Intel cuts dividend, reaffirms Q1 guidance

Intel backed its first-quarter guidance on Wednesday and said it was cutting its dividend by 66% as it looks to preserve cash for investments.

The company said it will cut its quarterly payout to 12.5 cents a share from 36.5 cents.

"The decision to decrease the quarterly dividend reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value," it said. "The improved financial flexibility will support the critical investments needed to execute Intel’s transformation during this period of macroeconomic uncertainty."

The company also reaffirmed its first-quarter guidance for revenues of between $10.5bn and $11.5bn a 15 cent non-GAAP loss per share.

Chief financial officer David Zinsner said: "We are well on our way to meeting our commitment to reduce $3 billion in costs this year as we look to deliver $8 to $10 billion in savings exiting 2025.

"While we will continue to prudently manage cash and capital outlays in the near term, we are setting the foundation for significant operating leverage and free cash flow growth when we emerge from this period of outsized investments."