INTC · 10-K · 2025A · Full report
Gross Margin Drivers
INTEL CORP · 2026-01-23 · Importance 71 · Surprise 82
Intel's consolidated gross profit increased $1.0 billion in 2025 versus 2024, primarily due to a reduction in asset impairments and accelerated depreciation charges. In 2025 the company recorded $950 million of non-cash impairments and accelerated depreciation related to manufacturing assets determined to have no remaining operational use, compared to $3.3 billion of such charges in 2024. The 2025 gross profit benefit from lower impairments was partially offset by $878 million of higher inventory reserves, primarily related to lower of cost or net realizable value charges for early ramp Intel 18A products. Intel warned that depreciation from construction-in-progress placed into service will increase production costs and could unfavorably affect future gross margin if revenue does not grow to offset those costs.
Key facts
- CCG operating margin was 29% in 2025 and 35% in 2024.
- DCAI operating margin was 20% in 2025 and 9% in 2024.
- Consolidated cost of sales was $34,478 million in 2025, representing 65.2% of net revenue.
- Consolidated gross profit was $18,375 million in 2025, representing 34.8% of net revenue.
- Intel's consolidated gross profit in 2025 increased by $1.0 billion, or 6%, compared to 2024 primarily due to reduction in asset impairments and accelerated depreciation charges.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +11.0% | DCAI operating margin was 20% in 2025 and 9% in 2024. |
| margin | negative | realized | -6.0% | CCG operating margin was 29% in 2025 and 35% in 2024. |
| operating_income | positive | realized | +1.8% | Intel's consolidated gross profit in 2025 increased by $1.0 billion, or 6%, compared to 2024 primarily due to reduction in asset… |