Intel (INTC) posted quarterly gross sales that exceeded analysts’ expectations, however earnings missed because the chipmaker works to turnaround its enterprise.
Second-quarter income of $12.86 billion topped projections as Intel’s foundry enterprise grew 3% to $4.4 billion, forward of estimates. Nevertheless, the chipmaker posted an adjusted internet lack of $441 million, or 10 cents per share, in comparison with a revenue of $83 million, or 2 cents per share a 12 months earlier. Analysts tracked by Seen Alpha had been searching for adjusted internet revenue of $76.3 million, or 2 cents per share.
In a memo to staff launched together with Intel’s earnings, CEO Lip-Bu Tan stated “we’re making onerous however vital choices to streamline the group, drive better effectivity and enhance accountability at each degree of the corporate.”
A few of these strikes embrace layoffs, with Intel planing to trim its headcount by 15%. Tan stated that would go away the corporate with roughly 75,000 staff on the finish of 2025, down from almost 109,000 on the finish of 2024.
Intel additionally stated it is going to now not be transferring ahead with beforehand deliberate tasks in Germany and Poland. The chipmaker warned it could sluggish the development of its new chipmaking amenities in Ohio as effectively.
Trying forward, Intel stated it expects third-quarter income of $12.6 billion to $13.6 billion, above the analyst consensus compiled by Seen Alpha. The chipmaker’s estimate of breakeven adjusted earnings per share missed the 5 cents referred to as for by Wall Avenue.
Intel shares fell near 4% in after-hours buying and selling following the corporate’s earnings name. The inventory was up about 13% for 2025 by way of Thursday’s shut.
This text has been up to date because it was first printed to incorporate extra data and replicate newer share worth values.
