Stock Analysis on Net
Stock Analysis on Net

Intel Corp. (NASDAQ:INTC)

Common-Size Income Statement 

Intel Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 27, 2025 Dec 28, 2024 Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Net revenue 100.00 100.00 100.00 100.00 100.00
Cost of sales -65.23 -67.34 -59.96 -57.39 -44.55
Gross profit 34.77% 32.66% 40.04% 42.61% 55.45%
Research and development -26.06 -31.16 -29.59 -27.80 -19.22
Marketing, general and administrative -8.75 -10.37 -10.39 -11.10 -8.28
Restructuring and other charges -4.15 -13.13 0.11 0.00 -3.32
Operating expenses -38.96% -54.66% -39.87% -38.91% -30.82%
Operating income (loss) -4.19% -21.99% 0.17% 3.70% 24.62%
Unrealized losses on marketable equity investments, net -0.59 -0.41 -0.18 -1.31 -0.16
Unrealized gains on non-marketable equity investments, net 0.93 0.17 0.03 0.47 0.95
Impairment charges on non-marketable equity investments -0.57 -0.65 -0.39 -0.30 -0.19
Unrealized gains (losses) on equity investments, net -0.23% -0.89% -0.55% -1.14% 0.59%
Realized gains on sales of equity investments, net 1.20 1.35 0.62 7.91 2.86
Gains on equity investments, net 0.97% 0.46% 0.07% 6.77% 3.45%
Interest income 1.91 2.34 2.46 0.93 0.18
Interest expense -2.06 -1.95 -1.62 -0.79 -0.76
Loss on mark-to-market of Escrowed Shares -3.40 0.00 0.00 0.00 0.00
Gain on divestiture of Altera 10.51 0.00 0.00 0.00 0.00
Other, net -0.79 0.03 0.32 1.70 -0.04
Interest and other, net 6.16% 0.43% 1.16% 1.85% -0.61%
Income (loss) before taxes 2.95% -21.11% 1.41% 12.32% 27.46%
(Provision for) benefit from taxes -2.90 -15.11 1.68 0.39 -2.32
Net income (loss) 0.05% -36.22% 3.09% 12.71% 25.14%
Net (income) loss attributable to non-controlling interests -0.55 0.90 0.03 0.00 0.00
Net income (loss) attributable to Intel -0.51% -35.32% 3.11% 12.71% 25.14%

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).

The common-size income statement reveals a significant shift in profitability and expense management over the five-year period. Initially, the company demonstrated strong gross profit margins, but these eroded substantially, accompanied by increasing operating expenses and fluctuating gains and losses from equity investments. The ultimate result is a dramatic swing from positive net income to a substantial net loss by 2024, followed by a near-breakeven result in 2025.

Revenue and Cost of Sales
Net revenue is consistently represented as 100% throughout the period. However, cost of sales increased significantly as a percentage of revenue, rising from -44.55% in 2021 to -67.34% in 2024, before decreasing slightly to -65.23% in 2025. This increase in cost of sales directly contributed to the decline in gross profit.
Gross Profit and Operating Expenses
Gross profit margin decreased substantially from 55.45% in 2021 to 32.66% in 2024, with a modest recovery to 34.77% in 2025. Simultaneously, operating expenses increased from -30.82% to -54.66% in 2024, before decreasing to -38.96% in 2025. The combined effect of declining gross profit and rising operating expenses resulted in a significant deterioration of operating income.
Operating Income
Operating income experienced a dramatic decline, moving from 24.62% of net revenue in 2021 to a loss of -21.99% in 2024. A slight improvement occurred in 2025, but operating income remained negative at -4.19%.
Equity Investment Gains and Losses
Gains on equity investments were initially a positive contributor to income, at 3.45% of net revenue in 2021. However, these gains became increasingly volatile, with losses in some periods. Unrealized losses on marketable equity investments also increased over time. In 2025, a significant gain on divestiture of Altera (10.51%) and loss on mark-to-market of Escrowed Shares (-3.40%) were observed, indicating a shift in investment strategy or valuation adjustments.
Interest and Other Income
Interest income increased from 0.18% to 2.46% between 2021 and 2023, but remained relatively stable thereafter. Interest expense also increased, partially offsetting the gains from interest income. The net effect of interest and other income shifted from a negative impact to a positive one, peaking at 6.16% in 2025, largely due to the divestiture gain.
Net Income
Net income followed the trend of operating income, declining from 25.14% in 2021 to a substantial loss of -36.22% in 2024. Net income improved marginally in 2025 to 0.05%, indicating a stabilization but not a return to profitability. The provision for taxes also fluctuated significantly, becoming a benefit in some years and a provision in others, reflecting the impact of losses and gains on taxable income.

Overall, the analysis indicates a period of increasing cost pressures, declining gross margins, and volatile investment performance. While some expense control was observed in 2025, the company experienced a significant downturn in profitability, culminating in a substantial loss in 2024. The 2025 results suggest a potential stabilization, but further monitoring is needed to assess the sustainability of this trend.