The company forecast Q3 revenue of $12.6 billion to $13.6 billion.
2025 capex will be $18 billion. Opex for 2025 is targeted at $17 billion and for 2026 at $16 billion.
Intel’s intention is to have 75,000 employees by the end of the year down from 99,500 at the end of 2024.
Intel is changing its strategy for building manufacturing capacity and will now only build fabs when the demand is there.
In a note to employees CEO Lip-BucTan (pictured) wrote:
“Over the past several years, the company invested too much, too soon – without adequate demand, In the process, our factory footprint became needlessly fragmented and underutilized.”
The 14A process will be built out based on confirmed customer commitments, said Tan. “There are no more blank checks. Every investment must make economic sense,” wrote Tan.
Work on the Ohio fabs will slow down and the planned German and Poland plants will not be built.
Q2 2025 Financial Results
|
GAAP |
Non-GAAP |
||||||
|
Q2 2025 |
Q2 2024 |
vs. Q2 2024 |
Q2 2025 |
Q2 2024 |
vs. Q2 2024 |
||
|
Revenue ($B) |
$12.9 |
$12.8 |
flat |
||||
|
Gross margin |
27.5% |
35.4% |
down 7.9 ppts |
29.7% |
38.7% |
down 9 ppts |
|
|
R&D and MG&A ($B) |
$4.8 |
$5.6 |
down 13% |
$4.3 |
$4.9 |
down 13% |
|
|
Operating margin (loss) |
(24.7)% |
(15.3)% |
down 9.4 ppts |
(3.9)% |
0.2% |
down 4.1 ppts |
|
|
Tax rate |
(9.2)% |
17.5% |
down 26.7 ppts |
12.0% |
13.0% |
down 1 ppt |
|
|
Net income (loss) attributable to Intel ($B) |
$(2.9) |
$(1.6) |
down 81% |
$(0.4) |
$0.1 |
*n/m |
|
|
Earnings (loss) per share attributable to Intel—diluted |
$(0.67) |
$(0.38) |
down 76% |
$(0.10) |
$0.02 |
*n/m |
|
“Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency,” said Tan, “we are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. 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.”
Product Group results
(In Q1 the Network and Edge Group (NEX) was integrated into CCG and DCAI.)
|
Business Unit Revenue and Trends |
Q2 2025 |
vs. Q2 2024 |
|||
|
Client Computing Group (CCG) |
$7.9 billion |
down |
3% |
||
|
Data Center and AI (DCAI) |
$3.9 billion |
up |
4% |
||
|
Total Intel Products revenue |
$11.8 billion |
down |
1% |
||
|
Intel Foundry |
$4.4 billion |
up |
3% |
||
|
All Other |
$1.1 billion |
up |
20% |
||
|
Intersegment Eliminations |
$(4.4) billion |
||||
|
Total net revenue |
$12.9 billion |
flat |
|||
