On Thursday, Intel Corp. (NASDAQ:INTC) delivered a blowout first quarter, with its finance chief pointing to unexpected inventory sales and higher pricing as key drivers behind the earnings beat.

Intel Earnings Beat Driven By Inventory Surprise, Pricing Power

Intel reported first-quarter adjusted earnings of 29 cents per share, sharply exceeding Wall Street estimates of one cent.

Revenue came in at $13.58 billion, topping expectations of $12.42 billion and marking a roughly 9% surprise — the company's largest revenue beat in more than five years.

Chief Financial Officer Dave Zinsner told CNBC correspondent Kristina Partsinevelos that part of the upside came from selling products previously written off as end-of-life inventory, which saw renewed customer demand.

He also highlighted broad-based price increases across Intel's portfolio, adding that the company expects pricing to continue rising.

Data Center Strength Offsets PC Market Concerns

All of Intel's major business segments exceeded expectations, with data center and foundry operations leading the gains.

Zinsner noted that while rising memory costs could pressure the PC market in the second half of the year, that dynamic may benefit Intel as it shifts capacity toward higher-demand data center products.

Gross margins came in at 41% for the quarter, reflecting improved profitability alongside stronger demand trends.

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Strong Guidance Signals Momentum Ahead

Looking forward, Intel expects second-quarter revenue in the range of $13.8 billion to $14.8 billion, above analyst estimates of $13.07 billion.

The company also guided for adjusted earnings of 20 cents per share, well ahead of the 9-cent consensus estimate.

Zinsner added that improving production output and continued pricing strength are expected to remain key contributors in the coming quarters.

Price Action: On Thursday, in the after-hours trading, Intel shares surged 19.95% to $80.10, after closing at $66.78, up 2.31% during the regular hours, according to Benzinga Pro.

Intel sits in the 96th percentile for Momentum on Benzinga Edge, underscoring strong performance across short, medium and long-term trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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