Intel (INTC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $12.9 billion, flat year-over-year and above guidance, driven by strong client and data center demand, but profitability was impacted by $1.9 billion in restructuring and $800 million in impairment charges.

• Major initiatives included organizational restructuring, foundry strategy overhaul, x86 and AI focus, and significant headcount and management layer reductions to improve agility and execution.

• Strategic asset monetization included the announced sale of 51% of Altera for $4.4 billion and Mobileye share sales, with proceeds strengthening the balance sheet.

• Actions underway to optimize capital efficiency included halting projects in Germany and Poland, consolidating Costa Rica operations, and slowing Ohio construction.

• Focus areas included disciplined capital deployment, customer-centricity, engineering excellence, and operational execution.

Financial highlights

• Q2 2025 revenue was $12.9 billion, up $1.1 billion above outlook, with client and data center strength; GAAP gross margin was 27.5%, non-GAAP 29.7%, both impacted by one-time charges.

• Q2 2025 net loss attributable to shareholders was $2.9 billion (GAAP EPS $(0.67)), with non-GAAP EPS at $(0.10); operating loss was $3.2 billion GAAP.

• Operating cash flow was $2.1 billion; adjusted free cash flow was negative $1.1 billion.

• R&D and MG&A expenses for Q2 2025 were $4.8 billion GAAP, down 13% year-over-year.

• Cash and short-term investments at quarter end were $21.2 billion.

Outlook and guidance

• Q3 2025 revenue guidance: $12.6–$13.6 billion; gross margin ~36% non-GAAP; break-even non-GAAP EPS; GAAP EPS expected at $(0.24).

• 2025 OpEx target: $17 billion; 2026 OpEx target: $16 billion.

• 2025 gross CapEx expected at $18 billion; net CapEx $8–$11 billion; CapEx to decline in 2026.

• Altera divestiture expected to close in H2 2025; Mobileye stake monetized for $900–$922 million.

• Management expects restructuring actions to be substantially complete by Q4 2025, with a 15% workforce reduction.