Intel Reports Q3 2025 Earnings With Major Government Funding
Intel Corporation announced its third-quarter 2025 financial results, marking a return to profitability after a challenging year with revenue reaching 13.7 billion dollars. The semiconductor manufacturer reported net income of 4.1 billion dollars, a dramatic turnaround from the 16.6 billion dollar loss recorded in the same period last year. The results come as the company secures substantial funding from the Trump Administration and major strategic investments from industry partners.
The chipmaker posted revenue of 13.7 billion dollars for the quarter ending September 27, 2025, representing a 3 percent increase compared to the 13.3 billion dollars reported in the third quarter of 2024. The company generated 2.5 billion dollars in cash from operations during the period. Operating margin improved significantly to 5.0 percent from negative 68.2 percent in the prior year quarter, reflecting improved execution across business units.
Intel secured 8.9 billion dollars in funding from the United States Government through an agreement with the Trump Administration to support expansion of American technology and manufacturing capabilities. The company received 5.7 billion dollars from the government during the third quarter. This funding is part of broader efforts to strengthen domestic semiconductor production and maintain technological leadership in advanced manufacturing.
The company also announced a major collaboration with NVIDIA to jointly develop multiple generations of custom data center and personal computer products across hyperscale, enterprise and consumer markets. The partnership will integrate Intel processor technologies and the x86 ecosystem with NVIDIA artificial intelligence and accelerated computing platforms using NVIDIA NVLink interconnect technology. NVIDIA agreed to invest 5.0 billion dollars in Intel common stock as part of the collaboration.
SoftBank Group made a separate 2.0 billion dollars investment in Intel common stock during the quarter. The investment reflects confidence that Intel will play a critical role in expanding advanced semiconductor manufacturing capacity and supply chains within the United States. These strategic investments provide Intel with increased operational flexibility and demonstrate the company position in the technology ecosystem.
The Client Computing Group reported 8.5 billion dollars in revenue, up 5 percent year over year, while the Data Center and AI segment generated 4.1 billion dollars, down 1 percent compared to the prior year period. Intel Foundry revenue reached 4.2 billion dollars, a 2 percent decrease from the previous year. Total Intel Products revenue increased 3 percent to 12.7 billion dollars.
Intel unveiled the architecture of its Core Ultra series 3 processors, code-named Panther Lake, which represent the first client systems on chip built using Intel 18A manufacturing technology. The company provided details on Xeon 6 Plus processors, code-named Clearwater Forest, representing the next generation server product on Intel 18A technology with significant power and performance improvements. Intel also announced a new inference-optimized graphics processing unit code-named Crescent Island designed for token generation and enterprise-level inference workloads.
Fab 52, Intel fifth high-volume fabrication facility at its Ocotillo campus in Chandler, Arizona, became fully operational during the quarter. The facility manufactures Intel 18A wafers, described as the most advanced logic wafers developed and produced in the United States. The facility is part of more than 100 billion dollars Intel is investing to expand domestic manufacturing operations.
The company completed the sale of 51 percent of Altera, previously a wholly owned subsidiary, receiving 5.2 billion dollars along with proceeds from a stake sale in Mobileye. Altera was deconsolidated from Intel consolidated financial statements effective September 12, 2025. The divestitures are part of Intel strategy to strengthen its balance sheet and focus resources on core business priorities.
Intel provided guidance for the fourth quarter of 2025 with expected revenue between 12.8 billion dollars and 13.8 billion dollars. The company projects a gross margin of 34.5 percent on a GAAP basis and 36.5 percent on a non-GAAP basis. Diluted earnings per share are expected to be negative 0.14 dollars on a GAAP basis and positive 0.08 dollars on a non-GAAP basis.
The company noted that its transactions with the United States Government during the third quarter, including equity issuances and amendments to the commercial CHIPS Act agreement, are complex with limited accounting precedent. Intel has initiated consultation with the Securities and Exchange Commission staff regarding the appropriate accounting treatment. Due to the government shutdown, Intel has been unable to conclude this consultation. The company stated that financial results presented are preliminary and unaudited and may be revised based on SEC staff feedback.
Intel employed 88,400 people as of September 27, 2025, down from 124,100 employees in the same period last year. The reduction includes approximately 3,300 Altera employees excluded following the divestiture and employees from the NAND memory business divested to SK hynix. The company implemented restructuring plans during 2024 and 2025 primarily focused on workforce reductions and facility consolidations.
