Intel Faces Challenges Ahead of Upcoming Earnings Report

Santa Clara, California – Intel Corporation is set to report its first-quarter 2025 earnings on April 24, after the closing bell. The Zacks Consensus Estimate predicts sales at $12.32 billion and earnings at one penny per share.

Over the past 60 days, estimates for Intel’s earnings per share have dropped from 48 cents to 47 cents for 2025, and from $1.13 to $1.12 for 2026. The company has seen a negative earnings surprise of 366.64% on average over the last four quarters, beating estimates only twice. The last reported quarter showed an earnings surprise of 8.33%.

According to industry experts, Intel’s earnings model hints at a possible earnings beat for the first quarter. This forecast benefits from a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #3 (Hold).

During the recent quarter, Intel launched new AI solutions, aiming to simplify AI integration across various sectors, including manufacturing and smart cities. The company introduced Intel Xeon 6 processors designed to meet the growing demand for AI workloads, promising significant performance improvements.

Intel also made headway in the defense sector by gaining two new customers under the U.S. Government’s Rapid Assured Microelectronics Prototypes initiative. These advancements could positively affect Intel’s financial results in the upcoming earnings report.

However, Intel continues to lag behind competitors like NVIDIA Corporation and Advanced Micro Devices, Inc. in key markets, particularly in artificial intelligence and commercial PCs. The company is also facing declining trends in its Client Computing Group, with revenues projected at $6.85 billion, reflecting an 8.5% year-over-year decline.

China remains a significant market for Intel, but Beijing’s initiatives to reduce dependence on Western technology raise concerns for the company’s future in the region.

Over the past year, Intel’s stock has decreased by 45%, contrasting sharply with industry growth of 10.3%. This dip highlights the challenges the company faces in a competitive landscape.

Despite these hurdles, Intel’s plans to focus on core operations and innovative AI solutions present potential growth avenues. The company’s strategic collaborations and advancements in technology indicate a commitment to improving its market position.

As investors await the earnings report, Intel’s upcoming results will be pivotal in determining the company’s trajectory amid increasing competition and global market challenges.