Intel Posts Sharp Q2 2022 Revenue Drop Amid Economic Headwinds
Intel reports a 22% year-over-year decline in second-quarter revenue to $15.3 billion, citing sudden economic changes and internal execution issues. Despite the downturn, the chipmaker maintains its full-year adjusted free cash flow guidance.
Intel reports second-quarter 2022 GAAP revenue of $15.3 billion, marking a 22% year-over-year decrease, while non-GAAP revenue falls 17% to $15.3 billion. The company records a GAAP loss per share of $0.11 and a non-GAAP EPS of $0.29. CEO Pat Gelsinger attributes the disappointing results to a rapid decline in economic activity alongside internal execution issues.
The economic downturn heavily impacts Intel’s Client Computing and Datacenter and AI Groups, causing significant revenue drops in these key sectors. However, the Network and Edge Group and Mobileye achieve record quarterly revenue, providing bright spots in an otherwise challenging financial report. Gross margins also take a substantial hit, falling to 36.5% on a GAAP basis.
In response to the shifting business landscape, Intel revises its full-year revenue guidance downward to a range of $65 billion to $68 billion. Despite this reduction, the company reiterates its full-year adjusted free cash flow guidance and expresses confidence in returning gross margins to their target range by the fourth quarter. Leadership emphasizes a continued commitment to Intel's long-term transformation strategy and shareholder dividends.