Intel optimistic after 'stronger than expected' fiscal quarter
NEW ALBANY, Ohio (WCMH) -- Intel's most recent financial report exceeded Wall Street projections, an optimistic update for the chipmaker bringing a $28 billion semiconductor manufacturing facility to Licking County.
On Thursday, Intel announced its third-quarter financial report, the first since the federal government took a stake in the company. CFO David Zinsner said the quarter was "stronger than expected" and that demand -- driven by AI -- is outpacing supply. See previous coverage of the federal acquisition in the video player above.
Generally, Intel leaders did not discuss Ohio One. Instead, the company celebrated completing construction in Arizona on a fifth fab to produce highly advanced chips. Leaders were also excited about increased reliance on AI, which they said is driving interest in Intel's products and services.
Increased demand is encouraging news for Intel, which said the future of the Intel Ohio One plant hinges on gaining new external customers. Intel said its third fiscal quarter generated $13.7 billion, a 3% improvement from this time last year.
Intel also confirmed it laid off more than 13,000 employees over the past three months. The move was part of an active effort to downsize the company and remove bureaucracy. Intel said it had 88,400 employees as of Sept. 27, down from 101,400 in late June. The company plans to end 2025 with just 75,000 employees, so more layoffs may be incoming.
It's been a tumultuous few years for Intel, which delayed its Ohio One plant into 2031 in February. In March, Lip Bu-Tan was appointed as CEO and began trying to remedy prevailing fiscal issues through restructuring efforts and up to 20% layoffs. At Intel's last quarterly financial announcement, Tan said they were further slowing construction in Ohio.
When conservative lawmakers -- including Sen. Bernie Moreno (R-Ohio) and President Donald Trump -- called for Tan's removal, he visited the White House and walked away with an unusual proposition. In August, Trump and Intel completed an agreement authorizing the release of promised government funding in exchange for roughly 10% equity stake in the company.
Speaking on an investors' conference call, Tan voiced his gratitude to Trump for the arrangement. He said the company is "fully committed to advancing the Trump administration's vision" for domestic semiconductor manufacturing.
Under the federal agreement, Intel is set to receive $8.9 billion in federal funding. On Thursday, Intel said it received $5.7 billion so far, on top of $2.2 billion released before Trump took office. Intel said it has been unable to fully connect with federal offices due to the ongoing government shutdown, leaving some company questions unanswered.
"Due to the current U.S. Government shutdown, Intel has been unable to conclude its consultation with the staff of the SEC," Intel's disclosure read. "If the staff of the SEC were to have a different view of the appropriate accounting treatment of these transactions, Intel may revise its third quarter 2025 financial results."
Intel has not yet filed all of the forms it typically would during a fiscal update, so there will likely be more details publicized in the near future.