The Intel brand is displayed on an indication in entrance of Intel headquarters on July 16, 2025 in Santa Clara, California.
Justin Sullivan | Getty Photos
Intel reported second-quarter outcomes on Thursday that beat Wall Avenue expectations on income, as the corporate’s new CEO Lip-Bu Tan introduced vital cuts in chip manufacturing unit building. The inventory ticked greater in prolonged buying and selling.
Here is how the chipmaker did versus LSEG consensus estimates:
- Earnings per share: Lack of 10 cents per share, adjusted.
- Income: $12.6 billion versus $11.92 billion estimated
Intel mentioned it expects income for the third-quarter of $13.1 billion on the midpoint of its vary, versus the common analyst estimate of $12.65 billion. The chipmaker mentioned that it expects to interrupt even on earnings whereas analysts have been searching for earnings of 4 cents per share.
For the second quarter, Intel reported a web lack of $2.9 billion, or 67 cents per share, in contrast with a $1.61 billion web loss, or 38 cents per share, in the year-earlier period. Earnings per share weren’t akin to analyst estimates as a consequence of an $800 million impairment cost, “associated to extra instruments with no recognized re-use,” the corporate mentioned. That resulted in an EPS adjustment of about 20 cents.
The report was Intel’s second since Lip-Bu Tan took over as CEO in March, promising to make the chipmaker’s merchandise aggressive once more, and to scale back forms and layers of administration, together with slashing employees in Oregon and California.
In a memo to workers revealed on Thursday, Tan mentioned that the primary few months of his tenure had “not been straightforward.” He mentioned that the corporate had “accomplished the bulk” of its deliberate layoffs, amounting to fifteen% of the workforce, and that it plans to finish the 12 months with 75,000 workers. Intel beforehand mentioned it was attempting to scale back working bills by $17 billion in 2025.
Intel shares are up about 13% this 12 months as of Thursday’s shut after plummeting 60% in 2024, their worst 12 months on file.
Tan additionally introduced a number of different spending cuts within the memo, notably within the firm’s expensive foundry division, which makes chips for different corporations and remains to be searching for a giant buyer to anchor the enterprise.
Intel mentioned its foundry enterprise had an working lack of $3.17 billion on $4.4 billion in income.
Tan mentioned that Intel had cancelled deliberate fab tasks in Germany and Poland, and can consolidate its testing and meeting operations in Vietnam and Malaysia. He added that the corporate would decelerate the tempo of its building of a cutting-edge chip manufacturing unit in Ohio, relying on market demand and if it may safe huge prospects for the ability.
“Over the previous a number of years, the corporate invested an excessive amount of, too quickly – with out enough demand,” Tan wrote. “Within the course of, our manufacturing unit footprint turned needlessly fragmented and underutilized.”
Tan wrote that the corporate’s forthcoming chip manufacturing course of, referred to as 14A, will probably be constructed out primarily based on confirmed buyer commitments.
“There aren’t any extra clean checks. Each funding should make financial sense,” Tan wrote.
The corporate’s shopper computing group, which is primarily comprised of gross sales of central processors for PCs, had $7.9 billion in gross sales, down 3% on an annual foundation.
Income within the knowledge heart group, which incorporates some AI chips however is generally central processors for servers, rose 4% to $3.9 billion. Tan wrote in his memo that Intel needs to regain market share in knowledge heart chips, and is searching for a everlasting chief for the enterprise. Longtime rival Advanced Micro Devices has more and more been winning server business from cloud prospects.
Tan added he would personally evaluate and approve all chip designs earlier than they’re taped out, which is the ultimate step of the design course of earlier than a brand new chip is manufactured.
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