Intel shows strong revenue growth in third quarter
Intel shares surged strongly on Thursday’s extended trading as the chipmaker’s quarterly outlook and better-than-expected results exceeded expectations.
Intel’s revenue decreased 6% YoY in the fiscal third quarter, which concluded on September 28.
The business reported a net loss of $16.99 billion, or $3.88 per share compared to its net earnings of $310 million, or 7 cents per share, during the same period the previous year,
Intel’s restructuring charges of $2.8 billion for the quarter is part of a cost-cutting strategy. Additionally, there were $15.9 billion in impairment costs, partially related to goodwill impairment in the Mobileye unit and accelerated depreciation for Intel 7 process node production sites.
The board’s audit and finance committee authorized cost and capital reduction initiatives on October 28, including cutting Intel’s workforce by 16,500 employees and reducing its real estate footprint, the company stated in a filing. The job cuts were initially announced in August.
Intel also stated that the reorganization will be completed by the fourth quarter of 2025.“One of the largest reorganizations the company has undergone since its founding in 1968 is currently underway.” Intel’s chief, Pat Gelsinger, stated.
The chip-maker predicted revenue of $13.3 billion to $14.3 billion and adjusted earnings of 12 cents per share for the fiscal fourth quarter. Analysts had projected $13.66 billion in revenue and 8 cents adjusted earnings per share.
Intel also declared the release of Gaudi AI accelerators and Xeon 6 server processors. the board’s audit and finance committee approved cost and capital reduction actions, including reducing Intel’s real estate footprint and laying off 16,500 employees.
The job losses were first made public In August. According to Intel, the reorganization will be completed by the fourth quarter of 2025. The Data Center and AI sector generated $3.35 billion in revenue, around 9% higher than the $3.17 billion StreetAccount forecast.
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