01—Abstract
Summary
Summary of the 10-Q filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Intel Corporation (INTC) reported its second quarter and first half 2025 financial results, demonstrating resilience in revenue while facing significant impacts from restructuring charges and investments in future technologies.
Despite a slight revenue increase year-over-year for the quarter, the company incurred a substantial net loss, largely due to elevated restructuring and other charges, including asset impairments related to manufacturing capacity rationalization. This quarter also saw strategic moves, including the announced sale of a controlling stake in Altera and progress in its foundry business, underscoring Intel's ongoing transformation. Despite the reported net loss, investors should note the company's continued investment in its leading-edge process technology roadmap, specifically Intel 18A and the development of Intel 14A, though the economic viability of the latter remains dependent on securing external customers.
The company's liquidity position remains strong, supported by cash flows from operations and existing credit facilities, alongside anticipated government incentives. Key business segments like Client Computing Group (CCG) and Data Center and AI (DCAI) showed varied performance, with CCG facing headwinds from reduced customer incentives and DCAI benefiting from hyperscale demand, indicating a mixed but dynamic operational landscape.
02—Key points
Key Highlights
- Total net revenue for Q2 2025 was approximately $12.86 billion, showing a slight increase from $12.83 billion in Q2 2024, indicating revenue stability.
- The company reported a significant net loss attributable to Intel of $2.92 billion ($0.67 loss per diluted share) for Q2 2025, a widening from the $1.61 billion loss ($0.38 loss per diluted share) in Q2 2024, largely due to substantial restructuring and other charges.
- Restructuring and other charges significantly increased to $1.89 billion in Q2 2025 from $0.94 billion in Q2 2024, driven by the new 2025 Restructuring Plan and ongoing 2024 initiatives.
- Intel Foundry reported an operating loss of $3.17 billion for Q2 2025, an increase from $2.80 billion in Q2 2024, impacted by non-cash asset impairment and accelerated depreciation charges of $797 million.
- The company has entered into an agreement to sell a 51% stake in its Altera subsidiary, expected to close in the second half of 2025, which will result in the deconsolidation of Altera.
- Intel's balance sheet shows total assets of $192.5 billion and total liabilities of $192.5 billion as of June 28, 2025, with total debt standing at $50.8 billion.
- Cash and cash equivalents increased to $9.64 billion as of June 28, 2025, from $8.25 billion at the end of 2024, while net cash provided by operating activities for the first six months of 2025 was $2.86 billion, an improvement from $1.07 billion in the prior year period.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, Intel Corp lost $0.23.
- Revenue$12.86B100.0%
- Cost of revenue−$9.32B72.5%
- Gross profit$3.54B27.5%
- Operating costs−$6.72B52.2%
- Operating income−$3.18B24.7%
- Interest, other & tax$258.0M2.0%
- Net income−$2.92B22.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 24, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $12.86B$12.83B | +0.2% |
| Cost of Revenue | $9.32B$8.29B | +12.4% |
| Gross Profit | $3.54B$4.55B | −22.1% |
| R&D Expenses | $3.68B$4.24B | −13.1% |
| SG&A Expenses | $1.14B$1.33B | −13.9% |
| Operating Expenses | $16.04B$6.51B | +146.3% |
| Operating Income | -$3.18B-$1.96B | −61.7% |
| Net Income | -$2.92B-$1.61B | −81.2% |
| EPS (Basic) | $-0.67$-0.38 | −76.3% |
| EPS (Diluted) | $-0.67$-0.38 | −76.3% |
| Shares Outstanding (Basic) | 4.37B4.27B | +2.4% |
| Shares Outstanding (Diluted) | 4.37B4.27B | +2.4% |
05—Questions
Frequently Asked Questions
What is the primary driver behind Intel's significant net loss in the second quarter of 2025?
The significant net loss in Q2 2025 is primarily driven by substantial restructuring and other charges totaling $1.89 billion, which include employee severance, asset impairments, and accelerated depreciation, particularly related to the new 2025 Restructuring Plan and ongoing 2024 initiatives. These charges, combined with the ongoing investments in future technologies and manufacturing, have impacted profitability.
How is Intel's foundry business performing, and what are the key challenges?
Intel Foundry reported an operating loss of $3.17 billion for Q2 2025. Key challenges include significant non-cash asset impairment and accelerated depreciation charges totaling $797 million, reflecting an evaluation of manufacturing asset utilization against projected market demand. The segment continues to incur operating losses as it invests in advanced process technologies and aims to secure external foundry customers.
What is the strategic significance of the Altera divestiture?
Intel has agreed to sell a 51% controlling stake in its Altera subsidiary, a move expected to close in the second half of 2025. This transaction is part of Intel's strategy to streamline its portfolio and focus on core businesses. Upon closing, Intel will deconsolidate Altera, recognizing significant cash proceeds and retaining a minority stake, while shifting its accounting for the investment to the equity method.
What is Intel's outlook regarding its advanced process technology roadmap, particularly Intel 14A?
Intel continues to invest in its leading-edge process technology roadmap, including Intel 18A and the development of Intel 14A. However, the company notes that the economic viability of Intel 14A and subsequent nodes is contingent on securing significant external foundry customers. Without such customers, Intel may pause or discontinue the development of these next-generation nodes, which carries strategic, financial, and reputational risks.
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