Intel reports first-quarter 2023 financial results

  • First-quarter revenue of $11.7 billion, down 36% year over year (YoY).
  • First-quarter GAAP earnings (loss) per share (EPS) attributable to Intel was $(0.66); non-GAAP EPS attributable to Intel was $(0.04).
  • Forecasting second-quarter 2023 revenue of $11.5 billion to $12.5 billion; expecting second-quarter EPS of $(0.62); non-GAAP EPS of $(0.04).

Santa Clara, California – Intel Corporation today reported first-quarter 2023 financial results.

“We delivered solid first-quarter results, representing steady progress with our transformation,” said Pat Gelsinger, Intel CEO. “We hit key execution milestones in our datacentre roadmap and demonstrated the health of the process technology underpinning it. While we remain cautious on the macroeconomic outlook, we are focused on what we can control as we deliver on IDM 2.0: driving consistent execution across process and product roadmaps and advancing our foundry business to best position us to capitalise on the $1 trillion market opportunity ahead.”

David Zinsner, Intel CFO, said, “We exceeded our first-quarter expectations on the top and bottom line, and continued to be disciplined on expense management as part of our commitment to drive efficiencies and cost savings. At the same time, we are prioritising the investments needed to advance our strategy and establish an internal foundry model, one of the most consequential steps we are taking to deliver on IDM 2.0.”

Q1 2023 Financial Highlights






Q1 2023

Q1 2022

vs. Q1 2022


Q1 2023

Q1 2022

vs. Q1 2022

Revenue ($B)



down 36%





Gross Margin



down 16.2 ppts




down 14.7 ppts

R&D and MG&A ($B)



down 11%




down 13%

Operating Margin



down 36.2 ppts




down 25.6 ppts

Tax Rate







Net Income (loss) Attributable to Intel ($B)



down 134%




down 105%

Earnings (loss) Per Share  Attributable to Intel



down 133%




down 105%

In the first quarter, the company used $(1.8) billion in cash from operations and paid dividends of $1.5 billion.

Business Unit Summary

Intel previously announced the organisational change to integrate its Accelerated Computing Systems and Graphics Group into its Client Computing Group and Data Center and AI Group. This change is intended to drive a more effective go-to-market capability and to accelerate the scale of these businesses, while also reducing costs. As a result, the company modified its segment reporting in the first quarter of 2023 to align to this and certain other business reorganisations. All prior-period segment data has been retrospectively adjusted to reflect the way the company internally receives information and manages and monitors operating segment performance starting in fiscal year 2023.

Business Unit Revenue and Trends


Q1 2023


vs. Q1 2022


Client Computing Group (CCG)


$5.8 billion





Data Center and AI (DCAI)


$3.7 billion





Network and Edge (NEX)


$1.5 billion







$458 million





Intel Foundry Services (IFS)


$118 million





Business Highlights


▪       Intel continues to be on track to meet its goal of achieving five nodes in four years, with two of the five nodes nearly complete. Intel 7 is in high-volume manufacturing and CCG's Meteor Lake product on Intel 4 is ramping production wafer starts for an expected launch in the second half of 2023. Intel 3, Intel 20A, and Intel 18A remain on track.

▪       DCAI shipped its 4th Gen Intel® Xeon® Scalable processors (code-named Sapphire Rapids), a critical part of Intel’s heterogeneous hardware and software portfolio to accelerate real-world workloads, including AI, as it looks to truly democratise AI through an open and secure ecosystem approach.

▪       DCAI also announced it expects to deliver Intel’s 5th Gen Xeon Scalable processor, Emerald Rapids, later this year. In addition, the business narrowed the delivery window for Sierra Forest, which is expected to ship to customers in the first half of 2024, with Granite Rapids expected to follow shortly thereafter. Clearwater Forest, the follow-on to Sierra Forest, is expected to ship in 2025, and will be manufactured on Intel 18A, the node designed to achieve process leadership and representing the culmination of the company’s five-nodes-in-four-years strategy. Additionally, the Programmable Solutions Group (PSG) had an all-time record revenue quarter in Q1.

▪       IFS and Arm announced a multigeneration agreement to enable chip designers to build low-power compute system-on-chips (SoCs) on the Intel 18A process. Intel delivered and supplied the first multi-chip package (MCP) prototypes created under the U.S. Department of Defense’s State-of-the-Art Heterogeneous Integrated Packaging (SHIP) program to BAE Systems six quarters ahead of schedule, showcasing the company’s commitment to customers while further supporting the DOD’s mission to return the U.S. to a leading role in the microelectronics ecosystem.

▪       CCG introduced the 13th Gen Intel® Core™ mobile processor family, led by the launch of the first 24-core processor for a laptop and world’s fastest mobile processor. Intel also introduced the new Intel vPro® platform powered by the full lineup of 13th Gen Intel Core processors. In 2023, the expansive commercial portfolio is expected to deliver more than 170 notebooks, desktops, and entry workstations from partners including Acer, ASUS, Dell, HP, Lenovo, Fujitsu, Panasonic, and Samsung Electronics.

▪       NEX launched its 4th Gen Intel Xeon Scalable processors with Intel® vRAN Boost, delivering two times the capacity gains generation-over-generation within the same power envelope1 and up to an additional 20% power savings2 with integrated acceleration, with extensive industry support from Ericsson, Verizon, Telefonica, and Vodafone, among many others.

▪       Mobileye continues to grow significantly faster than underlying automotive end-markets, achieving record first quarter revenue.

Business Outlook

Intel's guidance for the second quarter of 2023 includes both GAAP and non-GAAP estimates. Reconciliations between GAAP and non-GAAP financial measures are included below.*

Q2 2023












$11.5-12.5 billion


$11.5-12.5 billion^

Gross margin





Tax rate





Earnings (loss) per share attributable to Intel - diluted






Actual results may differ materially from Intel’s Business Outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

*Effective January 2023, Intel increased the estimated useful life of certain production machinery and equipment from five years to eight years. When compared to the estimated useful life in place as of the end of 2022, we expect total depreciation expense in 2023 to be reduced by $4.1 billion. We expect this change will result in an approximately $2.3 billion increase to gross margin, a $400 million decrease in R&D expenses, and a $1.4 billion decrease in ending inventory values. Intel’s Q2 2023 outlook includes an approximately $500 million benefit to operating margin or $0.10 benefit to EPS from this change, split approximately 80% to cost of sales and 20% to operating expenses. The change in depreciable life will not be counted toward the $3 billion in cost savings in 2023 or the $8 billion to $10 billion exiting 2025 communicated at Q3 2022 earnings.  

Earnings Webcast

Intel will hold a public webcast at 2 p.m. PST today to discuss the results for its first quarter 2023. The live public webcast can be accessed on Intel's Investor Relations website at The corresponding earnings presentation and webcast replay will also be available on the site.

Forward-Looking Statements

This release contains forward-looking statements that involve a number of risks and uncertainties. Words such as "accelerate," "achieve," "aim," "ambitions," "anticipate," "believe," "committed," "continue," "could," "designed," "estimate," "expect," "forecast," "future," "goals," "grow," "guidance," "intend," "likely," "may," "might," "milestones," "next generation," "objective," "on track," "opportunity," "outlook," "pending," "plan," "position," "potential," "possible," "predict," "progress," "ramp," "roadmap," "seeks," "should," "strive," "targets," "to be," "upcoming," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements, which may include statements regarding:

•       our business plans and strategy and anticipated benefits therefrom, including our IDM 2.0 strategy, our partnership with Brookfield, the transition to an internal foundry model, and updates to our reporting structure;

•       projections of our future financial performance, including future revenue, gross margins, capital expenditures, and cash flows;

•       projected costs and yield trends;

•       future cash requirements and the availability, uses, sufficiency, and cost of capital resources, and sources of funding, including future capital and R&D investments, credit rating expectations, and expected returns to stockholders such as stock repurchases and dividends;

•       future products, services and technologies, and the expected goals, timeline, ramps, progress, availability, production, regulation and benefits of such products, services and technologies, including future process nodes and packaging technology, product roadmaps, schedules, future product architectures, expectations regarding process performance, per-watt parity, and metrics and expectations regarding product and process leadership;

•       investment plans, and impacts of investment plans, including in the US and abroad;

•       internal and external manufacturing plans, including future internal manufacturing volumes, manufacturing expansion plans and the financing therefor, and external foundry usage;

•       future production capacity and product supply;

•       supply expectations, including regarding constraints, limitations, pricing, and industry shortages;

•       plans and goals related to Intel’s foundry business, including with respect to future manufacturing capacity and foundry service offerings, including technology and IP offerings;

•       expected timing and impact of acquisitions, divestitures, and other significant transactions, including statements relating to the completion of our acquisition of Tower Semiconductor Ltd. and the sale of our NAND memory business;

•       expected completion and impacts of restructuring activities and cost-saving or efficiency initiatives, including those related to the 2022 Restructuring Program;

•       future social and environmental performance, goals, measures and strategies;

•       our anticipated growth, future market share, and trends in our businesses and operations;

•       projected growth and trends in markets relevant to our businesses, including total addressable market (TAM);

•       anticipated trends and impacts related to industry component, substrate, and foundry capacity utilization, shortages and constraints;

•       expectations regarding government incentives;

•       future technology trends;

•       future macro environmental and economic conditions, including regional or global downturns or recessions;

•       future responses to and effects of COVID-19, including as to manufacturing, transportation and operational restrictions and disruptions and broader economic conditions;

•       geopolitical conditions, including the impacts of Russia's war on Ukraine;

•       tax- and accounting-related expectations;

•       expectations regarding our relationships with certain sanctioned parties;  and

•       other characterisations of future events or circumstances.

Such statements involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including:

•       changes in demand for our products;

•       changes in product mix;

•       the complexity and fixed cost nature of our manufacturing operations;

•       the high level of competition and rapid technological change in our industry;

•       the significant upfront investments in R&D and our business, products, technologies, and manufacturing capabilities;

•       vulnerability to new product development and manufacturing-related risks, including product defects or errata, particularly as we develop next generation products and implement next generation process technologies;

•       risks associated with highly complex global supply chain, including from disruptions, delays, trade tensions, or shortages;

•       sales-related risks, including customer concentration and the use of distributors and other third parties;

•       potential security vulnerabilities in our products;

•       cybersecurity and privacy risks;

•       investment and transaction risk;

•       IP risks and risks associated with litigation and regulatory proceedings;

•       evolving regulatory and legal requirements across many jurisdictions;

•       geopolitical and international trade conditions;

•       our debt obligations;

•       risks of large scale global operations;

•       macroeconomic conditions;

•       impacts of the COVID-19 or similar such pandemic; and

•       other risks and uncertainties described in this release, our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission (SEC).

Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this release and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business.

Unless specifically indicated otherwise, the forward-looking statements in this release do not reflect the potential impact of any divestitures, mergers, acquisitions, or other business combinations that have not been completed as of the date of this release. In addition, the forward-looking statements in this release are based on management's expectations as of the date of this release, unless an earlier date is specified, including expectations based on third-party information and projections that management believes to be reputable. We do not undertake, and expressly disclaims any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

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