INTC · 10-K · 2025A · Full report

CCG Profitability Pressures

INTEL CORP · 2026-01-23 · Importance 72 · Surprise 74

CCG operating income decreased $2.3 billion in 2025 versus 2024, driven by $2.9 billion of unfavorable impacts that included $1.8 billion lower product profit from reduced revenue and higher client unit costs driven by a greater mix of newer-generation products. The segment also incurred $1.1 billion of higher period charges related to increased inventory reserves (lower of cost or net realizable value) and other costs. These headwinds were partially offset by $590 million of lower operating expenses, largely from payroll reductions under the 2025/2024 Restructuring Plans. The mix shift to newer products and elevated inventory reserves materially pressured CCG margins in 2025.

Key facts

• CCG operating income decreased $2.3 billion from 2024 to 2025, primarily due to $1.8 billion of lower 2025 product profit and $1.1 billion of higher 2025 period charges.
• CCG experienced $1.8 billion of lower 2025 product profit due to lower revenue and higher client unit costs from increased mix of newer generation products.

Impact estimates