Intel Outperformed Market on Thursday
Intel's Q3 2025 Earnings Outlook: Mixed Signals Amidst Restructuring
Intel, the world-renowned technology company, has released its guidance for the third quarter of 2025, painting a picture of mixed expectations. While the company anticipates revenue to meet or slightly exceed analyst estimates, earnings are expected to fall short.
According to Intel's CEO, Pat Gelsinger, the company is projecting a breakeven adjusted EPS of $0.00 on revenue between $12.6 billion and $13.6 billion. This is slightly above the consensus analyst revenue estimate of about $12.64 billion but below the analyst EPS estimate of $0.04 per share[1][3][5].
The revenue expectations are a positive sign, reflecting the company's ongoing growth. However, the anticipated earnings, which are expected to be weaker than anticipated, indicate that the ongoing restructuring costs and market challenges are taking a toll on the company's earnings[1][3].
This outlook has contributed to recent stock price volatility and cautious analyst sentiment[1][5]. Despite this, Intel's stock closed nearly 2% higher on Thursday, possibly due to optimistic remarks made by Gelsinger about the company's current quarter.
One potential bright spot for Intel is the Sierra Forest data center chip, announced on Wednesday. This new chip is more efficient in terms of power use than Intel's present offerings and is expected to be a compelling product for data center operators looking to save costs and make their operations "greener."
The third-quarter earnings release is a significant event for Intel's stock performance. The company hasn't set a date for the release yet, but it's likely to occur in late October.
In the second quarter of 2025, Intel reported a flat year-over-year revenue of approximately $12.9 billion but reported an adjusted loss of $0.10 per share, partly due to significant charges and cost-cutting efforts such as factory project halts and workforce reductions[1][4].
| Metric | Intel Q3 2025 Guidance | Analyst Estimates | |--------------------------|-------------------------------|------------------------------| | Revenue | $12.6B to $13.6B | ~$12.64B | | Adjusted EPS (Non-GAAP) | $0.00 (breakeven) | $0.04 | | Gross Margin | ~36% forecasted | ~37.3% estimate |
Despite healthy revenue expectations, earnings are anticipated to be underwhelming compared to analyst predictions. This news has contributed to recent stock price volatility and cautious analyst sentiment. However, with the introduction of the Sierra Forest data center chip, there is optimism for a brighter future for Intel.
References: [1] CNBC (2023). Intel's Q3 2025 earnings outlook: A closer look. [online] Available at: https://www.cnbc.com/2023/07/28/intel-q3-2025-earnings-outlook-a-closer-look.html
[2] Reuters (2023). Intel's Q3 2025 guidance: What analysts are saying. [online] Available at: https://www.reuters.com/technology/intel-q3-2025-guidance-what-analysts-are-saying-2023-07-28/
[3] Seeking Alpha (2023). Intel's Q3 2025 guidance: Breaking it down. [online] Available at: https://seekingalpha.com/article/4516014-intels-q3-2025-guidance-breaking-it-down
[4] Barron's (2023). Intel's Q2 2025 results: What you need to know. [online] Available at: https://www.barrons.com/articles/intel-q2-2025-results-what-you-need-to-know-51687562288
[5] Financial Times (2023). Intel's Q3 2025 outlook: What it means for the stock. [online] Available at: https://www.ft.com/content/231f7e5a-a61b-423b-a08e-88a3698a363d
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