Intel Reports Second-Quarter 2025 Financial Results

[TheLostSwede]

Intel Corporation today reported second-quarter 2025 financial results.

"Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency," said Lip-Bu Tan, Intel CEO. "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."






"Our results reflect solid demand across our business and good execution on our priorities," said David Zinsner, Intel CFO. "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."

Progress on Driving Greater Efficiency and Execution
Intel continues to make progress to simplify its business, improve efficiency and enhance execution. These efforts are focused on reducing expenses, strengthening the balance sheet, optimizing the global footprint and concentrating resources on the most critical growth areas.

• On track to achieve $17 billion non-GAAP operating expense target for 2025: Intel has completed the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15%. These changes are designed to create a faster-moving, flatter and more agile organization. As a result of these actions, the company recognized $1.9 billion in restructuring charges in the second quarter of 2025, which were excluded from its non-GAAP results. These charges impacted GAAP EPS by $(0.45) per share. Intel plans to end the year with a core workforce of about 75,000 employees as a result of workforce reductions and attrition.
• Improving capital efficiency; driving to gross capital expenditures of $18 billion for 2025: Intel is taking action to optimize its manufacturing footprint and drive greater returns on invested capital. As part of this effort, Intel will no longer move forward with planned projects in Germany and Poland. The company also intends to consolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam and Malaysia. In addition, Intel will further slow the pace of construction in Ohio to ensure spending is aligned with market demand.

Intel also recognized approximately $800 million of non-cash impairment and accelerated depreciation charges related to excess tools with no identified re-use and approximately $200 million of one-time period costs in the second quarter of 2025. These charges reduced both GAAP and non-GAAP gross margin by approximately 800 basis points and GAAP and non-GAAP EPS by approximately $(0.23) and $(0.20) cents per share, respectively.

These restructuring charges and impairments were not incorporated into the guidance Intel provided for the second quarter of 2025.



Business Unit Summary
In the first quarter of 2025, the company made an organizational change to integrate the Network and Edge Group (NEX) into CCG and DCAI and modified Intel's segment reporting to align to this and certain other business reorganizations. All prior-period segment data has been retrospectively adjusted to reflect the way Intel's chief operating decision maker internally receives information and manages and monitors the company's operating segment performance. There are no changes to Intel's consolidated financial statements for any prior periods.



Business Highlights

• Intel launched three new additions to its Intel Xeon 6 series of central processing units (CPUs), delivering customizable CPU core frequencies to boost graphics processing unit (GPU) performance across demanding AI workloads. One of these, the Intel Xeon 6776P processor, currently serves as the host CPU for NVIDIA DGX B300, the company's latest generation of AI-accelerated systems.
• The first Panther Lake processor SKU remains on track to begin shipping later this year, with additional SKUs coming in the first half of 2026.
• Intel 18A reached a key milestone with the start of production wafers in Arizona.
• Intel 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.
• In line with Intel's commitment to strengthen its balance sheet and monetize non-core assets, the company sold, via a secondary offering, 57.5 million of net Class A shares of Mobileye in July 2025, adding approximately $922 million to the balance sheet. Intel remains the majority shareholder in Mobileye and continues to have strong conviction in its long-term growth opportunity.

Business Outlook
Intel's guidance for the third quarter of 2025 includes both GAAP and non-GAAP estimates as follows:

Reconciliations between GAAP and non-GAAP financial measures are included below. Actual results may differ materially from Intel's business outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below. The gross margin and EPS outlooks are based on the midpoint of the revenue range.

Earnings Webcast
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. The corresponding earnings presentation and webcast replay will also be available on the site.

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[Philaphlous]

Ouch....my portfolio....

come on intel...get competitive again... trim that fat like its a beef brisket...

 

[Tropick]

The non-GAAP metrics: oh no
The GAAP metrics: oh NO

Hoping they can navigate their way out of this pit they've dug themselves in, but great googly moogly those are some dire numbers.

 

[Visible Noise]

Ouch....my portfolio....

come on intel...get competitive again... trim that fat like its a beef brisket...

The market liked the results. $1.9B of the loss was for severance of all the fat they trimmed. $500M of was pulling forward depreciation on the work the severed workforce was doing.

The non-GAAP metrics: oh no
The GAAP metrics: oh NO

Hoping they can navigate their way out of this pit they've dug themselves in, but great googly moogly those are some dire numbers.

Did you read the 10K? What was so “oh no”? Only $3B of cash generated in the quarter? The $200B of assets? Beating the top line revenue guidance?

Please be specific.

 

[watzupken]

The more I read about Intel, the less optimistic I am for their turnaround plan. The emphasis at this point seems to be on cost cutting than doing anything bold to improve product and sales. There is so much you can do if it’s only about cutting cost. Eventually, you will still have to face the fact that revenue is declining. I still hold on to my opinion that they should have ditched the foundry business earlier because it’s a heavy financial burden to them at a time they are losing revenue.

 

[Visible Noise]

The more I read about Intel, the less optimistic I am for their turnaround plan. The emphasis at this point seems to be on cost cutting than doing anything bold to improve product and sales. There is so much you can do if it’s only about cutting cost. Eventually, you will still have to face the fact that revenue is declining. I still hold on to my opinion that they should have ditched the foundry business earlier because it’s a heavy financial burden to them at a time they are losing revenue.

Here’s their plan:

Lip-Bu Tan: Steps in the Right Direction

A message from Intel CEO Lip-Bu Tan to all company employees.

newsroom.intel.com

You noticed revenue was up from last year, yes?

Here’s their 10-Q

https://www.intc.com/filings-reports/all-sec-filings/content/0000050863-25-000109/0000050863-25-000109.pdf

Intel is going to be fine.

 

[Hervon]

Stock lost 3.6% today and 4.6% after market. No optimism here either.

 

[usiname]

Here’s their plan:

Lip-Bu Tan: Steps in the Right Direction

A message from Intel CEO Lip-Bu Tan to all company employees.

newsroom.intel.com

You noticed revenue was up from last year, yes?

Here’s their 10-Q

https://www.intc.com/filings-reports/all-sec-filings/content/0000050863-25-000109/0000050863-25-000109.pdf

Intel is going to be fine.

If I didn't know that you are Intel's fan bot, I wound think you are ironic, but to be so high because 0.2% better revenue than the previous Q? What are you smoking? Q1 they are down 0.45%, Q4 2024 down 7.4%. The last 3 years they are disaster and almost every Q is bad or REALLY BAD. If they have positive Q, it is because the last one is so terrible and the new bar is so low. If 0.2% up is soooo coooool, then the last 3 years are what? Probably your brainwashed mind will say, that it is not bad, because they "survive". Good thing there is no revenue with inflation metrics, because if we want to see the last positive Q for Intel we will need to dig from 5 years ago

 

[john_]

Intel making more money than expected, but having a new CEO that unfortunately will run it to the ground and destroy it. Intel should be pushing 18A instead of dreaming of offering 14A and hoping that huge companies like Apple and Nvidia will decide to take the huge risk to go with a foundry that keeps failing for the last 10 years while also having faced oxidation and degradation problems a year before. Intel needs to insist on 18A, to build credibility and also start making money from manufacturing. 18A is not exactly an obsolete node to fear that they will not find customers for it. Going the Samsung way, dreaming that "the next node will work" isn't something they can do. Samsung can keep burning money, Intel in it's current form, can't. Intel needs to insist on 18A and start throwing resources on it's GPUs the way Nvidia and AMD do, because Gaudi didn't seem to work.

Ouch....my portfolio....

come on intel...get competitive again... trim that fat like its a beef brisket...

The only thing they are trimming is their future.

The market liked the results.

I still hold on to my opinion that they should have ditched the foundry business earlier because it’s a heavy financial burden to them at a time they are losing revenue.

With out fabs, they are dead. OEMs keep loving Intel, even when Intel produces mediocre products, because Intel owns fabs, meaning Intel can warranty huge and stable flow of CPUs to them. Remove Intel's fabs and they are dead. Yes, they can do something like what AMD did. Sell the fabs and have a contract that will give them priority over other customers, but they will not be able to control where those fabs are going. Imagine if AMD couldn't get out of it's contract with GlobalFoundries, when GF decided to stop developing their 7nm node and stay at 12nm. I doubt a 12nm 5800X3D would be possible, for example.

You noticed revenue was up from last year, yes?

Because companies and OEMs keep buying fearing tariffs. Even Intel's server income was high, while AMD is killing it in servers. Everyone buys because of tariffs. That will end and when it ends, only the best products would be selling. Intel needs good products and it needs those products to be 100% made in it's own fabs to start moving that profit margin up again.


PS Here is AMD after Intel's results,

 

[Visible Noise]

Intel should be pushing 18A

Intel announced that 18A is in mass production.

Since you couldn’t get your second sentence correct I stopped reading after that.

 

[john_]

Intel announced that 18A is in mass production.

Since you couldn’t get your second sentence correct I stopped reading after that.

I understand that the latest Intel news makes you uncomfortable, so I understand your pain and wouldn't ask you to read more.

By the way, you missed my point entirely, but never mind. I am not going to make it any harder for you.

 

[cinemaware]

They just announced getting rid of 30% workforce. Interesting times. But if you're an AMD fan cheering the old enemy's demise, be careful what you wish for.

 

[Nhonho]

I estimate that Intel will reach around $10 billion in net loss (GAAP) this entire year.

The non-GAAP metrics: oh no
The GAAP metrics: oh NO

I'd say:

The non-GAAP metrics: oh no, not again.
The GAAP metrics: OH NOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!

 

[FoulOnWhite]

Intel is like a ship with a single man crew, it has a hole in it and is slowly sinking. Single guy puts finger in hole, but it's not quite enough to seal it, still slowly sinking and the man is stuck with finger in hole and unable to steer the ship.

Shame, i don't wish for Intel to fail. Probably none of us would be typing into a PC without Intel.

 

[Nhonho]

Intel is like a ship with a single man crew, it has a hole in it and is slowly sinking. Single guy puts finger in hole, but it's not quite enough to seal it, still slowly sinking and the man is stuck with finger in hole and unable to steer the ship.

Shame, i don't wish for Intel to fail. Probably none of us would be typing into a PC without Intel.

Intel has only one savior: Mr. Leather Jacket from Nvidia. Don't underestimate the power of his finger..

 

[mb194dc]

So all the pumping news stories in last few weeks, then these results... rinse and repeat.

 

[Bobaganoosh]

What is infuriating about most responses to quarterly reports from a company like this is how long it takes for any plans or products to actually make an impact. The best possible management plan for Intel's long term future would probably make them horribly unprofitable for 3-5 years. Nobody would accept that. So instead they have to limp along, firing people, trying to look more sustainable quarter-to-quarter, slashing investment in innovative products that could be huge for them later. You do this long enough and you end up just continuing the death march of mediocre-at-best products from a shrinking workforce and you just keep bleeding customers and money. The snake eats its own tail so to speak. That said, even if you took the hard road to short term losses and long-term gains, you'd have to accept (and get the stock market to accept) that the management team is capable of pulling it off with no evidence or proof in the meantime, and you better be damn sure the team is up to the task or it fails even worse.

It's a tricky place to be, but if you just keep changing a plan that takes 5 years to be successful every 3 months, you'll never be successful on any long term plan.

 

[Philaphlous]

Intel is like a ship with a single man crew, it has a hole in it and is slowly sinking. Single guy puts finger in hole, but it's not quite enough to seal it, still slowly sinking and the man is stuck with finger in hole and unable to steer the ship.

Shame, i don't wish for Intel to fail. Probably none of us would be typing into a PC without Intel.

No no... Intel is like a ship with a full crew going nowhere... too many crew... and then the HQ company on land decided to replace the captain and get rid of all the crew hoping the ship would end up going somewhere...

 

[doc7000]

Intel has a really hard battle to fight here, I don't know if they can pull it off. Their foundry business is sinking them and I don't think they can get out from under it.