Intel reports second-quarter 2025 financial results

DBT Bureau

Pune, 26 July 2025

News Summary

• Second-quarter revenue was $12.9 billion, flat year-over-year (YoY).
• Second-quarter earnings (loss) per share (EPS) attributable to Intel was $(0.67); non-GAAP EPS attributable to Intel was $(0.10).
• $(0.45) impact to GAAP EPS attributable to Intel from $1.9 billion of restructuring charges; $(0.23) and $(0.20) impact to GAAP and non-GAAP EPS attributable to Intel, respectively, from $800 million of impairment charges and $200 million in one-time period costs.
• Forecasting third-quarter 2025 revenue of $12.6 billion to $13.6 billion; expecting third-quarter EPS attributable to Intel of $(0.24) and non-GAAP EPS attributable to Intel of $0.00.
• Taking actions to drive improved execution and efficiency; continue to target $17 billion of non-GAAP¹ operating expenses in 2025 and $16 billion in 2026; $18 billion in gross capital expenditures for 2025.

Intel Corporation reported second-quarter 2025 financial results.

“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” said Lip-Bu Tan, Intel CEO. “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. “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.”

Progress on Driving Greater Efficiency and Execution

Intel continues to make progress to simplify its business, improve efficiency and enhance execution. These efforts are focused on reducing expenses, strengthening the balance sheet, optimizing the global footprint and concentrating resources on the most critical growth areas.

• On track to achieve $17 billion non-GAAP operating expense target for 2025: 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.
• Improving capital efficiency; driving to gross capital expenditures of $18 billion for 2025: 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.

Business Highlights

• Intel launched three new additions to its Intel® Xeon® 6 series of central processing units (CPUs), delivering customizable CPU core frequencies to boost graphics processing unit (GPU) performance across demanding AI workloads. One of these, the Intel® Xeon® 6776P processor, currently serves as the host CPU for NVIDIA DGX B300, the company’s latest generation of AI-accelerated systems.
• The first Panther Lake processor SKU remains on track to begin shipping later this year, with additional SKUs coming in the first half of 2026.
• Intel 18A reached a key milestone with the start of production wafers in Arizona.
• Intel made key leadership appointments, including Greg Ernst as chief revenue officer and Srinivasan Iyengar, Jean-Didier Allegrucci and Shailendra Desai in key engineering leadership roles.
• In line with Intel’s commitment to strengthen its balance sheet and monetize non-core assets, the company sold, via a secondary offering, 57.5 million of net Class A shares of Mobileye in July 2025, adding approximately $922 million to the balance sheet. Intel remains the majority shareholder in Mobileye and continues to have strong conviction in its long-term growth opportunity.

Business Outlook

Intel’s guidance for the third quarter of 2025 includes both GAAP and non-GAAP estimates as follows: