Intel Corp. (NASDAQ:INTC)

The profitability ratios demonstrate a consistent decline in financial performance over the observed period, followed by some stabilization and then renewed decline. Initially, margins and returns exhibited strength, but a clear downward trajectory emerges, particularly in operating and net profit margins. While there are some instances of marginal improvement, the overall trend indicates increasing pressure on profitability.

Gross Profit Margin

The gross profit margin experienced a steady decrease from 54.32% in April 2022 to a low of 29.76% in March 2025. A slight recovery is noted in subsequent quarters, reaching 35.58% and 34.77% in September and December 2025, respectively. This suggests potential challenges in maintaining pricing power or increasing efficiency in production costs.

Operating Profit Margin

A significant deterioration is evident in the operating profit margin. Starting at 25.87% in April 2022, it falls into negative territory by April 2023 (-6.16%) and reaches its lowest point at -21.99% in December 2024. A modest recovery to -4.19% by December 2025 is observed, but remains substantially below the initial levels. This indicates increasing operating expenses relative to revenue.

Net Profit Margin

The net profit margin mirrors the trend of the operating profit margin, exhibiting a substantial decline from 31.68% in April 2022 to -38.64% in March 2025. Similar to the operating margin, a slight improvement is seen in the later quarters, reaching -0.51% by December 2025. This suggests that factors beyond core operations, such as financing costs or taxes, are also contributing to the reduced profitability.

Return on Equity (ROE)

ROE follows a similar pattern of decline, decreasing from 23.87% in April 2022 to -20.95% in March 2025. A minor recovery to 0.19% in September 2025 and a further decline to -0.23% in December 2025 is observed. This indicates a diminishing ability to generate profits from shareholder investments.

Return on Assets (ROA)

ROA also demonstrates a consistent downward trend, falling from 13.96% in April 2022 to -10.65% in March 2025. A slight improvement to 0.10% in September 2025 is followed by a further decline to -0.13% in December 2025. This suggests a decreasing efficiency in utilizing assets to generate profits.

In summary, the observed trends across all profitability ratios point to a weakening financial position. While there are limited signs of stabilization in the most recent quarters, the overall performance remains significantly below the levels recorded at the beginning of the analyzed period. Continued monitoring of these ratios is crucial to assess the effectiveness of any implemented corrective measures.

The gross profit margin exhibited a clear downward trend over the observed period, beginning in April 2022 and reaching a low point in September 2024, before showing some recovery in subsequent quarters. Initial values were relatively high, but consistently declined through the end of 2023. A slight stabilization occurred in the first half of 2024, followed by a significant drop, and then a partial rebound towards the end of the period.

Initial Decline (Apr 2, 2022 – Dec 31, 2022)

The gross profit margin began at 54.32% in April 2022 and steadily decreased to 42.61% by December 2022. This represents a substantial reduction over four quarters, indicating increasing costs relative to revenue or potentially pricing pressures.

Continued Erosion and Stabilization (Apr 1, 2023 – Jun 29, 2024)

The downward trend continued into the first half of 2023, bottoming out at 38.27% in July 2023. The margin remained relatively stable between 38% and 41.5% for the next four quarters, suggesting that cost pressures or pricing dynamics had reached a temporary equilibrium. However, this stability was short-lived.

Significant Drop and Partial Recovery (Sep 28, 2024 – Dec 27, 2025)

A sharp decline occurred in September 2024, with the gross profit margin falling to 34.67%. This was followed by a further decrease to 32.66% in December 2024, representing the lowest point in the observed period. Subsequently, the margin began to recover, reaching 35.58% in September 2025 and 34.77% in December 2025. This recovery, while notable, did not return the margin to levels seen earlier in the period.

The fluctuations in gross profit margin suggest a dynamic relationship between revenue and the cost of goods sold. The initial decline and subsequent low points may be attributable to factors such as increased input costs, changes in product mix, or intensified competition. The recent recovery indicates potential improvements in cost management or pricing strategies, but further monitoring is necessary to determine if this trend will be sustained.

The gross profit figures themselves generally followed the trend of the gross profit margin, decreasing overall, but with some quarterly variations. The largest gross profit values occurred in the earlier periods, aligning with the higher margins. The recovery in gross profit margin in the latter quarters was accompanied by a corresponding increase in gross profit, though not to the levels seen previously.

The operating profit margin exhibited significant volatility throughout the analyzed period, spanning from April 2022 to December 2025. Initial values indicated a healthy level of profitability, which subsequently deteriorated before a partial recovery towards the end of the period.

Initial Period (Apr 2, 2022 – Oct 1, 2022)

The operating profit margin began at 25.87% in April 2022, demonstrating a generally decreasing trend over the subsequent quarters. It declined to 18.88% in July 2022 and further to 12.16% in October 2022. This suggests a weakening of operational efficiency or increasing costs relative to revenue during this timeframe.

Period of Losses (Dec 31, 2022 – Sep 30, 2023)

A substantial decline continued into the final quarter of 2022, with the margin falling to 3.70% in December 2022. The following three quarters saw negative operating profit margins, reaching a low of -17.52% in September 2023. This indicates that operating costs consistently exceeded operating income during this period, resulting in operational losses.

Partial Recovery and Subsequent Volatility (Dec 30, 2023 – Dec 27, 2025)

A positive operating profit margin of 0.17% was observed in December 2023, signaling a potential turnaround. However, this was followed by a return to negative margins in March 2024 (-0.83%) and a significant drop to -22.84% in June 2024. The margin improved to -4.46% in September 2025 and -4.19% in December 2025, indicating some stabilization, though still representing an operational loss. The final margin remains considerably lower than the initial values observed in 2022.

Relationship to Revenue

While net revenue generally remained stable or showed modest growth over the period, the operating income (loss) experienced far greater fluctuations. This suggests that changes in operating profit margin are primarily driven by variations in operating income, rather than significant shifts in revenue. The substantial negative operating income in several quarters overwhelmed revenue, resulting in the observed negative margins.

In summary, the operating profit margin experienced a period of decline followed by substantial losses, with a limited recovery towards the end of the analyzed timeframe. The volatility suggests underlying operational challenges and sensitivity to cost management or external factors impacting profitability.

The net profit margin exhibits significant volatility throughout the observed period. Initially, the metric demonstrates a relatively strong performance, followed by a period of substantial decline and eventual recovery, albeit with continued fluctuations.

Initial Performance (Apr 2, 2022 – Oct 1, 2022)

The net profit margin begins at 31.68% and gradually decreases to 19.13% over the first three quarters. While a decline is present, the margin remains positive and indicates a healthy level of profitability during this timeframe.

Significant Decline (Dec 31, 2022 – Mar 30, 2024)

A marked downturn is observed starting in the fourth quarter of 2022, with the net profit margin falling to 12.71% and then experiencing a loss in the first quarter of 2023 (-5.06%). This negative trend continues through the first three quarters of 2024, culminating in a substantial loss of -29.42% in the second quarter of 2024. The margin fluctuates between negative and slightly positive values during this period, indicating considerable challenges in maintaining profitability.

Partial Recovery and Subsequent Volatility (Jun 29, 2024 – Dec 27, 2025)

The net profit margin shows a positive shift in the third quarter of 2024, reaching 0.37%. However, this improvement is short-lived, as the margin declines again to -0.51% by the end of 2025. The period is characterized by substantial swings, suggesting instability in the factors influencing profitability. The margin briefly returns to positive territory in the third quarter of 2025, but ends the period with a negative value.

Overall Trend

The overall trend reveals a considerable decrease in net profit margin from the beginning to the end of the period. While there are instances of positive margins, the frequency and magnitude of negative values suggest increasing pressure on profitability. The volatility observed throughout the period indicates sensitivity to underlying revenue and cost structures.

The substantial negative margin recorded in the second quarter of 2024 warrants further investigation to identify the contributing factors. The fluctuations observed in later quarters suggest that any improvements in profitability are not consistently maintained.

The Return on Equity (ROE) exhibited considerable volatility throughout the analyzed period, spanning from April 2022 to December 2025. Initial values demonstrated a relatively strong return, followed by a period of decline and eventual recovery, though with continued fluctuations.

Initial Performance (Apr 2, 2022 – Oct 1, 2022)

ROE began at 23.87% in April 2022, indicating a strong return for stockholders. A gradual decrease was observed over the subsequent quarters, reaching 18.88% in July 2022 and further declining to 13.32% by October 2022. This suggests a weakening in profitability relative to equity during this timeframe.

Period of Negative Returns (Dec 31, 2022 – Sep 30, 2023)

The final quarter of 2022 saw a significant drop to 7.90%, followed by negative ROE values in the first half of 2023, reaching -2.91% in April 2023 and -0.91% in July 2023. This trend continued into September 2023, with ROE reaching -1.61%, indicating a period where the company generated losses relative to shareholder investment.

Fluctuating Recovery (Dec 30, 2023 – Jun 28, 2025)

A positive ROE of 1.60% was recorded in December 2023, signaling a potential turnaround. However, this was followed by further volatility. ROE reached 3.84% in March 2024, then declined to 0.85% in June 2024. A substantial negative value of -16.04% was observed in September 2024, followed by -18.89% in December 2024 and -19.24% in March 2025. A recovery to 0.19% occurred in September 2025, but was followed by a decline to -0.23% in December 2025.

Equity Trends

Total stockholders’ equity generally increased over the period, moving from 103,136 US$ in millions in April 2022 to 114,281 US$ in millions in December 2025. However, the fluctuations in net income attributable to the company appear to have a more significant impact on ROE than changes in equity, as evidenced by the periods of negative ROE despite increasing equity values.

Net Income Correlation

The ROE values closely correlate with the net income attributable to the company. Periods of net loss directly resulted in negative ROE, while positive net income generally corresponded with positive ROE. The magnitude of the net income (loss) significantly influenced the ROE percentage.

In summary, the ROE demonstrates a pattern of instability, heavily influenced by net income fluctuations. While equity generally increased, it did not consistently translate into improved returns for stockholders, particularly during periods of net losses.

The Return on Assets (ROA) exhibited considerable fluctuation over the analyzed period, spanning from April 2022 to December 2025. Initial values demonstrated a relatively strong performance, followed by a period of decline and eventual recovery, though with continued volatility.

Initial Performance & Subsequent Decline (Apr 2022 – Dec 2022)

The ROA began at 13.96% in April 2022, indicating a strong ability to generate earnings from its asset base. This was followed by a decrease to 11.21% in July 2022, and a further decline to 7.61% by October 2022. The ROA reached a low of 4.40% by the end of 2022, suggesting a weakening in profitability relative to asset utilization.

Period of Negative ROA (Apr 2023 – Sep 2024)

The first half of 2023 saw the ROA turn negative, reaching -1.54% in April 2023 and -0.50% in July 2023. This trend continued into the latter half of the year, with a further decline to -0.87% in September 2023, before a slight recovery to 0.88% in December 2023. However, this recovery proved short-lived, as the ROA fell sharply to -8.25% in September 2024, and reached a low of -16.639% in June 2024. This period represents a significant underperformance in asset utilization and profitability.

Recent Fluctuations & Limited Recovery (Dec 2024 – Dec 2025)

A modest recovery was observed in December 2024, with the ROA reaching -9.55%. This was followed by further negative values in March 2025 (-9.99%) and June 2025 (-10.65%). A positive ROA of 0.10% was recorded in September 2025, but this was followed by a return to negative territory in December 2025 (-0.13%). The overall trend suggests a struggle to consistently generate positive returns from the asset base.

The considerable volatility in ROA throughout the period indicates sensitivity to changes in net income and potentially, significant shifts in asset levels. The extended period of negative ROA raises concerns about the efficiency of asset allocation and the company’s ability to generate profits from its investments.