Intel (INTC) Q2 2025 Earnings Beat Revenue, Misses Earnings

Intel reported mixed Q2 2025 results, delivering a slight revenue beat but missing on earnings. The company also announced a sweeping restructuring plan that includes significant workforce reductions and operational cutbacks across global facilities.

📌 Intel Q2 2025 Earnings Snapshot

• Revenue: $12.9 billion (above estimates of ~$11.95B)
• GAAP EPS: –$0.67
• Non-GAAP EPS: –$0.10 (missed estimate of $0.01)
• Gross Margin (Non-GAAP): 29.7% (down from 38.7% YoY)
• Cash from Operations: ~$2.1 billion

Intel delivered a revenue beat but missed on both GAAP and adjusted earnings. Gross margins compressed sharply year-over-year, reflecting higher costs and restructuring impacts.

🏭 Segment Breakdown:

🔧 Restructuring & Strategy:

• Restructuring Charges: $1.9B in Q2, including $800M in impairment and $200M in other one-time costs.
• Job Cuts: Reducing workforce from ~99,500 to ~75,000 by year-end (~24% cut).
• Global Realignment: Scaling back operations in Germany, Poland, and Ohio; consolidating Costa Rica operations into Vietnam and Malaysia.
• 2025 Non-GAAP OpEx Target: $17B (down to $16B in 2026).
• Capital Spending: ~$18B in capex guided for full year.

🧠 Management Commentary:

CEO Lip-Bu Tan said the results reflect early signs of progress in Intel’s turnaround. He reaffirmed focus on Intel’s AI roadmap and next-gen process nodes, highlighting advancement from 18A to 14A. Cost control, product execution, and manufacturing discipline remain top priorities.

🔮 Q3 2025 Outlook:

📉 Market Reaction:

Intel shares declined approximately 3.6% in after-hours trading following the earnings release, with investors reacting negatively to the EPS miss and the scale of restructuring despite the revenue beat.