Intel Q2 2025 earnings: $12.86B revenue, adj. EPS $0.10, adj. gross margin 36%, adj. operating margin -3.9%.

Intel Q2 2025 earnings: $12.86B revenue, adj. EPS $0.10, adj. gross margin 36%, adj. operating margin -3.9%.

Intel Corporation reported its second-quarter 2025 financial results, with revenue of $12.9 billion, a flat year-over-year (YoY) performance. The company's earnings (loss) per share (EPS) attributable to Intel was $(0.67), with non-GAAP EPS attributable to Intel at $(0.10). The company attributed a $(0.45) impact to GAAP EPS from $1.9 billion of restructuring charges and $(0.23) and $(0.20) impacts to GAAP and non-GAAP EPS from $800 million of impairment charges and $200 million in one-time period costs, respectively [1].

Intel forecasted third-quarter 2025 revenue of $12.6 billion to $13.6 billion, expecting third-quarter EPS attributable to Intel of $(0.24) and non-GAAP EPS of $0.00. The company is targeting $17 billion of non-GAAP operating expenses in 2025 and $16 billion in 2026, with gross capital expenditures of $18 billion for 2025 [1].

Intel's CEO, Lip-Bu Tan, stated, "Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency. We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. We are also taking the actions needed to build a more financially disciplined foundry. It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value." David Zinsner, Intel CFO, added, "Our results reflect solid demand across our business and good execution on our priorities. The changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future" [1].

Intel continues to focus on driving greater efficiency and execution, with a core workforce reduction of approximately 15% and plans to end the year with about 75,000 employees. The company also aims to optimize its manufacturing footprint, including slowing the pace of construction in Ohio and consolidating assembly and test operations in Costa Rica into larger sites in Vietnam and Malaysia [1].

Intel's gross margin decreased to 29.7% in the second quarter of 2025, down from 38.7% in the same quarter last year, while operating margin (loss) was (3.9%) compared to (0.2%) in the previous year. The company generated $2.1 billion in cash from operations during the second quarter [1].

Intel launched three new additions to its Intel® Xeon® 6 series of central processing units (CPUs) and made key leadership appointments, including Greg Ernst as chief revenue officer and Srinivasan Iyengar, Jean-Didier Allegrucci, and Shailendra Desai in key engineering leadership roles. Additionally, Intel sold 57.5 million of net Class A shares of Mobileye, adding approximately $922 million to its balance sheet [1].

Intel's guidance for the third quarter of 2025 includes both GAAP and non-GAAP estimates, with revenue forecasted at $12.6-13.6 billion and a gross margin of 34.1% to 36.0%. The company expects earnings (loss) per share attributable to Intel—diluted to be $(0.24) and non-GAAP EPS of $0.00 [1].

Intel will hold a public webcast at 2 p.m. PDT today to discuss the results for its second quarter of 2025. The live public webcast can be accessed on Intel's Investor Relations website at www.intc.com [1].

References:
[1] https://www.stocktitan.net/news/INTC/intel-reports-second-quarter-2025-financial-c10jc8w3nntd.html