Shares of Intel (ticker INTC) fell about 17% on Friday after earnings. The company posted stronger fourth-quarter results but gave weak Q1 2026 guidance.
Intel forecast first-quarter revenue at a $12.2 billion midpoint, below the $12.6 billion analysts tracked by Bloomberg expected. It guided EPS of $0, under the roughly $0.08 estimate.
Executives warned severe supply chain constraints will curb production in the first quarter of 2026. They said revenue would sit at a $12.2 billion midpoint and earnings would fall to breakeven.
Intel posted Q4 EPS of $0.15, ahead of the $0.09 estimate. Quarterly revenue was $13.7 billion, down about 4% year over year but above $13.4 billion expected.
Lip-Bu Tan credited rising AI demand for strength in chips and CPU sales. He said “Our conviction in the essential role of CPUs in the AI era continues to grow.”
Year to date, INTC had risen over 30% before the recent drop. After the decline, the stock is up about 21% for the year.
