Intel plunges as Q2 misses expectations, lowers full-year outlook as economy, execution worsen
JHVEPhoto/iStock Editorial via Getty Images

Intel (NASDAQ:INTC) shares fell nearly 9% after the chip giant posted second-quarter results that missed estimates and lowered its full-year outlook, citing a weak economy and execution problems.
For the period ending July 2, Intel (INTC) said it earned an adjusted $0.29 per share on $15.3B in revenue, down 17% year-over-year. Data Center revenue fell 16% year-over-year, while the company's largest segment, Client Computing, accounted for $7.7B in sales, down 25% year-over-year.
Network and Edge Group, Accelerated Computing Systems and Mobileye all saw year-over-year gains, while the company's nascent foundry business, fell 54% year-over-year to $154M. 
Intel (INTC) CEO Pat Gelsinger said the results were "below the standards we have set for the company and our shareholders."
Looking ahead to the third quarter, Intel (INTC) said it sees revenues between $15B and $16B, well below the $18.67B analysts were expecting. Non-GAAP gross margins are expected to be 46.5%, with earnings per share of $0.35.
Santa Clara, California-based Intel (INTC) also lowered its full-year outlook for sales to be between $65B and $68B, compared to a previous outlook of $76B. Analysts were expecting $74.76B for full-year revenue.
Full-year earnings are expected to be $2.30 per share, far below the $3.39 per share analysts were expecting.
Gelsinger blamed the shortfall on the "rapid decline" in economic activity, but also on the company's own execution issues.
âWe are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities," he added. "We are embracing this challenging environment to accelerate our transformation.â
Intel (INTC) is set to host a conference call at 5 p.m. EST to discuss the results.
Earlier this week, Intel (INTC) and MediaTek announced a strategic partnership for manufacturing chips using Intel Foundry Services' advanced process technologies.