Intel Posts Revenue Beat, Cuts Foundry Spending as CEO Declares ‘No More Blank Checks’

Intel reported stronger-than-expected second-quarter earnings on Thursday, beating Wall Street revenue estimates while sharply reducing investments in its ambitious foundry business.

The move marks a significant pivot for the chipmaker as CEO Pat Gelsinger seeks tighter capital control after quarters of heavy spending and mixed results.

In a post-earnings interview with CNBC, Gelsinger was blunt: “No more blank checks.” He confirmed the company will slow investments in Intel Foundry Services (IFS), a centerpiece of its comeback strategy, as it focuses on returns and financial discipline over raw expansion.

Q2 Financial Highlights

Intel reported $12.9 billion in revenue for the second quarter of 2025, unchanged from the same quarter last year. But earnings took a substantial hit. The company posted a GAAP loss of 67 cents per share, while non-GAAP earnings came in at a 10 cent loss per share.

The results were weighed down by $1.9 billion in restructuring charges, which alone shaved 45 cents off reported earnings per share. An additional $800 million in impairment losses and $200 million in one-time costs contributed to further downside, affecting both GAAP and non-GAAP metrics.

Looking ahead, Intel expects third-quarter revenue to fall between $12.6 billion and $13.6 billion. Guidance for Q3 earnings includes a GAAP loss of 24 cents per share and breakeven on a non-GAAP basis.

Foundry Pullback Signals Strategy Shift

In a memo to employees, new CEO Lip‑Bu Tan confirmed major cutbacks across Intel’s global chip manufacturing projects.

“Over the past several years, the company invested too much, too soon, without adequate demand,”

Tan wrote.

As part of this realignment, Intel cancelled fab projects in Germany and Poland and announced the consolidation of testing and assembly operations in Vietnam and Malaysia. Construction of the Ohio chip factory, once a centerpiece of Intel’s comeback plan, will now slow and proceed based on market demand and confirmed customer commitments.

The foundry division posted a staggering $3.17 billion operating loss on $4.4 billion in revenue. Tan made clear that unchecked investment is over, stating,

“There are no more blank checks. Every investment must make economic sense.”

Markets React Cautiously

Intel’s shares initially moved lower in after-hours trading, dropping around 5% despite a top-line beat. Revenue for Q2 came in at $12.86 billion versus Wall Street’s estimate of $11.92 billion, but the company still posted a net loss of $2.9 billion, or 67 cents per share. A significant portion of that loss was tied to an $800 million impairment charge related to unused tools.

Even though Intel guided for Q3 revenue of $13.1 billion at the midpoint, above consensus estimates, its expectation to merely break even on earnings raised questions among investors. Many remain wary of Intel’s ability to balance cost-cutting with long-term growth, especially in the highly competitive semiconductor landscape.

Tan’s decision to slow construction projects and cut foundry expansion was seen by some analysts as prudent, while others worry it may delay progress against rivals like TSMC and AMD. The stock, up 13% year-to-date as of Thursday’s close, remains well below its 2021 highs after a steep 60% decline in 2024.

Outlook and AI Focus

Even though Intel faced many challenges, they are still aiming to sharpen its product execution, especially in artificial intelligence and data center markets.

CEO Lip‑Bu Tan said the company is actively seeking a permanent head for its data center division, which posted a 4% year-over-year increase in revenue to $3.9 billion.

He also committed to personally reviewing and approving all chip designs before they reach the tape-out stage, underscoring a hands-on leadership approach.

The client computing group, which includes PC chips, reported $7.9 billion in revenue, down 3% annually. But Tan reiterated his ambition to win back share in the server and AI space, where AMD has been steadily capturing ground.

With plans to end the year with 75,000 employees and cut $17 billion in operating expenses through 2025, the company is entering a leaner, more targeted phase under Tan’s leadership

A Tighter, More Focused Intel

Intel’s Q2 report sends a clear message to investors: the company is moving from aggressive investment mode to a more measured and results-driven strategy. After three years of rapid infrastructure buildup, the focus is now shifting to execution, profitability, and core innovation.

While questions still remain about whether Intel can truly catch up to rivals in AI and manufacturing, the company’s newfound fiscal restraint is winning cautious approval on Wall Street.

The foundry dream is still alive, but now it’s on a tighter leash.