Intel Q2 results show year-over-year foundry gains; restructuring charges hit EPS

Intel (NASDAQ:INTC) released its second quarter 2025 financial results after the market closed on Thursday, July 24, with mixed results as the company continues to reshape its strategy under the leadership of CEO Lip-Bu Tan.

For the quarter ended June 30, Intel reported adjusted earnings per share of $(0.10), which was less than the consensus estimate of $0.01. GAAP EPS was $(0.67) versus the consensus of $(0.28). Intel said the EPS was affected by $1.9B of restructuring charges, $800M of impairment charges and $200M in one-time period costs.

Revenue for the quarter totaled $12.9B, which was flat year over year but much more than the estimate of $11.88B. On a business segment level, Intel reported Client Computing Group revenue of $7.9B, which was down 3% year over year but more than the estimate of $7.29B. Data center and AI revenue fell 4% year over year to $3.9B, and was more than the estimate of $3.73B.

Intel Foundry revenue increased 3% year over year to $4.42B compared to the estimate of $4.39B.

Looking ahead, Intel expects third-quarter revenue to range from $12.6B to $13.6B, with a midpoint of $13.1B much more than the estimate of $12.64B.

The chipmaker projects an adjusted EPS of zero versus the estimate of $0.04.

“We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers,” said Intel CEO Lip-Bu Tan. “We are also taking the actions needed to build a more financially disciplined foundry. It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value.”

“The changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future,” added Intel CFO David Zinsner.

Intel highlighted that 18A has started production of wafers at its Arizona plant, and the first Panther Lake processor SKU remains to track to ship later this year.

“18a is on schedule for the 2nd half of the year volume startup,” said Seeking Alpha analyst Mark Mansius of Patient Tech Investor. “14A seems lurking in the shadows with its turbo-cell technology moving Intel to the forefront. This opens doors for major fab customers such as Apple (AAPL).”

“The President made it clear yesterday that American manufacturing and products must succeed,” Mansius added. “Intel is still the best hope for American manufacturing and state-of-the-art semi-product development. The company’s very solid 2nd quarter report and continued thrust for marrying products and fabs together reinforces this unique direction.”

Analysts were somewhat encouraged that the Foundry unit reported a year-over-year gain.

“As expected, Intel booked another loss this quarter,” said Seeking Alpha analyst Jack Bowman. “This is a continuation of the ‘it will get worse before it gets better,’ narrative that management is pushing while they clean up Intel and reshape its operations. Specifically, the foundry numbers are important to watch, as they have historically been one of the financial drags on Intel. The 3% increase in revenue from the foundry unit is a good sign, but it may just be a temporary fluctuation, as revenue overall was flat at $12.9B.”

Intel noted that it sold 57.5M Class A shares in Mobileye (MBLY).

“Most notable to me in the report is that MobilEye is being sold off in chunks, with Intel adding $922M to the balance sheet as a significant amount of MobilEye shares were sold off; Intel still maintains a majority stake with full divestiture unlikely from my view,” Bowman added.