A combination of macroeconomic headwinds and internal problems led to Intel’s revenue dropping 22% to $15.3 billion in the second quarter of 2022, marking the seventh straight quarter of decline for the chipmaker.
Revenue was also 15% below the company’s original guidance for the quarter. “Due to the difficult macroeconomic environment together with our own execution challenges, our results for the quarter were well below expectations and necessitate a significant revision to our full-year financial guidance,” Pat Gelsinger, CEO at Intel, said in a call with analysts.
While the macroeconomic environment has been impacting the overall semiconductor industry, Intel has been impacted far worse than expected. The company lowered its revenue expectation for the fiscal year to $65 billion-68 billion, down from an earlier forecast of $76 billion. Even profitability is expected to decline further, as the company revised profit estimates for the fiscal year to $2.30 per share, from $3.60 per share estimated earlier.