The Art of the One-Off
I was looking at Intel’s Q3 2025 net income figure of $4.1 billion. On the surface, it looks like a triumphant return to glory. But my mind ponders - how does a company with flat operational growth suddenly triple its bottom line?
I dug into the footnotes. It turns out, this isn’t money made from selling chips. It’s money made from selling parts of the company.
Stripping the Paint
Here is the math that the headline ignores:
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Reported Net Income: $4.1 billion
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Gain from Altera Sale: ~$3 billion (deconsolidated)
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Gain from Mobileye Stake Sale: ~$900 million
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“Real” Operational Income: ~$200 million
If you strip away the sale of the family silver, the actual profit margin isn’t the healthy 30% they want us to see. It’s barely hovering above 1%. The business isn’t generating cash; it’s generating headlines by liquidating assets.
Selling the Furniture
It reminds me of a struggling household that maintains its lifestyle by selling the antique furniture in the attic. Sure, the cash flow looks positive this month. But what happens when there is no more furniture left to sell?