.
After Thursday’s earnings report, Intel saw its stock drop sharply, falling more than 17% on Friday as the company warned of weaker first-quarter results and production limits tied to supply-chain issues. The move followed an over-10% after-hours decline on Thursday when the guidance was first released.
Management set first-quarter 2026 revenue guidance at a midpoint of $12.2 billion, below the roughly $12.6 billion analysts had projected. The company also forecast earnings per share of $0 for the period, under an estimated $0.08, driving the market reaction.
Executives said severe supply-chain constraints will critically hamper production in the first quarter of 2026, a factor they cited as central to the lowered revenue and EPS outlook. The company’s guidance reset expectations for near-term growth and output.
Despite the weak forward view, Intel reported a solid fourth quarter for 2025, with earnings per share of $0.15 and revenue of $13.7 billion, a 4% decline from the prior year but above expectations. CEO Lip-Bu Tan credited rising AI demand for stronger chip and CPU sales and stressed strategic priorities.
“Our conviction in the essential role of CPUs in the AI era continues to grow,” Tan said. “Our priorities are clear: sharpen execution, reinvigorate engineering excellence, and fully capitalize on the vast opportunity AI presents across all of our businesses.”
Year-to-date, INTC had climbed more than 30% before the drop and is now up roughly 21%. The company says it expects to be a top AI stock option in 2026.
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