Intel delivered second-quarter revenue of $12.9 billion, above the high end of analyst guidance, flat compared to results a year ago.
But Intel said its profitability was impacted by impairment charges and one-time period costs due to layoffs, but underlying performance was solid. The company has 101,400 people now and that will be as low as 75,000 a year from now.
The company continues to make progress to simplify its business, improve efficiency and enhance execution. Intel said it has completed the majority of its planned layoffs and it is on track to achieve $17 billion of operating expenses and $18 billion of capital expenditures for 2025.
Going forward, Intel is focused on becoming a more financially disciplined foundry, strengthening its core product portfolio and reinvigorating our x86 ecosystem, and refining its AI roadmap to focus on areas it can disrupt and differentiate, including inference and agentic AI.
Intel reported a Q2 GAAP loss of 67 cents a share, with non-GAAP EPS of a 10 cent loss. Intel said it had a 45-cent EPS negative impact of various restructuring charges. Restructuring accounting for 23 cents a share of negative impact and 20 cents on impairment charges and $200 million in one-time costs.
Intel is forecast third-quarter revenue of $12.6 billion to $13.6 billion, with a loss of 24 cents a share and non-GAAP EPS at breakeven. The company is targeting $17 billion in non-GAAP operating expenses in 2025 and $16 billion in 2026.
“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” said Lip-Bu Tan, Intel CEO, in a statement. “We “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, in a statement. “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.”
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. Intel has 101,400 employees today, compared 125,300 a year ago. That means there are still 25,000 or so cutbacks and early retirements still to come.
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. Intel has had a tough time competing with rivals such as Nvidia and Advanced Micro Devices.
It noted that Q2 revenue in its client computing group was $7.9 billion, down 3%. Data center and AI was $3.9 billion, up 4%. Intel foundry was $4.4 billion, up 3%. All other was $1.1 billion, up 20%, while intersegment eliminations were $4.4 billion, for a total net revenue of $12.9 billion.