Intel Corporation reported its second-quarter 2025 financial results, revealing a complex landscape marked by operational challenges and strategic initiatives aimed at long-term growth and efficiency. The company posted flat year-over-year revenue of \(12.9 billion, maintaining stability amid a turbulent semiconductor market. However, Intel faced significant profitability pressures, with a GAAP net loss attributable to Intel of \)2.9 billion, translating to a diluted loss per share of \(0.67, a 76% decline compared to the prior year. Non-GAAP loss per share was reported at \)0.10, reflecting adjustments for restructuring and impairment charges.
The quarter was heavily impacted by \(1.9 billion in restructuring charges, primarily related to workforce reductions of approximately 15%, aimed at creating a leaner, more agile organization. Additionally, Intel recognized \)800 million in impairment charges and \(200 million in one-time costs, which collectively reduced gross margin by approximately 800 basis points and EPS by \)0.23 (GAAP) and $0.20 (non-GAAP) per share. These charges were not included in prior guidance, underscoring the company’s commitment to transparency.
Operationally, Intel’s Client Computing Group (CCG) revenue declined 3% to \(7.9 billion, while the Data Center and AI (DCAI) segment grew 4% to \)3.9 billion, reflecting the company’s strategic focus on AI workloads and data center growth. Intel Foundry revenue increased 3% to $4.4 billion, signaling progress in its foundry business despite broader market headwinds.
Capital expenditure plans remain robust, with Intel targeting $18 billion in gross capital expenditures for 2025, emphasizing investments in manufacturing footprint optimization and advanced process technologies, including the milestone production start of Intel 18A wafers in Arizona. The company is also consolidating assembly and test operations in Costa Rica and slowing construction in Ohio to align spending with market demand.
Intel’s leadership highlighted the strategic importance of AI, with new Intel Xeon 6 series CPUs designed to enhance GPU performance for demanding AI workloads, including integration with NVIDIA’s DGX B300 AI systems. The upcoming Panther Lake processors are on track for shipment later this year, reinforcing Intel’s roadmap for next-generation computing solutions.
Financially, Intel generated \(2.1 billion in cash from operations in Q2 2025, but adjusted free cash flow was negative \)1.05 billion, reflecting heavy capital investments. The company is focused on reducing operating expenses, targeting \(17 billion in non-GAAP operating expenses for 2025 and \)16 billion for 2026, aiming to improve capital efficiency and strengthen its balance sheet.
This 8-K report aligns with themes from Intel’s previous earnings calls, emphasizing execution improvement, cost discipline, and strategic investment in AI and foundry capabilities. The restructuring and impairment charges, while significant, are part of Intel’s broader strategy to enhance competitiveness and profitability in a rapidly evolving semiconductor industry.
For investors and industry watchers, Intel’s Q2 2025 results underscore the challenges and opportunities in semiconductor manufacturing, highlighting the critical balance between innovation investment and operational efficiency. The company’s forward-looking guidance for Q3 2025 anticipates revenue between \(12.6 billion and \)13.6 billion, with non-GAAP EPS expected to break even, signaling cautious optimism amid ongoing market uncertainties.
Source Document: Intel Q2 2025 Earnings Release