Intel's Q2 2025 Earnings Show Big Change With Mix of Good and Bad News
Intel's report for the second quarter of 2025 shows the company is making big changes. Even though they made more money than people thought they would, they did not do as well on earnings per share. They are also cutting a lot of jobs and might stop trying to be the best in chip making. This points to a new time of being careful with money under CEO Lip-Bu Tan.
Intel CEO Lip-Bu Tan Talks About Money Plans
Q2 2025 Money Details The Main Points
Here's how Intel did from April to June:
- Money Made: $12.859 billion, more than the $11.87 billion guess.
- Earnings Per Share (EPS): -$0.1 (non-GAAP), not meeting the $0.01 guess.
- Total Profit: 29.7% (non-GAAP), not as good as the hoped for 36.5%.
Money from Parts of the Company:
- Main Computers: $7.871 billion
- Data and AI: $3.939 billion
- Intel Factory: $4.417 billion
What's Next for Intel's Factory
Big news is about what will happen with Intel's factory. They said they might stop or slow down their work on their top new tech if they can't get enough customers. This means they might not try to be as good as their big rival, TSMC.
They're talking about if they should focus on their new 14A tech or keep the 18A tech, which might cost them a lot of money. But, they're seeing better results with the 18A now, with a 55% success rate.
Big Cuts A Lot of Jobs Cut
Intel said they are cutting their workers by 15%, adding to the big job cuts from 2023 and 2024. They want to bring their workers down to 75,000 from 99,500. This is part of the new CEO's plan to lose less money and be more careful with spending. They're also shutting down their sites in Germany and Poland.
Looking at Q3 and How the Market Reacted
In spite of hard times, the stock market liked the news, and Intel's stock went up about 3% after hours. For the next quarter, they think they will make about $13.1 billion.
The new CEO, Lip-Bu Tan, talked up their main products and plans for AI, while aiming to run a tighter, more money-careful factory. This shows that tough choices, especially about the factory, are not over as Intel moves to a more reliable profit path.
