Intel Q2 2025 Earnings Revenue Beats Expectations, But Losses Are Hard to Ignore {update}

Intel posted a massive loss. We’re talking about a $2.9 billion hit. On a per-share basis, the loss came out to $0.67 under GAAP standards. Adjusted numbers weren’t much better, showing a $0.10 loss per share. Analysts had hoped for a tiny profit, so this was a disappointment.

Where did all the money go?

A huge chunk of the damage came from one-time expenses. Intel spent nearly $1.9 billion on restructuring. That alone shaved $0.45 off earnings per share. Then there was another $800 million in asset write-downs and $200 million on other cleanup costs. Add it up, and the company bled heavily this quarter.

Here’s a quick breakdown of Intel’s major business segments:

The PC market isn’t doing Intel any favors. Sales in that segment continue to slide. But their AI and Foundry divisions? Slowly climbing.

Now let’s talk layoffs. Intel is planning to cut about 24,000 jobs. That’s roughly 15% of the company’s workforce. It’s part of a bigger effort to slash costs and reset the business. Plants in Germany and Poland are being scrapped. Costa Rica’s operations are being moved to Vietnam and Malaysia. Ohio’s construction is also being put on hold. These aren’t small moves. Intel is trimming everything that doesn’t serve its next chapter.

The company says these cuts could save them around $17 billion a year. That’s a big number. But these kinds of shake-ups always come with risk.

Looking ahead, Intel’s Q3 forecast is a bit of a mixed signal. They expect revenue to land somewhere between $12.6 billion and $13.6 billion. Not bad. But they’re only predicting break-even earnings, or possibly another small loss. For investors hoping for a turnaround, that’s not exactly the kind of momentum they wanted to see.

Intel’s not standing still though. The CEO made it clear they’re all-in on AI and next-gen chips. New lines like Panther Lake and Nova Lake are being designed to push the company back into the lead. Whether they actually get there is another story.

Wall Street didn’t like what it saw. After the report dropped, Intel’s stock slid nearly 4% in after-hours trading. Investors liked the revenue numbers, but the losses and cloudy outlook hit hard.

Right now, Intel feels like a company caught between two versions of itself. The old chip giant, still weighed down by past mistakes. And the newer, leaner version, trying to stay relevant in a world led by Nvidia and AMD.

The next couple of quarters are going to matter a lot. If Intel’s AI bets pay off, this rough patch might be just a chapter in a comeback story. But if they miss again, the road back gets even steeper.

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