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July 25, 2025 • 4 min read
Intel, a titan of the semiconductor industry, is navigating a monumental transformation. To gauge its progress, we're diving into its latest quarterly financial report, the Form 10-Q, filed with the SEC for the second quarter of 2025. This document offers a detailed look at the company's financial health and strategic execution. You can find the full filing here.
At first glance, Intel's total net revenue for the quarter ending June 28, 2025, was approximately $12.9 billion, nearly unchanged from the same period last year. However, beneath this stable surface, profitability has eroded. The company's gross profit—what's left after accounting for the cost of sales—fell from $4.5 billion to $3.5 billion year-over-year. This squeezed the gross margin from 35.4% down to 27.5%, a clear sign that higher production costs are weighing on the business.
Ultimately, Intel reported a net loss attributable to shareholders of $2.9 billion, a substantial increase from the $1.6 billion loss in Q2 2024.
To better visualize how Intel's revenue is allocated across various costs and expenses, here is a breakdown of the company's income statement for the quarter.
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Intel's results reveal a company operating on two distinct tracks: its established product business and its ambitious new foundry service.
Intel Products: This is the company's traditional engine, comprised of the Client Computing Group (CCG), which makes chips for PCs, and the Data Center and AI (DCAI) group. Combined, this division generated $11.8 billion in revenue and $2.7 billion in operating income. While still highly profitable, this represents a slight decline from the previous year, signaling ongoing competitive pressures in its core markets.
Intel Foundry: This segment represents Intel's strategic future, where it aims to manufacture chips for other companies, competing with giants like TSMC. In Q2, the foundry posted revenue of $4.4 billion (mostly from internal sales to its own product divisions). However, it also reported an operating loss of $3.2 billion, widening from a $2.8 billion loss last year. This highlights the immense, capital-intensive investment required to build a leading-edge foundry business.
All Other: This group, which includes the automotive tech company Mobileye and the programmable chip maker Altera, was a bright spot. It saw revenue grow to $1.1 billion and swung to an operating income of $69 million from a loss of $46 million a year ago.
A major factor deepening the net loss was a $1.9 billion charge for "Restructuring and other charges," nearly double the amount from the prior year. According to the financial statements, this includes:
These actions are designed to streamline the company for long-term efficiency but create significant short-term pain. Offsetting some of this, the company recognized a $502 million gain on its equity investments. This was driven primarily by upward valuation adjustments on its non-marketable investments, with a single holding accounting for a $396 million gain.
Intel's Q2 2025 filing paints a clear picture of a company navigating a difficult, high-stakes transition. It is simultaneously managing its profitable but challenged legacy businesses while pouring billions into its foundry ambitions. The path forward is not without risk; the company explicitly notes in its filing that it may have to pause the development of its next-generation "Intel 14A" technology if it fails to secure a major external customer. As Intel fights to regain its technological edge and build a new foundry powerhouse, its financial reports remain a crucial scorecard for one of the most demanding turnarounds in the tech industry.
Last updated: July 25, 2025