Intel Q2 Earnings: Revenue Beat Overshadowed by EPS Miss and Strategic Cuts

Intel Corporation delivered a mixed second-quarter performance, with revenue surpassing analyst expectations while earnings faltered under restructuring costs. The chipmaker reported $12.86 billion in revenue, exceeding the $11.92 billion consensus, but recorded a $0.10 per share loss due to $800 million in impairment charges.

Strategic cuts dominated the earnings narrative. Intel announced plans to reduce its workforce by 15% by year-end and canceled factory projects in Germany and Poland. These measures come as the company attempts to streamline operations amid shifting semiconductor demand patterns.

The market reacted swiftly to the news, with Intel shares dropping 9.52% to $20.48 in Friday trading. While the Products division outperformed with $11.8 billion in revenue, the $2.9 billion net loss highlighted ongoing challenges in the competitive chip landscape.