Intel (INTC) reported quarterly sales exceeded analyst expectations, but lost money as chipmakers continued their business on track.
A $12.86 billion forecast was forecast as Intel’s Foundry Business rose 3% to $4.4 billion ahead of its estimate. However, chipmakers adjusted for a net loss of $441 million or 10 cents per share compared to previous year’s earnings of $83 million or 2 cents per share. Tracked by visible Alpha, analysts were looking for adjusted net income of $76.3 million, or 2 cents per share.
In a memo to employees released along with Intel’s revenue, CEO Lip-Bu Tan said, “We are making difficult but necessary decisions to streamline our organization, promote greater efficiency, and increase accountability at all levels of our company.”
These moves include layoffs, and Intel plans to trim 15% of its personnel. Tan said that by the end of 2025, roughly 75,000 employees will be leaving at the end of 2025.
Intel also said it would no longer move forward with previously planned projects in Germany and Poland. The chipmaker warned that construction of new chipmaking facilities in Ohio would be slower.
Looking ahead, Intel said it expects third-quarter revenues of between $12.6 billion and $13.6 billion, surpassing the consensus of analysts edited by Visible Alpha. Chipmaker’s estimates for adjusted earnings per share missed the five cents Wall Street calls.
Intel shares fell nearly 4% in after-hours trading, following the company’s revenue call. The share price rose about 13% in 2025 until the end of Thursday.
Fix: This article was first published to reflect Intel reports and updated to feature recent stock value, including reports of losses and additional information.
