Intel Boosted by Strong PC Sales

Core Insights - Intel reported better-than-expected revenue for Q2 2025 but faced an unexpected loss due to impairment charges related to excess tools [3] - The company is undergoing significant restructuring under new CEO Lip-Bu Tan, including workforce reductions and cost optimization measures [4][8] Financial Performance - Revenue for Q2 2025 was $12.9 billion, a 1% increase from Q2 2024's $12.8 billion, beating expectations [2] - Adjusted EPS fell to -$0.10 from $0.02 in Q2 2024, indicating a miss [2] - Gross margin decreased to 27.5% from 35.4%, a drop of 790 basis points [2] - Intel Foundry revenue increased by 2% to $4.4 billion compared to Q2 2024's $4.3 billion [2][5] - Data center revenue was reported at $3.9 billion [6] Strategic Initiatives - The company has completed most of its plan to cut its workforce by 15% and is optimizing its manufacturing footprint [4] - Intel has decided to halt planned projects in Germany and Poland and will slow construction at a plant in Ohio to align spending with market demand [4] Market Reaction - Following the earnings report, Intel's shares rose approximately 2% in after-market trading, indicating a positive investor response despite the earnings miss [7] Future Outlook - Intel is guiding for Q3 2025 revenue between $12.6 billion and $13.6 billion, which would represent a slight decline year-over-year at the midpoint [9] - The company expects to break even on a per-share basis, a significant improvement from last year's third-quarter loss [9] - CEO Tan is focused on controlling costs before shifting attention to innovation, suggesting a long-term turnaround strategy [8]