Intel Corporation reported second-quarter revenue of $12.9 billion, maintaining year-over-year levels amid a broader industry transition. While Intel earnings reflected near-term charges tied to restructuring and one-time costs, the company remains focused on execution, operational discipline, and long-term growth.
“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” said Lip-Bu Tan, CEO, Intel. “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.”
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Non-GAAP EPS stood at a modest $(0.10), with reported GAAP EPS at $(0.67), impacted by a $1.9 billion restructuring initiative and $800 million in impairment-related charges. The company stated these moves are part of its strategy to enhance cost efficiency and streamline operations.
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“Our results reflect solid demand across our business and good execution on our priorities,” said David Zinsner, CFO on Intel Earnings. “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.”
In terms of business unit performance, Intel’s Data Center and AI (DCAI) group posted a 4% revenue increase year-over-year, reaching $3.9 billion, driven by continued demand for AI-related infrastructure. The Intel Foundry business also saw a 3% increase, generating $4.4 billion in revenue as the company expands its manufacturing services. The Client Computing Group (CCG) reported $7.9 billion, down 3% from last year, reflecting soft consumer PC demand. Meanwhile, revenue from “All Other” business segments grew significantly by 20%, reaching $1.1 billion highlighting momentum in emerging and adjacent areas. Total Intel Products revenue stood at $11.8 billion, down just 1% YoY.
Looking ahead, Intel has provided Q3 guidance in the range of $12.6 billion to $13.6 billion in revenue. It expects non-GAAP EPS to break even and GAAP EPS at a narrower loss of $(0.24). Notably, Intel reaffirmed its commitment to financial discipline, targeting $17 billion in non-GAAP operating expenses for 2025 and a further reduction to $16 billion in 2026. Capital investments remain robust, with $18 billion in gross capital expenditures planned for this year to support future growth and manufacturing scale.
