Intel's Q2 Revenue Beats Expectations Amid PC Sales Boost, Expects Significant Cost Cuts Under New CEO

Intel reported Q2 2025 revenue of $12.9 billion, beating expectations. However, the company posted an unexpected loss due to charges related to streamlining. New CEO Lip-Bu Tan is taking decisive action to cut costs, including a 15% workforce reduction and halting planned projects in Germany and Poland. Strong PC sales drove revenue growth, while the Foundry unit reported $4.4 billion in revenue. Shares were up 2% in after-market trading.

Intel Corp. reported its second-quarter 2025 financial results, with revenue of $12.9 billion, surpassing analyst expectations. However, the company posted a net loss of $2.9 billion, largely due to restructuring charges and intense competition from rivals like Nvidia and AMD [1].

The chip giant announced a significant cost-cutting initiative, including a 15% workforce reduction, which will eliminate approximately 24,000 jobs by year’s end. This move is part of a broader $10 billion cost-cutting plan aimed at improving capital efficiency [1]. Intel also halted several high-profile international projects, including semiconductor fabrication plants in Germany and Poland, to optimize its global footprint and save on capital expenditures [1].

Strong PC sales contributed to the revenue growth, while the Foundry unit reported $4.4 billion in revenue. Despite these positive aspects, Intel's stock tumbled 10% in after-hours trading following the announcement, reflecting investor skepticism about the turnaround timeline [1].

Looking ahead, Intel expects third-quarter revenue between $12.5 billion and $13.5 billion, with a forecasted gross margin of 36% [2]. The company aims to focus on its core strengths in design and client computing, as well as its AI roadmap, to better serve customers and regain market share.

References:
[1] https://www.webpronews.com/intel-q2-2025-revenue-flat-at-12-9b-cuts-15-jobs-amid-2-9b-loss/
[2] https://www.ainvest.com/news/intel-posts-surprise-revenue-beat-optimistic-q3-forecast-2507/