Intel Report First quarter results On Thursday, this beat analyst estimates while releasing disappointing guidance and announcing plans to cut spending in the coming year, the first CEO of Lip-Bu Tan. Stocks are extended trading.

Compared to the LSEG consensus estimate, this is the company’s performance:

• Earnings per share: 13 cents, adjusted estimation 1%
• income: $12.67 billion vs. $12.3 billion

Intel said it expects revenue for the midpoint of the range to be $11.8 billion for the quarter, down from the average analyst estimate of $12.82 billion. The company said revenue would be break-even, while analysts are looking for profits of 6 cents per share.

Intel said its second-quarter guidance reflects a rise in uncertainty driven by the macro environment.

“Moving trade policies in the U.S. and elsewhere and regulatory risks increase the chances of economic slowdowns, the likelihood of a recession growing,” Intel CFO David Zinsner said in a earnings call with analysts.

In the first quarter, Intel reported a net loss of $800 million, at 19 cents per share, due to higher costs of sales and some declines. By comparison, net loss was $400 million, 9 cents per share In 2024.

It was the first earnings report since Tan took over as CEO in March after Pat Gelsinger resigned in December under pressure from board members and investors. Gelsinger’s tenure is due to the emphasis that the company cannot effectively compete in AI competition and its efforts to enter the semiconductor manufacturing industry for other companies, including competitors.

“Q1 is a step in the right direction, but there are no quick solutions as we work to restore our path to gain market share and drive sustainable growth,” Tan said in a statement.

Intel said it plans to cut operational and capital expenses and eliminate management to improve efficiency. The company said it expects operating expenses to be $17 billion in 2025, down from its previous $17.5 billion target, and that target will be $18 billion in 2025, down from its previous $20 billion target.

Intel said it did not include restructuring fees in its guidance. Zinsner Telling CNBC’s Kristina Partinevelos that reducing operating expenses will include layoffs, especially for managers, but Intel has not completed the cuts yet.

“These key changes will reduce the size of our workforce, which is the fact that we cannot reduce the size of our workforce,” Tan said in a memo for employees published on Intel’s website. He said the cuts will begin this quarter.

Intel investors hope Tan can reverse a company that has lost market share in its core processor business and has no competition with AI chips Nvidiait dominates the rapidly growing industry.

Tan has already started shaping his team last week, naming network chief Sachin Katti as AI’s chief technology officer and head, leading Intel’s overall AI strategy and product launch program. In a memo Thursday, Tan said Intel employees will work in the office four days a week until September.

Intel’s Data Center Group reported sales of $4.1 billion, an increase of 8% from the same period last year. Intel said it has merged it into a data center organization with Katti-led network and edge computing groups.

Customer Computing Group reported another large business of the company, namely the chips of PCs. Revenue fell 8% per year to $7.6 billion.

Intel’s emerging foundry business reported $4.7 billion in revenue, although most of these sales came from other Intel departments to produce its chips.

watch: Intel and the improvement of uncertainty