Intel’s Q2 2025 financial results reflect a company in transition. The semiconductor giant reported $12.9 billion in revenue, outperforming analysts’ expectations of $11.9 billion. However, despite the top-line beat, Intel recorded a significant net loss of $2.9 billion, primarily due to restructuring expenses.
New CEO Lip-Bu Tan is taking decisive action, launching a multi-billion-dollar cost-reduction plan that includes cutting 15% of the workforce and withdrawing from key chip manufacturing projects in Germany and Poland. Additionally, Intel is slowing the construction of a major fabrication facility in Ohio and shifting operations from Costa Rica to Asia to reduce expenses.
Performance Highlights
|
Q2 2025 Results |
| Revenue | $12.9 Billion (vs. $11.9B expected) |
| Net Loss | $2.9 Billion |
| Adjusted EPS | -$0.10 |
| Foundry Revenue | $4.4 Billion (up 3% YoY) |
| Client Computing Revenue | Declined ~3% |
| Headcount Reduction Target | 15% (down to 75,000 employees) |
| Major Restructuring Cost | $1.9 Billion |
Tan emphasized a return to disciplined investment and greater operational efficiency. “No more blank checks,” he stated, highlighting that all future projects must meet clear financial standards. Intel will also scale back its more experimental chip projects, such as the advanced 18A process, and instead focus on commercial-ready technologies like 14A nodes and Gaudi AI chips.
Intel projects Q3 revenue between $12.6 billion and $13.6 billion, slightly above current estimates. However, the company expects break-even earnings per share, which is below analyst predictions of $0.05, reflecting continued investment and restructuring activities.
Despite near-term headwinds, Intel’s turnaround plan aims to reestablish its competitive edge in both traditional chipmaking and emerging AI hardware markets.
