Intel Earnings On Deck With Stock (INTC) Building Momentum – What To Expect

Intel's stock price (NASDAQ: INTC) has been rallying into earnings, with gains of 20% over the past 3 months moving expectations higher ahead of its Q2 print, due after the closing bell.

The upcoming earnings report holds significant weight, marking the first full quarter under the leadership of CEO Lip-Bu Tan, who took the helm in March 2025. The market is keenly awaiting insights into the impact of Tan's strategic initiatives on Intel's overall performance and future direction.

Intel is trading comfortably above both it's 50-day SMA, and 200-day SMA, indicating a stock in an upward trend.

Analysts anticipate an earnings per share (EPS) of $0.01 for the quarter, with revenue expected to come in at $11.88B. This would reflect a 7% sales decline, reflecting some of the concerns that had been growing amid ongoing restructuring efforts.

Lip-Bu Tan has emphasized the need for significant cultural and operational changes within Intel to regain market share and drive sustainable growth. While acknowledging the progress made in the first quarter of 2025, Tan has cautioned against expecting immediate results, stressing the long-term nature of the turnaround process.

In the first quarter of 2025, Intel reported revenues of $12.67 billion, exceeding analyst expectations.

To address financial pressures, Intel has announced aggressive cost-cutting measures, aiming to reduce operational expenses to $17 billion in 2025, down from a prior target of $17.5 billion. Additionally, capital expenditures are slated to decrease to $18 billion, a reduction from the initial $20 billion.

Intel is also refocusing its product strategy, particularly concerning its approach to AI. The company has shifted its manufacturing focus from the 18A process to the 14A process for external foundry customers, which might result in write-offs of certain 18A-related capital expenditures.

As part of its cost-reduction strategy, Intel has confirmed plans to lay off over 5,000 employees across its U.S. offices, mainly in California and Oregon. These workforce reductions are projected to save $500 million in 2025, with a target of $1 billion in 2026.

For now, the rebound appears to be building some momentum, although there will be plenty left to do in order to return the company to previous heights. Whilst the recent rally has been strong, the stock remains down 25% from where it sat this time last year. Messaging on the outlook from here is likely to prove pivotal in determining where Intel goes next.