Intel’s Sales Top Estimates, But Profits Miss Amid Turnaround Efforts

Intel (INTC) posted quarterly sales that exceeded analysts’ expectations, but profits missed as the chipmaker works to turnaround its business. 

Second-quarter revenue of $12.86 billion topped projections as Intel’s foundry business grew 3% to $4.4 billion, ahead of estimates. However, the chipmaker posted an adjusted net loss of $441 million, or 10 cents per share, compared to a profit of $83 million, or 2 cents per share a year earlier. Analysts tracked by Visible Alpha had been looking for adjusted net income of $76.3 million, or 2 cents per share.

In a memo to employees released along with Intel’s earnings, CEO Lip-Bu Tan said “we are making hard but necessary decisions to streamline the organization, drive greater efficiency and increase accountability at every level of the company.”

Some of those moves include layoffs, with Intel planing to trim its headcount by 15%. Tan said that would leave the company with roughly 75,000 employees at the end of 2025, down from nearly 109,000 at the end of 2024.

Intel also said it will no longer be moving forward with previously planned projects in Germany and Poland. The chipmaker warned it would slow the construction of its new chipmaking facilities in Ohio as well. 

Looking ahead, Intel said it expects third-quarter revenue of $12.6 billion to $13.6 billion, above the analyst consensus compiled by Visible Alpha. The chipmaker’s estimate of breakeven adjusted earnings per share missed the 5 cents called for by Wall Street.

Intel shares fell close to 4% in after-hours trading following the company’s earnings call. The stock was up about 13% for 2025 through Thursday’s close.

This article has been updated since it was first published to include additional information and reflect more recent share price values.