Intel Q2 2025 earnings have sparked intense discussion, and if you’re a U.S. investor or tech enthusiast, you’re likely wondering how the struggling chip giant is faring under CEO Lip-Bu Tan. Reported on July 24, 2025, Intel’s results show a revenue beat but an EPS miss, coupled with massive layoffs and canceled factory plans. This SEO-optimized article, crafted for RankMath, dives into Intel’s Q2 financials, strategic shifts, and what they mean for shareholders and the semiconductor industry—all backed by credible sources and X sentiment.
Intel’s Q2 2025 Earnings: The Numbers at a Glance
Intel’s Q2 2025 earnings painted a picture of a company navigating a tough landscape while pushing for a comeback. Here’s how the numbers stacked up:
- Revenue: Intel reported $12.86 billion in revenue, surpassing Wall Street’s expectations of $11.92 billion. That’s a solid win, showing demand for Intel’s products is holding up better than anticipated.cnbc.com
- Earnings Per Share (EPS): The adjusted EPS came in at a loss of $0.10, missing the estimated $0.01 profit. A hefty $1.9 billion in restructuring charges, plus $800 million in impairment charges and $200 million in one-time costs, dragged down the GAAP EPS to a loss of $0.67 per share, compared to a $0.38 loss in Q2 2024.intc.com
- Net Loss: The company posted a net loss of $2.9 billion, wider than the $1.61 billion loss from the same quarter last year. Those one-time charges really took a bite out of the bottom line.cnbc.com
- Stock Reaction: Intel’s stock took a hit, dropping about 5% in after-hours trading, reflecting investor disappointment over the EPS miss despite the revenue beat.cnbc.com
Key Business Segments: Where Intel Stands
Intel’s performance varied across its key segments, giving us a glimpse into what’s working and what’s not:
- Data Center Group: Revenue here climbed 4% year-over-year to $3.9 billion, driven by demand for server processors and some AI chips. However, Intel’s still playing catch-up in the AI race, with competitors like AMD and NVIDIA grabbing more market share.cnbc.com
- Products Business: This segment, covering laptop and desktop CPUs plus data center and AI chips, brought in $11.8 billion, beating expectations of $10.9 billion. It’s a bright spot, showing Intel’s core offerings are still in demand.finance.yahoo.com
- Foundry Business: Intel’s nascent foundry division, which aims to manufacture chips for third-party customers, generated $4.4 billion, slightly above the $4.3 billion expected. It’s growing, but at 2% year-over-year, it’s clear this venture is still finding its footing.finance.yahoo.com
Strategic Moves: Cost-Cutting and Restructuring
Under CEO Lip-Bu Tan, who’s been at the helm since March 2025, Intel is doubling down on efficiency and financial discipline. Here’s what’s happening:
- Workforce Reduction: Intel slashed 15% of its workforce, with most layoffs completed, aiming for a leaner core team of about 75,000 employees by year-end. This follows reports of significant layoffs in Oregon (2,329 employees) and Arizona (nearly 700).finance.yahoo.com
- Operating Expense Goals: The company is targeting $17 billion in non-GAAP operating expenses for 2025 and $16 billion for 2026, down from previous estimates. This is part of a broader push to streamline operations and boost profitability.intc.com
- Capital Expenditure Cuts: Intel plans to spend $18 billion on gross capital expenditures in 2025, focusing on capital efficiency as it nears the end of its “five nodes in four years” strategy.intc.com
- Non-Core Asset Sales: Intel sold 57.5 million Class A shares of Mobileye in July 2025, adding $922 million to its balance sheet while retaining majority ownership. This move underscores Tan’s focus on monetizing non-core assets to strengthen finances.intc.com
Looking Ahead: Q3 2025 Guidance
Intel’s guidance for Q3 2025 offers a glimpse into its near-term outlook:
- Revenue: Expected to be between $12.6 billion and $13.6 billion, above the average analyst estimate of $12.65 billion. This suggests confidence in sustained demand.cnbc.com
- EPS: Intel forecasts breaking even on a non-GAAP basis, while analysts were expecting $0.04 per share. GAAP EPS is projected at a loss of $0.24, reflecting ongoing restructuring costs.intc.com
Challenges and Opportunities
Intel’s facing some headwinds, but there are silver linings too:
- Challenges:
- AI Market Lag: Intel’s struggling to keep up with NVIDIA and AMD in the booming AI chip market. Posts on X even suggest CEO Tan admitted it’s “too late” to catch up in AI training, though these claims lack official confirmation.
- Competition: AMD is eating into Intel’s server market share, and Qualcomm’s push into PC chips with Snapdragon X Plus and X Elite adds pressure.finance.yahoo.com
- Financial Strain: The $800 million impairment charge for “excess tools” and $200 million in one-time costs highlight inefficiencies that need addressing.cnbc.com
- Opportunities:
- AI and Foundry Ambitions: Intel’s investing in its 18A process, with products like Panther Lake and Clearwater Forest on track for 2025 launches. The foundry business, though slow-growing, could be a long-term game-changer if Intel secures third-party clients.intc.com
- Cost Discipline: Tan’s aggressive cost-cutting and focus on core AI-centric offerings could improve margins and financial health over time.stocktitan.net
- Market Resilience: The revenue beat and upbeat Q3 guidance signal that Intel’s products still have strong demand, especially in data centers and PCs.shacknews.com
What Does This Mean for Investors?
If you’re eyeing Intel stock, the Q2 2025 report is a mixed bag. The revenue beat and optimistic Q3 guidance are encouraging, showing Intel’s core business is resilient despite fierce competition. However, the EPS miss and ongoing losses highlight the challenges of a costly turnaround. Analysts remain cautious, with 32 of 38 rating INTC as a Hold and an average price target of $21.33, suggesting a slight downside from the current $23.44.techi.com
CEO Lip-Bu Tan’s focus on cost-cutting, workforce reduction, and strengthening the foundry business could set Intel up for long-term growth, especially if the 18A process gains traction. But with NVIDIA and AMD dominating AI and server markets, Intel needs to execute flawlessly to regain its edge.
All in All
Intel’s Q2 2025 earnings show a company in transition, balancing short-term pain with long-term ambition. The revenue beat is a positive sign, but the EPS miss and restructuring charges remind us that turnarounds take time. CEO Lip-Bu Tan’s aggressive cost-cutting and focus on AI and foundry services are steps in the right direction, but Intel’s got a steep hill to climb in a competitive market. For U.S. investors, Intel remains a stock to watch—maybe not a screaming buy yet, but one with potential if Tan’s vision delivers.
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