Chipmaker reports $12.8B in Q2 revenue, restructures amid competitive pressure and manufacturing pivot
Intel (INTC) posted second-quarter results Thursday that exceeded Wall Street’s revenue expectations but missed on earnings per share (EPS), citing impairment charges. The company also announced a significant workforce reduction, planning to trim headcount by 15%—down to approximately 75,000 employees by year-end—as part of broader restructuring efforts.
Intel shares rose more than 2% in after-hours trading following the report.
For Q2, Intel reported an adjusted EPS loss of $0.10 on revenue of $12.8 billion. Analysts had projected a modest $0.01 profit on $11.8 billion in revenue, according to Bloomberg consensus estimates. The same quarter last year saw Intel break even at $0.02 EPS with the same revenue figure.
Despite the beat on top-line performance, Intel’s Products business, which includes client PCs and data center chips, delivered a disappointing $7.9 billion in revenue—well below the anticipated $10.9 billion. The company continues to face stiff competition from AMD and Qualcomm, both of which are gaining ground in the PC and AI chip segments.
Intel’s Foundry segment, its effort to manufacture chips for third-party customers, posted $4.2 billion in revenue, slightly under forecasts but still up 2% year-over-year. The unit is central to CEO Pat Gelsinger’s turnaround strategy, though its progress has been mixed.
Intel previously secured chip-making deals with Microsoft and Amazon using its 18A process, but reports suggest it may pivot to promoting its upcoming 14A technology due to cost and efficiency considerations.
With a $98 billion market cap, Intel trails far behind AMD ($262B) and AI powerhouse Nvidia (over $4T). The company is aggressively cutting costs, reportedly closing its automotive unit, outsourcing marketing functions, and reducing factory staffing.
Intel’s future hinges on its ability to regain leadership in chip manufacturing while navigating fierce industry competition and evolving technology demands.
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