Intel Earnings Q2 2025: Intel Posts Revenue Beat but Reports Deeper Loss
On July 24, 2025, Intel Corporation (Nasdaq: INTC, often referred to as Intel stock or INTC stock) released its Q2 2025 earnings, delivering a mix of positive revenue performance and stark earnings disappointments—a pivotal moment in its ongoing restructuring narrative.
Revenue Surpasses Forecast, But Loss Deepens
Intel posted revenue of $12.9 billion, essentially flat year‑over‑year and slightly exceeding consensus estimates of roughly $11.95–$11.97 billion (Intel Corporation, Investors). While flat sales mark a modest win, Intel’s earnings tell a more troubling story: the company recorded a GAAP net loss of $2.9 billion—a dramatic decline from the $1.6 billion loss in Q2 2024 (The Times).
On a non‑GAAP (adjusted) basis, Intel posted a loss per share (EPS) of -$0.10, missing expectations of a $0.01 profit—a surprise deviation of about 1100% (Investing.com).
Segment Breakdown: Mixed Performance
- PC chip sales declined approximately 3% to $7.9 billion.
- Data center and AI revenues rose modestly (~4%) to $3.9 billion.
- Foundry business revenue grew about 3% to $4.4 billion, delivering the only positive segment growth of the quarter (Investors, Investopedia).
Strategic Charges and Margin Pressure
Intel incurred approximately $1.9 billion in restructuring charges in Q2, which depressed GAAP earnings by $0.45 per share. Additional impairment and one‑time charges of about $800 million and $200 million further reduced non‑GAAP gross margin by roughly 800 basis points—impacting EPS by an additional $0.20 (AP News, Intel Corporation).
Combined, these moves slashed Intel’s gross margin:
- GAAP gross margin fell to 27.5% (down ~7.9ppt YoY)
- Non‑GAAP gross margin stood at 29.7%, down nearly 9ppt from the prior year (MarketWatch, Intel Corporation, Investing.com).
CEO Outlook: Aggressive Restructuring and AI Focus
Under new CEO Lip‑Bu Tan (appointed March 2025), Intel is pushing hard on a cost‑cutting and reinvention strategy:
- Workforce reductions targeting a decrease from ~99,500 to ~75,000 core employees (~15%) by year‑end 2025; approximately 24,000 jobs to be cut via layoffs and attrition (The Verge).
- Cancellation of multi‑billion‑dollar factory investments in Germany and Poland.
- Consolidation of Costa Rica assembly operations into larger Vietnam and Malaysia sites.
- Slowing down construction of the high‑profile Ohio chip fab, delaying and reducing CapEx plans (The Wall Street Journal, AP News, Investopedia).
Tan emphasized Intel’s shift toward AI chip leadership, focusing on 14A and 18A process technologies, and pledging better capital discipline in the foundry business. The company also sold a majority stake in its Altera/Mobileye business, realizing ~$922 million in proceeds (Intel Download Center).
Market Response and Intel Stock Performance (INTC Stock)
Stock Reaction
Despite the revenue beat, Intel’s stock reacted negatively: shares fell 3.66% in after‑hours trading, closing around $23.49 on heavy volume (~115 million shares), underperforming the broader market; competitors like Nvidia and Broadcom posted gains (Investing.com, MarketWatch).
Year‑to‑date, Intel stock had gained ~13–17%, trailing semiconductor peers whose indices climbed more sharply (Barron’s, MarketWatch).
Analyst Sentiment and Ratings
All 11 analysts tracked by Visible Alpha hold a “hold” rating on Intel stock, with average price targets around $22–$22.50—slightly below current levels. Targets from UBS, Wedbush, and HSBC range from $19 to $25 (Investopedia).
Bernstein analysts expressed skepticism, asking whether Intel earnings even matter anymore, citing strategic uncertainties in the foundry business, delays with 18A rollout, and persistent margin pressure (MarketWatch).
Meanwhile, more bullish analysts highlight Tan’s transparency and roadmap clarity—Specifically, Seeking Alpha noted progress on the 18A chip‑making tech and tighter expense control as reasons to view INTC stock as undervalued (Seeking Alpha).
Intel Earnings Narrative: Long‑Term Strategy Takes Center Stage
Balancing Revenue Strength with Operational Weakness
While Intel revenue narrowly beat forecast estimates, the company’s bottom line continues under severe strain. The mismatch between sales growth and profit reflects the heavy restructuring costs and impaired legacy assets. Intel’s adjusted EPS of –$0.10 dominated headlines as a failure to translate operational progress into earnings recovery, despite CEO Tan’s cost discipline initiatives.
Strategic Inflection in the Foundry Business
Intel’s foundry ambitions have been under scrutiny: prolonged delays and potential write‑offs surrounding its 18A and 14A process technologies have dampened investor confidence. Under Tan, Intel is considering recalibrating its foundry roadmap, potentially foregoing external client offerings for the advanced 18A node, risking significant sunk costs (Intel Download Center).
Workforce and Footprint Restructuring
Layoffs targeting 24,000 jobs represent the most aggressive reductions in Intel’s history. Cancelling European mega‑fabs and moving testing operations to Asia signals a leaner, more centralized production footprint. These moves aim to preserve capital and sharpen focus on core businesses, but they carry overhead cost of impairment and organizational disruption (The Verge, The Wall Street Journal, Intel Corporation).
Future Drivers: AI, New Chips, and Cost Efficiency
Intel is betting on next‑generation chips:
- Panther Lake (client AI PC processor) shipping later in 2025,
- 18A and 14A process technologies expected to be major mileposts toward regaining foundry competitiveness (Intel Download Center).
The company projects $17 billion in non‑GAAP operating expenses in 2025, dropping to $16 billion in 2026, and $18 billion in capital expenditures this year—all under a more disciplined, goal‑oriented financial framework (Intel Corporation, Intel Download Center).
Key Takeaways: Intel Earnings in Context
- Revenue Beat, But Profit Miss
Intel earnings for Q2 2025 delivered revenue slightly above expectations, but the adjusted EPS loss of $0.10 reflected deeper struggles. - Major Structural Realignment
Under CEO Lip‑Bu Tan, Intel is executing a sweeping restructuring—workforce cuts, canceling mega‑fabs, and consolidating facilities. - Strategic Focus Shifts Toward AI and Foundry Revival
Clear emphasis is now on AI chips and competitive foundry tech (18A, 14A), though execution delays and write‑offs loom. - Market Remains Skeptical
Intel stock (INTC) declined after earnings, and analysts remain cautiously neutral, pointing to continued execution risk. - Long‑Term Narrative Still Unfolding
The current quarter underscores that Intel’s future hinges not on short‑term earnings, but its ability to regain technological footing and financial discipline.
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- We examine INTC earnings trends and how they inform forward guidance.
Forward Guidance and What Comes Next
Intel forecasts Q3 2025 revenue between $12.6 billion and $13.6 billion, positioning within or above analyst expectations of ~$12.7 billion. Non‑GAAP EPS guidance is flat (around $0.00), missing Wall Street’s consensus of ~$0.05 per share (Intel Corporation).
Analysts will be watching closely how Intel:
- achieves cost‑savings targets,
- launches Panther Lake processors, and
- attracts foundry clients with its 14A/18A node roadmap,
as they shape valuation of intel stock moving forward.
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Frequently Asked Questions (FAQ)
Q1: What were Intel’s Q2 2025 earnings (INTC earnings)?
A1: Intel reported $12.9 billion revenue in Q2 2025 and an adjusted EPS loss of -$0.10, missing analyst expectations of a $0.01 profit.
Q2: Why did Intel post a loss despite strong revenue?
A2: The loss stemmed from $1.9 billion in restructuring charges, plus $800 million in impairments and $200 million in one‑time costs, which heavily eroded margins.
Q3: How did the intel stock (INTC) market react?
A3: The stock fell approximately 3.66% after hours, closing around $23.50, as investors focused on the EPS miss and restructuring uncertainties.
Q4: What is behind Intel’s restructuring plan?
A4: CEO Lip‑Bu Tan aims to reduce headcount by ~15%, cancel unfinished European fabs, consolidate testing facilities to Asia, and curb capital expenditures—all to streamline and reinvest in AI and foundry tech.
Q5: What is Intel’s guidance for Q3 2025?
A5: Intel forecasts $12.6–13.6 billion in revenue, and expects non‑GAAP EPS of approximately $0.00, below analyst estimates of around $0.05.
Q6: Should investors consider INTC stock now?
A6: Analysts remain neutral with hold ratings. It’s a turnaround story—some see value if restructuring and tech recovery succeed, others warn of ongoing execution risk.
