🏭 What the Company Does
Intel Corporation designs and manufactures semiconductor chips used in PCs, servers, data centers, and emerging AI systems. Unlike many competitors, Intel operates as an Integrated Device Manufacturer (IDM), meaning it both designs chips and manufactures them in its own factories. A major strategic focus is expanding Intel Foundry, which aims to produce chips for external customers in addition to Intel’s own products.
📊 Financial Highlights
- Revenue remained relatively stable through FY2025.
- Operating profitability stayed under pressure due to high manufacturing and restructuring costs.
- Liquidity improved, supported by operating cash flow and external financing.
Plain English: Intel’s sales held steady, but profits remain weak because the company is spending heavily on factories and restructuring.
⚠️ Key Risks
- Intense competition in CPUs, AI accelerators, and semiconductor manufacturing.
- High capital spending with uncertain returns, especially in the foundry business.
- Execution risk in advanced manufacturing, including yields, product timing, and factory utilization.
Plain English: Intel is taking big, expensive bets, and success depends on whether customers adopt its technology and factories run efficiently.
🧭 MD&A Highlights
Management describes FY2025 as a transition year focused on rebuilding competitiveness rather than maximizing short-term profits. Key priorities include executing new manufacturing nodes, managing costs through restructuring, securing foundry customers, and maintaining sufficient liquidity during heavy investment cycles.
Plain English: Intel’s leaders say the company is rebuilding now so it can compete better later.
✅ Takeaway for Beginners
Intel’s FY2025 10-K shows a company in the middle of a long-term transformation. The business is stable but under financial pressure as Intel invests heavily to modernize manufacturing and expand its foundry strategy. For beginners, the core idea is simple: Intel is trading short-term profitability for a chance to regain long-term strength—success depends on execution, customer demand, and disciplined cost control.
Income Statement Summary
| (Unit: $m, EPS in $) | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue (Net revenue) | 54,228 | 53,101 | 52,853 |
| Cost of Goods Sold (Cost of sales) | 32,517 | 35,756 | 34,478 |
| Gross Profit (Gross profit) | 21,711 | 17,345 | 18,375 |
| SG&A (Marketing, general, and administrative) | 5,634 | 5,507 | 4,624 |
| Operating Income (Operating income (loss)) | 93 | (11,678) | (2,214) |
| Non-Operating Income/Expense (Equity gains/losses + Interest and other, net) | 669 | 468 | 3,771 |
| Interest Income/Expense (Interest and other, net) | 629 | 226 | 3,257 |
| Income Before Tax (Income (loss) before taxes) | 762 | (11,210) | 1,557 |
| Income Tax (Provision for (benefit from) taxes) | (913) | 8,023 | 1,531 |
| Net Income (Net income (loss) attributable to Intel) | 1,689 | (18,756) | (267) |
| EPS (Earnings (loss) per share attributable to Intel—diluted) | 0.4 | (4.4) | (0.1) |
Plain English: Revenue was $52,853m in FY2025 versus $53,101m in FY2024, while FY2025 operating results were still negative at ($2,214m). A key FY2025 feature is that Intel reported a large Interest and other, net gain of $3,257m, which helped lift Income Before Tax to $1,557m despite the operating loss. Net income attributable to Intel improved to ($267m) in FY2025 versus ($18,756m) in FY2024, but remained slightly negative.
Key Financial Ratios
| Ratio | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| ROE (%) | 1.5 | (17.9) | (0.2) |
| ROA (%) | 0.9 | (9.5) | (0.1) |
| ROTC (%) | 0.0 | (7.5) | (0.8) |
| ROIC (%) | 0.1 | (13.6) | (0.0) |
| Gross Margin (%) | 40.0 | 32.7 | 34.8 |
| Operating Margin (%) | 0.2 | (22.0) | (4.2) |
| Pretax Margin (%) | 1.4 | (21.1) | 2.9 |
| Net Margin (%) | 3.1 | (35.3) | (0.5) |
| Debt-to-Equity Ratio (D/E) (%) | 44.8 | 47.6 | 36.9 |
| Net Debt / EBITDA (x) | 4.4 | N/M | 3.4 |
| Interest Coverage Ratio (x) | — | — | — |
| Current Ratio (%) | 154.2 | 132.7 | 201.7 |
| Quick Ratio (%) | 101.0 | 58.0 | 130.7 |
| Fixed Asset to Long-term Capital Ratio (%) | 67.4 | 71.3 | 61.8 |
Plain English: FY2025 gross margin improved to 34.8% from 32.7% in FY2024, but operating margin stayed negative at (4.2%). The balance sheet became more liquid in FY2025, with a Current Ratio of 201.7% and a Quick Ratio of 130.7%. Net Debt / EBITDA was 3.4x in FY2025, while FY2024 shows N/M because EBITDA was negative (meaning the ratio is not meaningful in that year). Interest Coverage is shown as — because the income statement line provided is “Interest and other, net”, which does not isolate interest expense needed for a standard coverage calculation.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Intel (INTC) FY 2025 10-K Analysis (Filed 2026) | Explained for Beginners