Intel announced that it will raise the price of its CPUs effective March 2026, following a Nikkei report that both Intel and AMD had increased prices. The move is intended to strengthen Intel’s revenue and margin profile by offsetting ongoing supply constraints and supporting the company’s shift toward higher‑margin server CPUs.
The price hike comes after Intel reported Q4 2025 revenue of $13.67 billion, a 4% year‑over‑year decline, and Q1 2025 revenue of $12.7 billion, flat year‑over‑year. Non‑GAAP earnings per share were $0.15 in Q4 2025 versus $0.13 in Q1 2025. Gross margin fell to 36.9% in Q1 2025 from 41.0% a year earlier, and 37.9% in Q4 2025, reflecting the impact of supply constraints and the need for pricing power to maintain profitability.
Segment data show that the Client Computing Group (CCG) revenue declined 8% year‑over‑year to $7.6 billion in Q1 2025, while the Data Center and AI (DCAI) segment grew 8% year‑over‑year to $4.1 billion. In Q4 2025, DCAI grew 9% year‑over‑year to $4.74 billion, offsetting the CCG decline. The growth in DCAI is driven by strong demand for AI infrastructure, whereas the CCG slowdown reflects a broader softening in legacy PC demand.
Management highlighted the supply constraints that prompted the price increase. CFO David Zinsner said that available supply was at its lowest level in Q1 and was expected to improve in Q2, while CEO Lip‑Bu Tan noted that manufacturing yields were still below internal targets. These comments underscore the challenges Intel faces in scaling production of next‑generation technologies while maintaining quality.
Intel’s Q4 2025 earnings beat expectations: earnings per share of $0.15 surpassed the $0.10 estimate by $0.05, a 50% beat, and revenue of $13.67 billion exceeded the $13.39 billion estimate by $0.28 billion, a 2.1% beat. The strong results were largely driven by pricing power in the DCAI segment and disciplined cost management amid supply constraints.
For Q1 2026, Intel guided revenue of $11.7 billion to $12.7 billion, below the consensus of $12.51 billion, and non‑GAAP EPS of $0.00 versus the consensus of $0.05. The cautious guidance reflects ongoing supply constraints, but the planned price hikes are expected to support margin expansion in the near term.
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