Lip‑Bu Tan, appointed Intel’s CEO effective March 18, 2025, faced his first earnings call on April 21, inaugurating a critical phase in the company’s turnaround efforts. The backdrop is stark: following a substantial loss in 2024, Tan inherited a business at a crossroads—balancing restructuring with the urgent need to regain momentum in a fiercely competitive chip industry.
In the first quarter of 2025, Intel reported flat revenue at $12.7 billion year-over-year and delivered adjusted earnings-per-share of $0.13—surpassing analyst expectations of just $0.01. The data center segment saw an 8% increase in sales to $4.1 billion, largely fueled by customer pull-ins ahead of anticipated tariff changes.
Despite these promising figures, Intel’s forward-looking guidance triggered investor concern. Projected Q2 revenue of $11.2–12.4 billion fell short of the $12.8 billion analysts were expecting, resulting in a ~7% drop in after-hours trading.
Tan’s remarks during the earnings call emphasized that Q1 was “a step in the right direction,” but he cautioned that no swift resurgence is expected. He outlined immediate steps to streamline organizational structure, cut operating expenses to $17 billion in 2025 (with a further reduction to $16 billion in 2026), and curb capital expenditures—from $20 billion initially targeted to $18 billion. He reaffirmed his pledge to empower engineers by flattening management layers and improving execution.
On the strategic front, Tan is evaluating major shifts in Intel’s foundry business, including a potential withdrawal from marketing its advanced 18A node to external clients. The goal is to reset and better target high-volume clients even if that means narrowing the product scope.
Internally, Tan sent a message to employees praising the Q1 execution and stating that “we delivered revenue, gross margin and EPS above our guidance,” while urging the workforce to align behind the new operating model and cultural reset.
Market reaction has been mixed. While initial investor sentiment was positive—with Intel shares rebounding above the 200-day moving average—the sharp Q2 revenue forecast and external factors like tariffs and possible job cuts (rumored at ~22,000) tempered optimism.
Looking ahead, Tan’s leadership will be judged on executing cost cuts without stifling innovation, reviving Intel’s competitiveness in AI and foundry markets, and navigating global trade uncertainties. The flat Q1 revenue rebound showed initial stability, but the thin margin in both earnings and guidance keeps the stakes high for his turnaround plan.
