Intel (NASDAQ: INTC) delivered an optimistic third-quarter revenue forecast after reporting better-than-expected Q2 sales, but investor sentiment turned negative as the company revealed major cost-cutting measures and financial write-downs. The stock tumbled nearly 9% during intraday trading Friday as the market reacted to the mixed earnings report.
In Q2, Intel posted an adjusted loss of $0.10 per share on $12.86 billion in revenue, surpassing Wall Street’s $11.95 billion sales estimate but falling short of the anticipated $0.01 earnings per share. The earnings miss was driven by $800 million in impairment charges and an additional $200 million in one-time expenses, which collectively reduced EPS by $0.20. The company attributed these costs to strategic restructuring efforts aimed at improving long-term profitability.
As part of its cost-reduction strategy, Intel announced it would pause construction on semiconductor plants in Germany and Poland while slowing progress on its Ohio facility to align with market demand. The chipmaker also revealed plans to reduce its workforce by 15%, aiming to lower employee headcount to 75,000 by the end of 2025. These moves are designed to streamline operations and enhance efficiency amid shifting industry dynamics.
Looking ahead, Intel expects Q3 revenue between $12.6 billion and $13.6 billion with adjusted EPS at breakeven. This outlook slightly exceeds analyst projections of $12.66 billion in sales and $0.04 in earnings per share. While the company remains confident in its growth trajectory, investors are closely monitoring how its restructuring efforts will impact future performance.
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