Intel Q2 2025 Earnings Beat Expectations Amid Foundry Investment Cuts and Strategic Restructuring
Intel Q2 2025 Earnings Beat Expectations
Intel reported its second-quarter 2025 financial results with revenues of $12.9 billion, flat compared to the previous year, which beat Wall Street’s low expectations. Despite a net loss of $2.9 billion due to restructuring and impairment charges, the company’s underlying demand remained solid.
CEO Lip-Bu Tan’s Strategic Shift
Since taking over as CEO in March 2025, Lip-Bu Tan has pushed for a bold turnaround strategy focused on operational efficiency, streamlining management, and a renewed focus on engineering excellence. The company cut about 15% of its workforce and is targeting a reduction of $17 billion in operating expenses for the year.
Cutting Foundry Investments
Intel announced significant spending cuts in its foundry division, responsible for making chips for other companies. The foundry reported an operating loss of $3.17 billion on $4.4 billion in revenue. Planned factory projects in Germany and Poland were cancelled, and testing and assembly operations will be consolidated in Vietnam and Malaysia. The pace of building the new Ohio chip factory slowed to align with market demand.
Financial and Market Highlights
- Client computing group sales declined 3% to $7.9 billion.
- Data center group revenue increased 4% to $3.9 billion, driven partially by AI chips.
- Intel’s stock was up approximately 13% in 2025 after a 60% drop in 2024.
- Third-quarter revenue guidance is $12.6-$13.6 billion with adjusted EPS expected to break even.
Outlook
Intel is focused on leveraging its AI roadmap and strengthening its product portfolio, with an emphasis on disciplined investments and customer commitments. CEO Tan stated, “There are no more blank checks. Every investment must make economic sense.”
The company’s efforts signal a turnaround attempt to regain market share from competitors such as AMD and Nvidia while adjusting to the evolving semiconductor and AI chip markets.
