Intel shares fell over 4% in after-hours trading; Q2 revenue exceeded expectations but CEO's remarks failed to reassure the market.

Intel shares fell over 4% in after-hours trading; Q2 revenue exceeded expectations but CEO's remarks failed to reassure the market.

Intel Corporation (INTC) reported its second-quarter (Q2) earnings on Thursday, July 24, 2025, revealing a mixed bag of results that sent its stock tumbling in after-hours trading. Despite exceeding revenue expectations, the company reported an unexpected loss, which was primarily attributed to impairment charges and one-time costs.

Intel's Q2 revenue came in at $12.86 billion, beating analysts' expectations of $11.97 billion [1]. However, the company reported an adjusted loss of 10 cents per share, missing expectations of a 1-cent profit per share. Under generally accepted accounting principles (GAAP), Intel reported a loss of 67 cents per share, largely due to restructuring charges [1].

The earnings report highlighted the ongoing challenges faced by Intel, particularly in its foundry business. The foundry segment grew 3% year-over-year to $4.4 billion, but the overall results were overshadowed by a $800 million impairment charge and $200 million in one-time costs [2]. Intel's CEO, Lip-Bu Tan, acknowledged the financial strains and strategic retreats in a letter to employees, detailing plans to reduce the global workforce to around 75,000 by year's end [3].

Intel's guidance for the third quarter calls for adjusted EPS to breakeven, with revenue projected between $12.6 billion and $13.6 billion, slightly exceeding analyst estimates [2]. However, the company's stock fell more than 4% in after-hours trading, closing at $22.63 during the regular session and dropping further to $22.23 post-market [1].

Investors were left unimpressed by Intel's Q2 results, despite the company's revenue growth. The market's concerns were exacerbated by the company's aggressive restructuring plans, which include halting fab developments in Germany and Poland, and shifting assembly operations to lower-cost sites in Vietnam and Malaysia [3]. The strategic retreats and workforce reductions underscore the challenges Intel faces in competing with rivals like Nvidia and TSMC.

In conclusion, Intel's Q2 earnings report highlighted the company's ongoing struggles, with revenue growth overshadowed by significant losses and restructuring charges. The market's reaction to the report underscores the challenges Intel faces in regaining investor confidence and stabilizing its financial performance.

References:
[1] https://www.investors.com/news/technology/intel-stock-intc-q2-2025-earnings-report/
[2] https://www.fxleaders.com/news/2025/07/24/intel-stock-intc-slides-5-as-impairment-charges-hit-q2-earnings/
[3] https://www.webpronews.com/intel-ceo-announces-layoffs-project-cuts-in-major-restructuring/