Intel Stock Declines Over 7% In Friday Pre-Market: What's Going On?

Benzinga
2025.07.25 10:34
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Intel Corp. shares fell 7.34% in pre-market trading after Q2 earnings missed EPS expectations, reporting a loss of 10 cents per share against an expected gain. Despite revenue of $12.86 billion exceeding forecasts, the company plans to cut 15% of its workforce and reduce capital expenditures significantly. CEO Lip-Bu Tan aims to enhance profitability and competitive positioning in the semiconductor market, with projected Q3 revenue between $12.6 billion and $13.6 billion and an expected loss of 24 cents per share.

Shares of Intel Corp. INTC declined 7.34% in Friday pre-market, after its Q2 earnings per share (EPS) fell short of expectations.

What Happened: On Thursday, Intel reported a revenue of $12.86 billion for the second quarter, surpassing the analyst consensus of $11.91 billion. However, the company’s adjusted EPS for the quarter was a loss of 10 cents per share, missing the expected earnings of one cent per share.

Despite this, the company’s total revenue remained flat year-over-year. Intel’s cash from operations for the quarter was $2.1 billion, leaving the company with around $9.64 billion in cash and cash equivalents at the end of the period.

The chip giant also revealed its plans to slash 15% of its employee base and cancel expenditure worth billions of dollars on new chip facility constructions in Europe

Intel’s CEO Lip-Bu Tan commented, “We are also taking the actions needed to build a more financially disciplined foundry. It's going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value.”

Intel’s third-quarter revenue is projected to fall between $12.6 billion and $13.6 billion, with an expected loss of 24 cents per share.

Why It Matters: The chipmaker’s Q2 results come in the wake of a major overhaul aimed at restoring its competitive edge in the AI-dominated semiconductor landscape.

The company’s CEO, Lip-Bu Tan, who stepped into the top role at Intel in March, faces the monumental challenge of reviving the company and is under pressure to quickly present investors with a clear strategy for addressing its complex array of issues.

Tan has also pledged to prioritize demand-driven investments over what he describes as “unwise and excessive” spending of the past, signaling a dramatic shift in its capital expenditure strategy, with plans for aggressive cuts in 2026.

Despite the EPS miss, Intel’s Q2 revenue beat and the promising outlook for competitive growth could be seen as early signs of the company’s efforts to regain its competitive position in the semiconductor market.

According to Benzinga Edge Stock Rankings, Intel has a growth score of 19.21% and a value rating of 74.37%. Click here to see how it compares to other leading tech companies.

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