Second-Quarter Revenue Guidance Misses Analyst Estimates
Intel has projected its revenue for the second quarter of 2025 to be between $11.2 billion and $12.4 billion. This forecast is significantly below Wall Street’s consensus estimate of $12.82 billion for the upcoming quarter. The revision comes despite Intel’s first-quarter earnings surpassing expectations, with reported revenue of $12.7 billion—ahead of analyst predictions—and earnings per share of $0.13, $0.13 higher than the estimates
[2][3].
New CEO Faces Challenges Amid Global Trade Tensions
This lower guidance is casting a shadow over the first earnings report presided over by Intel’s new CEO, Lip-Bu Tan. The company’s underwhelming outlook arrives at a crucial moment as the semiconductor industry contends with heightened tariff pressures and a challenging macroeconomic environment, intensified by the ongoing trade tensions between the United States and China
[2].
Cost-Cutting Initiatives and Strategic Financial Adjustments
Intel announced several measures to control costs and streamline its operations:
- The company has lowered its adjusted operating expense target to approximately $17 billion for 2025, down from a previously stated $17.5 billion.
- For 2026, the new expense target is set at $16 billion.
- Gross capital expenditures for 2025 have been trimmed to $18 billion, down from earlier guidance of $20 billion.
CFO David Zinsner stated, “The current macro environment is creating elevated uncertainty across the industry, which is reflected in our outlook.” These adjustments aim to address shareholder concerns following years of strategic missteps and intensifying competition in the rapidly growing AI and data center sectors
[2].
Market Reactions and Analyst Sentiment
Intel’s disappointing revenue outlook follows a volatile period for its stock. Although Intel’s shares have recently gained ground, they remain down by nearly 39% over the past twelve months. The outlook has prompted additional scrutiny from investors, with recent trends showing more negative than positive earnings-per-share revisions
[3].
Industry Context and Strategic Initiatives
Despite the difficult environment, Intel continues to focus on both core and emerging business segments, such as mobile chip development and AI-driven innovation. The company remains committed to its foundry business expansion, ramping up new manufacturing technologies, and monetizing non-core assets to support long-term growth
[1].
Intel’s outlook signals persistent headwinds and industry uncertainty, as it navigates global supply chain challenges and strives to regain its competitive edge.
