As was the case in the first quarter of the year, Intel likely benefitted from a pull-forward of demand in the second quarter, as clients tried to front-run sector specific tariffs on semiconductors.
Intel (INTC) Earnings For The Second Quarter Of 2025
Intel's Quarterly Revenue In Billions Of Dollars
For the three months that ended on the 30th of June, Intel has reported $12.859 billion in non-GAAP revenue, beating consensus expectations of $11.87 billion.
Revenue From Intel's Business Segments In Billions Of Dollars
Intel has reported a total products revenue of $11.81 billion for the quarter. It's foundry haul stood at $4.417 billion in Q2. Consensus estimates in the above chart have been sourced from here. As an aside, do note that the 'other' revenue category for Q2 2024 also includes the haul from Intel's Network and Edge segment, which was recently eliminated.
Intel has reported a non-GAAP gross margin of 29.7 percent for the quarter against its own guidance of 36.5 percent.
Intel's Non-GAAP EPS In Dollars
Finally, Intel earned -$0.1 in EPS (non-GAAP), missing consensus expectations of $0.01.
Here is the company's guidance for the third quarter of 2025:
Intel is now guiding to $13.1 billion in revenue for the third quarter (based on the mid-point of the given range), which equates to a sequential rise of 1.87 percent.
Separately, Intel is slashing its workforce by 15 percent from its previous strength of 99,500 (as of the end of 2024). Bear in mind that Intel culled 15,000 jobs in 2023, and a further 15,000 in 2024. Intel is also closing its plants in Germany and Poland.
Investors have reacted positively to the company's latest earnings release, with the stock currently up around 3 percent in after-hours trading.
Of course, analysts and investors alike will scrutinize Intel's upcoming earnings call to deduce any underlying inclination to prioritize its next-gen 14A process over the current-gen 18A process, which is deemed largely compatible with TSMC's next-gen 2nm node process. Reuters has reported that such a change is in the offing.
If Intel does end up prioritizing 14A, it would have to absorb significant write-offs related to its 18A process, possibly amounting to billions of dollars. Even so, the company's CEO remains under immense pressure to chart a viable path to sustainable profits.
Do note that Intel's CFO, David Zinsner, clarified during the earnings call that the chipmaker currently has no plans to de-prioritize its 18A process:
"Maybe I'll just add one more thing. If I understood the last question, can you still do 18A, I think, is what you said. We actually won't get to peak volumes on 18A until probably the beginning of the next decade. So this is going to be a node that we use for a very long time, and we're expecting a really good ROI on it. We largely are, let's say, calculating that based on the internal uses for it given that most of that is coming internally in the near term. I would say I wouldn't write off 18A as potentially getting external customers at that point. We clearly -- we probably won't get a lot in wave 1 as it seems. But there will be multiple waves and 18A will be -- will find different use cases over time, and there'll be more opportunities for us to attract internal customers after we do so much improvement in terms of performance and yield on our own products."
Meanwhile, as we noted recently, KeyBanc now believes that the yields on Intel's 18A process have reached 55 percent, which represents a 5 percent quarter-on-quarter improvement, and are now close to achieving parity with TSMC's yields on its bespoke 2nm process.
Even so, Intel's new CEO, Lip-Bu Tan, now faces a "catch-22" situation: TSMC is the most optimal fab for Intel's products division, but jettisoning its foundry would immediately orphan billions of dollars in fixed costs that can't be covered without volume orders from the chipmaker's products division.
Note: The post has been updated with comments from Intel's CFO.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
