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Margins & Cost Pressure
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GAAP gross margin dropped to 27.5% (from 35.4%).
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Non-GAAP margin fell to 29.7%, impacted by $800M in impairments and one-time costs.
Despite aggressive cost-cutting, structural profitability remains elusive. Intel still targets $17B in non-GAAP OpEx for 2025 and $16B in 2026.
Intel Foundry Progress
Intel’s Foundry business grew 3% YoY to $4.4 billion, but the company is now slowing construction in Ohio and pulling out of planned builds in Germany and Poland. Capex remains at $18B for 2025, but with a more targeted approach — a sign of tighter financial stewardship.
CCG & DCAI
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Client Computing Group (CCG) revenue fell 3% YoY to $7.9B.
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Data Center & AI (DCAI) grew 4% to $3.9B, helping offset PC headwinds.
Investors hoping for a stronger consumer recovery will likely be disappointed, though DCAI traction offers some support.
On AI Chips
Intel launched new Xeon 6 CPUs and confirmed that its Xeon 6776P is being used in NVIDIA’s DGX B300 system. That’s a headline win, but no major updates were offered on Gaudi AI chip adoption or external design wins — a key watchpoint given the fierce competition from Nvidia and AMD.
CEO Commentary
CEO Lip-Bu Tan emphasized execution and discipline, calling out restructuring progress and a renewed focus on Intel’s core product and AI roadmap. CFO David Zinsner highlighted headcount reductions and improved capital allocation. However, the market may interpret the heavy charges and flattish outlook as signs that recovery will be slower than hoped.
Guidance
Intel guided for Q3 revenue of $12.6–$13.6 billion, largely flat sequentially. GAAP EPS is forecasted at $(0.24), with non-GAAP EPS at $0.00, signaling no immediate EPS rebound despite cost-cutting efforts.
| Metric | Q3 2025 Guidance | Q2 2025 Actual | YoY Commentary |
|---|---|---|---|
| Revenue | $12.6B–$13.6B | $12.9B | Flat-to-slight up YoY |
| EPS (non-GAAP) | $0.00 | $(0.10) | No earnings growth |
Intel Beats on Rev, Shares up 3%
Intel posted a steep earnings miss in Q2 2025, swinging to a GAAP loss of $(0.67) per share and non-GAAP loss of $(0.10) — far below Wall Street’s expectation of $0.01 profit. Revenue came in at $12.9 billion, modestly ahead of the $11.88B consensus.
| Metric | Reported | Estimate | Surprise |
|---|---|---|---|
| Revenue | $12.9B | $11.88B |  Beat |
| EPS (GAAP) | $(0.67) | $0.01 |  Miss |
| EPS (non-GAAP) | $(0.10) | $0.01 | Miss |
Key drivers of the earnings miss included $1.9 billion in restructuring charges, $800 million in impairment costs, and a gross margin drop to 27.5% GAAP (down nearly 8 points YoY).
How Intel Performed After Recent Quarters
Intel’s post-earnings moves are highly sensitive to earnings surprise — both upside and downside. Last quarter’s 2,770% beat led to a 16.7% 14-day gain. But Q3 and Q2 of last year show the downside can be just as sharp.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2025 | +2,769.8% | +5.70% | +10.20% | +16.70% |
| Q4 2024 | +8.7% | +2.50% | +3.90% | +6.10% |
| Q3 2024 | −1,533.5% | −11.90% | −17.80% | −23.10% |
| Q2 2024 | −80.2% | −8.20% | −14.50% | −20.00% |
Intel (Nasdaq: INTC) reports second-quarter earnings after the close today. This comes just one quarter after a massive upside EPS surprise, when the company delivered $0.13 versus flat expectations. While Wall Street expects just $0.01 in profit this quarter, investors are hoping for margin stability, execution on AI products, and updates on Intel Foundry customer traction.
Estimates suggest Q2 could mark the bottom in earnings, with full-year EPS expected to rebound sharply — but execution will be everything.
What to Expect from Intel’s Q2 Report
| Metric | Estimate | YoY Change |
|---|---|---|
| Revenue | $11.88 billion | −7.4% |
| EPS (GAAP) | $0.01 | −53.3% |
| Full-Year EPS (2025) | $0.29 | +322.2% |
| Full-Year Revenue | $50.39 billion | −5.1% |
Intel is expected to post a steep YoY revenue decline, with analysts forecasting just $0.01 in profit. For the full year, however, EPS is expected to surge more than 300% from 2024 levels, according to estimates provided in the Yahoo Finance.
Key Areas to Watch in Intel’s Earnings Call
1. Foundry Business & External Customer Wins
Intel Foundry is a long-term bet, but the Street wants near-term proof points. Last quarter, CEO Pat Gelsinger mentioned “strong interest” in Intel 18A — today, look for real customer names or expanded pipeline commentary.
2. Margins, Gross Profit and Cost Control
Q1 gross margins came in ahead of expectations at 41%. The company attributed this to “disciplined OpEx” and improved ASPs. With just $0.01 in EPS forecast for Q2, margin preservation is critical.
3. AI-Driven Product Demand
While Nvidia dominates the high-end GPU space, Intel is positioning its Gaudi chips for AI training and inferencing. Management’s tone and any design wins here could boost sentiment.
4. PC Market Commentary
PC sales remain a major earnings lever. Intel has seen “channel normalization” and improving trends in commercial demand — if that continues, it could lift second-half forecasts.
5. Capital Spend and CHIPS Act Subsidies
With massive investment plans in Arizona, Ohio, and abroad, cash burn and funding timing remain hot-button issues. Expect analysts to push for CHIPS Act updates and capex efficiency.
The post Earnings Live: Coverage of Intel’s Quarterly Numbers appeared first on 24/7 Wall St..
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Author: Joel South
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