Intel reported fourth-quarter earnings that exceeded Wall Street expectations but provided a soft guidance for the current quarter, causing shares to drop by 13% in after-hours trading. The chipmaker’s adjusted earnings per share were 15 cents, beating the expected 8 cents, and revenue was $13.7 billion, higher than the estimated $13.4 billion.

For the first quarter, Intel forecasted revenue between $11.7 billion and $12.7 billion with breakeven adjusted earnings per share, falling short of expectations. The company attributed the soft guidance to supply constraints affecting seasonal demand, but expects supply to improve in the second quarter.

CEO Lip-Bu Tan mentioned plans to enhance production efficiency to increase supply of Intel’s products, as the company aims to meet strong customer demand. Intel’s net loss was $600 million, or 12 cents per diluted share, compared to a net loss of $100 million, or 3 cents per share, in the previous year.

Investor optimism surrounding Intel has been driven by potential anchor customers for its foundry business, with the stock surging 147% in the past year. The company’s 18A manufacturing technology over-delivered in 2025, indicating readiness for volume production of products like the Core Ultra Series 3 central processor.

Intel’s foundry revenue was $4.5 billion, with expectations for customer adoption of the 14A technology in the second half of the year. Additionally, strong sales of server chips for artificial intelligence infrastructure drove Data Center and AI sales to $4.7 billion, while Client Computing Group sales for laptop chips were down 7% to $8.2 billion.

Read more at CNBC: Intel (INTC) earnings report Q4 2025