📊 Key Financial Highlights – Q2 2025 (Ended June 28, 2025)
Revenue: $12.9 billion, essentially flat year‑over‑year ▲0.2% (vs. Q2 2024’s $12.8B) Financial Times+8Business Wire+8Intel Corporation+8
GAAP EPS (loss): – $0.67 per share, a 76% decline from – $0.38 in Q2 2024 Financial Times+2Business Wire+2Intel Corporation+2
Non‑GAAP EPS: – $0.10, missing estimates of +$0.01 by a sizeable margin Investing.com+1Investing.com+1
Gross margin (GAAP): 27.5% vs. 35.4% in Q2 2024; non‑GAAP: 29.7% vs. 38.7% Business Wire+1Intel Corporation+1
Net loss attributable to Intel: $(2.9) billion GAAP; $(0.4) billion non‑GAAP MarketWatch+3Intel Corporation+3Business Wire+3
Operating cash flow: $2.1 billion Intel Corporation
1.Earnings in Context: Why Revenue Holding Isn’t Enough
Despite breaking Intel’s four‑quarter streak of year‑over‑year sales declines, revenue of $12.9 billion only modestly exceeded analyst expectations (roughly $12.8 billion) Investing.com+5Investors+5Business Wire+5. While segment revenues showed some strength—AI/data‑center up 4% to $3.9 billion, foundry up 3% to $4.4 billion—client computing fell 3% to $7.9 billion Newsroom+4Investors+4Business Wire+4.
The key problem remains profitability: large restructuring charges and impairment write‑downs wiped out any operating leverage. Intel’s GAAP EPS plunged to – $0.67, dragging net margin and bottom line into deep red.
2. The Charges Behind the Loss
Intel disclosed major one‑time items in Q2 that drove the EPS collapse:
$1.9 billion of restructuring expenses tied to workforce reduction and organizational streamlining impacting GAAP EPS by –$0.45/share Investors+2Intel Corporation+2Business Wire+2Wikipedia
$800 million in impairment charges related to excess manufacturing tools, no longer reusable; a $200 million block of one‑time costs together trimming ~800 basis points off gross margin and dipping EPS by about –$0.20 non‑GAAP MarketWatch+2Intel Corporation+2Business Wire+2
These charges were excluded from Intel’s non‑GAAP results, illustrating the operational hit even after adjustments.
3. Strategic Restructuring: The New Intel Under Lip‑Bu Tan
Under newly appointed CEO Lip‑Bu Tan (since March 2025), Intel is launching a high‑stakes turnaround:
Workforce reduction: Cutting from ~99,500 to roughly 75,000 employees (15% reduction) through layoffs and attrition, to create a flatter, more agile structure MarketWatch+12Intel Corporation+12Wikipedia+12
CapEx and footprint rebalancing: Canceling major facilities in Germany and Poland; consolidating assembly/test in Costa Rica into facilities in Vietnam and Malaysia; slowing construction at Ohio mega‑fab site Financial Times+5Intel Corporation+5Wikipedia+5
Expense discipline: Targeting $17 billion non‑GAAP operating expenses in 2025, down further to $16 billion in 2026; capital expenditures expected to total about $18 billion in 2025 finance.yahoo.com+3Intel Corporation+3Intel Corporation+3
CEO Tan emphasized these moves are essential to restructure Intel’s culture, streamline decision‑making, and refocus on core growth areas especially AI and foundry businesses.
4. Business Segment Performance & Challenges
Client Computing Group (CCG)
Revenue: $7.9 billion (down 3% YoY) Investing.com+15Business Wire+15MarketWatch+15Investors
Continued decline in PC chip demand pressures margins and volume.
Data Center & AI (DCAI)
Revenue: $3.9 billion (up 4%, showing modest momentum from AI infrastructure demand) Business WireInvestors
🏭 Intel Foundry
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Revenue: $4.4 billion (up 3%) but still operating at a loss due to scale and investment phase Business WireInvestopedia
Intel’s ability to build credible AI chip manufacturing at scale remains critical, but it faces steep competition from TSMC and Nvidia’s inhouse offerings.
5. Outlook: Q3‑2025 Guidance & Investor Sentiment
For Q3 (ending September 2025), Intel projects:
Revenue: $12.6 billion–$13.6 billion (above consensus of ~$12.7 billion) Financial TimesInvestors+1The Times+1Investing.com+4The Times+4MarketWatch+4
Non‑GAAP EPS: $0.00 (breakeven), down from prior-year profit expectations of ~$0.04–$0.05/share Investopedia
The cautious EPS guidance—flat at breakeven—reflects ongoing restructuring expenses and margin pressure. Following the earnings release, Intel stock dropped ~3.7–4% after hours, reflecting investor disappointment in profitability metrics despite the revenue upside InvestorsMarketWatchFinancial Times.
6. Competitive Landscape: Intel vs. AMD, Nvidia, TSMC
Intel remains a major player in semiconductors—but it faces mounting pressure:
Nvidia dominates the AI chip segment driving cloud/data‑center growth, and Intel is still scaling its AI accelerators (Gaudi‑3, Xeon 6).
TSMC leads chip fabrication globally; Intel’s foundry ambitions, while progressing, are costly and structurally uphill.
AMD continues to chip away at Intel’s PC market share with aggressive product innovation.
Intel’s transition plan hinges on accelerated growth in AI capabilities, disciplined capital deployment, and a leaner cost base.
7. Why This Quarter Matters: Key Themes
Revenue beat but profit miss: The modest upside in revenue was overshadowed by a striking EPS miss driven by one-off charges.
Restructuring underway: Intel is making major bold moves to reshape its global footprint, workforce, and cost structure.
Turnaround plan in early phase: Financial discipline and efficiency are being prioritized to stabilize near-term results and preserve long-term credibility.
AI and Foundry as growth vectors: Success in these high-margin, future-forward areas is critical to regaining competitive footing.
8. Investor Takeaways & Forward Strategy
✅ What to Watch:
Gross margin stabilization: Will restructuring and impairment charges end by Q3, enabling rebound toward 30%+ non‑GAAP margins?
AI/Foundry performance: How quickly can Intel scale AI chip production and win external foundry customers (e.g. for 18A node)?
CapEx restraint execution: Can Intel stick to its $18B CapEx budget for 2025 and adjust as market demand evolves?
Workforce restructuring outcomes: Will leaner staffing translate into faster decision‑making and execution on new product rollouts?
⚠️ Risks and Headwinds:
Continued competitive pressure from Nvidia, AMD, and TSMC.
Execution delays in foundry or next-gen chip nodes.
Macroeconomic softness or a weak PC/demand cycle.
Investor patience could wear thin if profits don’t reappear by mid‑2026.
9. Blog Summary: Intel Q2 2025 at a Glance
| Metric | Q2 2025 Result | YoY Change / Comment |
|---|---|---|
| Revenue | $12.9 B | Flat vs. $12.8 B |
| GAAP EPS | – $0.67 | Declined sharply due to charges |
| Non‑GAAP EPS | – $0.10 | Missed consensus of +$0.01 |
| Gross Margin (non‑GAAP) | 29.7% | Down ~9 ppt from 38.7% |
| Workforce | ~75k targeted by 2025 | 15% reduction underway |
| Q3 Guidance | $12.6–13.6 B revenue | EPS breakeven forecast |
| Key Strategy | Cost cuts, AI push, foundry rebuild | Long‑term turnaround strategy |
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Final Thoughts
Intel’s Q2 2025 earnings mark a pivotal moment: revenue consistency but deep financial pain from restructuring. The new leadership under Lip‑Bu Tan is making transformative decisions—from workforce cuts to canceling global facilities—all aimed at restoring competitiveness and focusing on AI and foundry growth areas.
While the company is not profitable yet, its guidance toward breakeven and sharper cost discipline suggest the beginning of a long transitional journey. Investors and industry watchers should closely monitor AI/Foundry results, capex execution, and margin recovery in upcoming quarters.
Intel Q2 2025 earnings
Intel revenue growth flat
Intel EPS loss –0.10
Intel restructuring and layoffs
Lip‑Bu Tan turnaround plan
Intel foundry AI strategy
Intel versus AMD Nvidia competition
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