Intel Corp. (NASDAQ:INTC)

The financial data reveals key trends in the operating income, net revenue, and operating profit margin over the years.

Operating Income (Loss)

The operating income exhibits significant fluctuations during the period under review. After a peak of 12,090 million US dollars in 2005, it sharply declined to 5,652 million in 2006, then showed a gradual increase until 2010, reaching 15,588 million. From 2010 to 2017, operating income remained relatively strong, peaking at 23,316 million in 2018. However, a notable decline occurred starting in 2021, with operating income dropping drastically to 2,334 million in 2022, turning slightly positive at 93 million in 2023 before falling into negative territory with a loss of 11,678 million in 2024. This sharp downturn towards the end of the period suggests significant operational challenges or extraordinary expenses impacting profitability.

Net Revenue

Net revenue demonstrated an overall upward trend from 2005 through 2021. Beginning at 38,826 million US dollars in 2005, revenue declined somewhat through 2006 and 2009, reaching a low of 35,127 million in 2009. Thereafter, it showed steady growth, climbing to a peak of 79,024 million by the end of 2021. However, following this peak, revenue decreased considerably in 2022 and remained at lower levels through 2024, with values in the low 50,000s million range. This decline in revenue in recent years may be related to broader market conditions or competitive pressures.

Operating Profit Margin

The operating profit margin followed the pattern of operating income, exhibiting variability over the years. It started at a robust 31.14% in 2005, plummeted to 15.97% in 2006, and then gradually recovered to peak again at 35.73% in 2010. Between 2011 and 2021, margins remained relatively solid, fluctuating between roughly 21% and over 32%. From 2022 onwards, there was a precipitous drop in the operating margin, falling to just 3.7% in 2022, almost negligible at 0.17% in 2023, and turning negative (-21.99%) in 2024. This sharp deterioration aligns with the decline in operating income and suggests increasing costs or diminishing revenues significantly affecting efficiency.

In summary, the company experienced a period of growth and profitability from 2009 to 2021, characterized by rising revenues and strong operating margins. However, starting in 2022, there is clear evidence of financial strain as revenue contracted markedly, operating income plunged, and profitability margins collapsed, culminating in a large operating loss in 2024. This transition suggests recent operational or market difficulties requiring strategic attention.