After nudging slightly higher during today's regular trading session, Intel (INTC +0.13%) stock is heading sharply lower in after-hours trading this afternoon. While the company reported strong fourth-quarter 2025 financial results, management's outlook for the first quarter of 2026 is prompting bears to click the sell button on the tech stalwart.
As of 4:40 p.m., shares of Intel are down 6.7% from their closing price of $54.32 during today's regular market session.
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Better-than-expected Q4 2025 results aren't outshining a disappointing Q1 2026 outlook
In addition to reporting fourth-quarter 2025 financial results, Intel provided investors with its expectations for the first quarter of 2026. Whereas the consensus among analysts is that the company will report revenue of $12.55 billion and adjusted earnings per share (EPS) of $0.05, management's expectations are more tempered. The company projects Q1 2026 revenue and adjusted EPS of $11.7 billion to $12.7 billion and $0.00, respectively.
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Key Data Points
With respect to the recently completed quarter, Intel posted Q4 2025 sales of $13.7 billion -- better than the $13.39 billion that analysts had anticipated the company reporting on the top line. At the bottom of the income statement, Intel reported adjusted EPS of $0.15, surpassing analysts' expectations of $0.08.
Suggesting that presumed challenges in the first quarter of 2026 will not persist through the entire year, David Zinsner, Intel's chief financial officer, stated in today's press release, "We expect our available supply to be at its lowest level in Q1 before improving in Q2 and beyond."
Is the late afternoon stock drop a sign that investors should sell Intel stock?
Shares of Intel are currently trading at 904 times trailing earnings -- a rich valuation for a well-established company. While those with lengthy investing horizons would be wise to consider a position in this tech powerhouse, others seeking a value opportunity should watch for shares to plunge further before considering a position or consider a separate investment opportunity, such as a tech exchange-traded fund (ETF) that includes Intel among its holdings.
