Intel (NASDAQ: INTC) reported $13.7 billion in revenue for Q4 2025, a 4% decline compared with the same period last year. For the full year, revenue remained roughly flat, reflecting a mix of challenges in client computing and stronger growth in the data center and AI markets.
Balancing Client and Data Center Demand
Intel is redirecting much of its internal wafer supply to the Data Center and AI (DCAI) segment while relying on external suppliers for its Client Compute Group (CCG). CFO David Zinsner noted that, while the company is heavily focused on data center demand, it cannot step away from the consumer and enterprise client markets.
“We’re moving as much as we can to support the data center, but the client market remains important,” Zinsner said. CEO Lip-Bu Tan highlighted broader industry challenges, including memory shortages and rising component prices.
Panther Lake and Core Ultra Series 3
The spotlight in Q4 was on Panther Lake, now branded as the Core Ultra Series 3, which is set to reach customers on January 27, 2026. Intel says its client CPU inventory is tight, and higher component costs could limit growth in the consumer segment this year.
Looking ahead, Intel confirmed that its next-generation Nova Lake desktop CPUs remain on track for a late 2026 release. Nova Lake will compete with AMD’s Zen 6 desktop processors and will be Intel’s first desktop CPU using the 18A process. Its follow-up, the 14A node, is expected to enter risk production in late 2027, with full production in 2028.
18A Process and Yields
Intel has shipped some 18A chips, but yields remain below the company’s internal expectations. Tan said yields are improving month over month by 7% to 8%, which should help lower per-unit costs over time.
Business Unit Performance
- CCG: Revenue fell 7% in Q4 to $8.2 billion, pulling full-year CCG revenue down 3%.
- DCAI: Revenue grew 9% to $4.7 billion in the quarter, reaching $16.9 billion for the full year, a 5% increase. Growth is solid but slower than competitors, with AMD posting 22% year-over-year data center growth in Q3 2025 and Nvidia seeing 66% year-over-year growth.
- Intel Foundry Services: Revenue rose 4% year-over-year, but operating margin was negative at -55.7%, translating to $2.5 billion in losses.
- All Other Segment: Revenue fell 48% year-over-year to a loss of $8 million, mainly due to the deconsolidation of Intel’s former FPGA subsidiary, Altera, in September 2025.
Looking Ahead
Intel is balancing strong demand from AI and data center workloads with a constrained client market. Panther Lake and Nova Lake show Intel’s continued commitment to consumer and desktop computing, but supply limitations and higher component prices may cap growth. Meanwhile, data center and AI remain the fastest-growing parts of Intel’s business, even if competitors are currently outpacing Intel in expansion
