Intel stock was falling early Friday as the first earnings report under new CEO Lip-Biu Tan left the market cold. The good news wasn’t that good and the bad news was pretty bad, according to Wall Street analysts. 

An earnings beat for the quarter was largely attributed to customers making purchases ahead of the potential imposition of tariffs, which could mean weaker sales ahead. That appeared to be supported by a disappointing revenue forecast for the current quarter. 

Intel shares were down 5.6% in premarket trading.

“Intel posted strong 1Q results, which were above expectations as pull-in demand ahead of anticipated tariffs drove strong results in CCG [Client Computing Group] and DCAI [Data Center and AI]. Lowered guidance reflects cautiousness regarding the negative end-demand impacts of tariffs,” wrote KeyBanc analyst John Vinh. 

Vinh has a Sector Weight rating on Intel stock with no target price. 

The other major news was around layoffs. The company said it would remove some layers of management but didn’t give a target for job cuts, after a Bloomberg report ahead of the earnings suggested it would slash more than 20% of its workforce.

Shedding employees will provide some relief on costs—Intel lowered its operating expense target this year by $500 million and expects a further $1 billion reduction next year—but so far has done little to convince the market that Intel can resolve the central issue of gaining, or even defending, its market share from rivals Advanced Micro Devices and Nvidia. 

“INTC’s core PC and traditional server markets appear ex-growth. Tariffs [are] putting extra pressure on PC…We expect continued server CPU share loss this year. IFS [Intel’s chip-manufacturing division] remains unprofitable for the foreseeable. Management focused near term on restructuring/streamlining. We remain sidelined here,” wrote Oppenheimer analyst Rick Schafer in a research note. 

Schafer has a Perform rating on Intel stock with no target price. 

There were no new details on Intel’s chip-manufacturing strategy, as it looks to ramp up its new 18A process in the second half of the year to take on Taiwan Semiconductor Manufacturing, or TSMC, in advanced chip fabrication. A plan to produce its own chips on the process will provide some validation but the real test will be whether it can attractsignificant external customers.

“While we applaud the enhanced cost-cutting efforts, share loss is an issue while the planned 2H ramp of Intel 18A will be crucial. We think Intel remains in a tough position, as competitive pressures across the PC and server markets only intensify, with the company lacking the proper offerings to successfully compete,” wrote CFRA Research analyst Angelo Zino.