Intel(INTC) - 2025 Q2 - Quarterly Results

Financial Performance - Second-quarter 2025 revenue was $12.9 billion, flat year-over-year (YoY) [7] - Second-quarter GAAP EPS attributable to Intel was $(0.67), a decrease of 76% compared to the previous year [10] - Forecasting third-quarter 2025 revenue between $12.6 billion and $13.6 billion, with expected GAAP EPS of $(0.24) [7] - Net revenue for Q2 2025 was $12,859 million, a slight increase from $12,833 million in Q2 2024 [26] - Gross profit decreased to $3,542 million in Q2 2025, down from $4,547 million in Q2 2024, reflecting a gross margin decline [26] - Operating loss for Q2 2025 was $(3,176) million, compared to a loss of $(1,964) million in Q2 2024 [26] - Net income attributable to Intel for Q2 2025 was $(2,918) million, worsening from $(1,610) million in Q2 2024 [26] - Non-GAAP gross profit for Q2 2025 was $3,813 million, down from $4,966 million in Q2 2024, reflecting a decrease of 23.1% [41] - Non-GAAP operating loss for Q2 2025 was $(503) million, compared to a profit of $24 million in Q2 2024, indicating a significant decline in operational performance [41] - Non-GAAP net income attributable to Intel for Q2 2025 was $(441) million, a decrease from $83 million in Q2 2024 [41] - Adjusted free cash flow for Q2 2025 was $(1,050) million, a significant decline from $8,155 million in Q2 2024 [42] Expenses and Costs - Intel plans to achieve $17 billion in non-GAAP operating expenses for 2025, having reduced its core workforce by approximately 15% [8] - The company recognized $1.9 billion in restructuring charges in Q2 2025, impacting GAAP EPS by $(0.45) per share [9] - Intel's gross margin for Q2 2025 was 27.5%, down 7.9 percentage points from the previous year [10] - GAAP operating expenses for full-year 2025 are projected to be $22.1 billion, with non-GAAP operating expenses expected to be $17.0 billion [47] Assets and Liabilities - Total current assets decreased to $43,375 million as of June 28, 2025, down from $47,324 million at the end of 2024 [28] - Cash and cash equivalents increased to $9,643 million as of June 28, 2025, compared to $8,249 million at the end of 2024 [28] - Total liabilities decreased to $86,993 million as of June 28, 2025, down from $91,453 million at the end of 2024 [28] - Total stockholders' equity increased to $105,751 million as of June 28, 2025, compared to $105,032 million at the end of 2024 [28] Capital Expenditures - Intel's gross capital expenditures for 2025 are projected to be $18 billion, with actions taken to optimize manufacturing and improve capital efficiency [8] - Full-year 2025 non-GAAP net capital expenditures are projected to be between $8.0 billion and $11.0 billion, with GAAP additions to property, plant, and equipment estimated at $18.0 billion [47] - Additions to property, plant, and equipment for the first half of 2025 were $(8,733) million, down from $(11,652) million in the same period of 2024 [30] Revenue Segments - The Data Center and AI (DCAI) segment revenue increased by 4% to $3.9 billion, while the Client Computing Group (CCG) revenue decreased by 3% to $7.9 billion [13] Future Projections - The projected non-GAAP tax rate for 2025 is 12%, down from 13% in 2024, reflecting changes in tax strategy and geographic earnings mix [35] - For Q3 2025, the company expects a non-GAAP gross margin percentage of 36.0%, compared to a GAAP gross margin percentage of 34.1% [44] Product Developments - Intel launched three new CPUs in the Intel® Xeon® 6 series, enhancing GPU performance for AI workloads [18] - The company sold 57.5 million net Class A shares of Mobileye, adding approximately $922 million to its balance sheet [18]