Intel Q2 revenue tops estimates, will slash workforce

Yahoo

24-07-2025

Intel (INTC) reported a second quarter adjusted loss of $0.10 per share. The expectation was for a profit of $0.01 per share. Revenue was $12.86 billion versus a Bloomberg consensus estimate of $11.88 billion. For Q3, the chip giant expects to see revenue of $12.6 billion to $13.6 billion compared to an expected $12.64 billion. Intel also said it will cut about its headcount by about 15%.
Market Domination Overtime Host Josh Lipton and Bullseye American Ingenuity Fund portfolio manager Adam Johnson break down the results.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Intel just crossing the wires here. Let's get to those numbers. It looks like Intel Q2 adjusted loss per share of 10 cents. Looks like the estimate was more like EPS of 1.1 cent. I'm looking for the revenue number, Q2 revenue 12.86 billion. The street was at 11.88 billion. Looking ahead, let's see what they have to say for guidance, Q3 revenue they're calling for between 12.6 billion to 13.6 billion. The street was more along the lines of 12.64 billion. Uh looking for CapEx guidance, expects CapEx to be lower in 2026. They say 2025 CapEx they're calling for about 18 billion. Do have some head count news as well. It looks like they're aiming for head count of 70,000 by year end job reduction actions total, it says here 15%. Uh looking at the immediate reaction in the stock, Adam Johnson, we're up around 4% in the after hours. Interestingly,
Yes.
You used to own this name, you were in Intel, then you got out of Intel, how come?
I did.
I was.
Yeah.
It's too hard. And I don't think they know what they want to be. Though I will also note, today's numbers are pretty good and most notably the revenue guidance that you just mentioned, uh the the original number was 12.6 billion and they're saying it's actually now going to be 12.6 to 13.6. So they guided up their forward revenues. That's positive. But again, my problem is this company can't figure out, and they've literally flip-flopped several times. They can't figure out whether they want to make chips or whether they want to design chips or they want to actually do both, which is what they used to do. And so that's been the problem. They just haven't clarified their way forward. You know, I think the thing that would be most interesting is if they were to split into two, and they were actually to create two separate companies, Intel manufacturing and Intel designs. And then we'd have clarity on both and we could set separate price uh metrics on each and therefore price targets on each, but right now it's a mishmash and it's kind of tough to quantify.
Yeah, to your point, the headline here so far that they did seem to offer this stronger than expected revenue forecast for the current period. I think that helps explain this pop 5% in the after hours. Third quarter sales 12.6 to 13.6. Analysts looks like consensus had projected number at the low end of that range there.
And by the way, Josh, for for those who are watching and and say, gosh, I want to get on board, maybe I should buy some Intel. Actually, go buy some Nvidia. It's easier. Because if if Intel is guiding up revenues, you can be sure that Nvidia is going to be guiding up revenues and that's a more obvious way to uh try to participate on the upside and Nvidia reports in a few weeks. So that would be that would be I don't trade numbers. I'm not, you know, I I'm a buy and hold investor, but if I were trying to uh benefit from this news, I would go and just buy myself a little Nvidia.