Intel’s Q4 2025 Earnings Focus on Cost Cuts, 18A Process

Intel’s Q4 2025 earnings report reveals a strategic shift under new CEO Lip-Bu Tan, focusing on cost reduction and the 18A process. The company reported a $0.15 profit, driven by significant layoffs and efficiency improvements, marking a temporary halt to financial losses. However, revenue continues to decline year-over-year, indicating that profitability gains are primarily from cost savings rather than revenue growth.

Intel’s gross margin improved to 38%, yet remains below historical levels. The company’s cash flow situation has stabilized, with $37.4 billion in cash and short-term investments, aided by strategic moves like selling Mobileye equity and securing a $5 billion investment from NVIDIA. The 18A process, crucial for Intel’s future, is expected to lead in power supply technology by 2026, potentially attracting major clients like Apple and Qualcomm.