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In this article * INTC Follow your favorite stocksCREATE FREE ACCOUNT Intel CEO Pat Gelsinger stands in front of a cathedral in the German city of Magdeburg on Nov. 12, 2022. During his visit, Gelsinger also visited the planned site of the Intel Gigafactory in the Eulenberg industrial park. /dpa-Zentralbild/dpa (Photo by Peter Gercke/picture alliance via Getty Images) Peter Gercke | Picture Alliance | Getty Images Intel reported second-quarter earnings on Thursday, showing a return to profitability after two straight quarters of losses and issuing a stronger-than-expected forecast. The stock rose 7% in extended trading. related investing news Meta's stellar quarter shows Zuckerberg can both monetize and cut costs CNBC Investing Club Meta's stellar quarter shows Zuckerberg can both monetize and cut costs Jeff Marks a day ago Alphabet earnings beats boosted by YouTube, cloud growth. How the pros are playing the stock CNBC Pro Alphabet earnings beats boosted by YouTube, cloud growth. How the pros are playing the stock Christina Falso a day ago Nvidia wins again -- plus two more takeaways from this week's mega-cap earnings CNBC Investing Club Nvidia wins again -- plus two more takeaways from this week's mega-cap earnings Zev Fima a day ago Here's how Intel did versus Refinitiv consensus expectations for the quarter ending July 1: * Earnings per share: $0.13, adjusted, versus a loss of 3 cents expected by Refinitiv. * Revenue: $12.9 billion, versus $12.13 billion expected by Refinitiv. For the third quarter, Intel expects earnings of 20 cents per share, adjusted, on revenue of $13.4 billion at the midpoint, versus analyst expectations of 16 cents per share on $13.23 billion in sales. Intel posted net income of $1.5 billion, or 35 cents per share, versus a net loss of $454 million, or a loss of 11 cents per share, in the same quarter last year. Revenue fell to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining sales for the company. Intel CEO Pat Gelsinger said on a call with analysts the company still sees "persistent weakness" in all segments of its business through the end of the year, and that server chip sales won't recover until the fourth quarter. He also said that cloud companies were focusing more on securing graphics processors for AI instead of Intel's central processors. David Zinsner, Intel's finance chief, said in a statement that part of the reason the report was stronger than expected was because of the progress the company has made towards slashing $3 billion in costs this year. Earlier this year, Intel slashed its dividend and announced plans to save $10 billion per year by 2025, including through layoffs. "We have now exited nine lines of business since [Gelsinger] rejoined the company, with a combined annual savings of more than $1.7 billion," said Zinsner. Here's how Intel's business units performed: * Revenue in Intel's Client Computing group, which includes the company's laptop and desktop processor shipments, fell 12% to $6.8 billion. The overall PC market has been slumping for over a year. * Intel's server chip division, which is reported as Data Center and AI, saw sales decline 15% to $4 billion. * Intel's Network and Edge division, which sells networking products for telecommunications, recorded a 38% decline in revenue to $1.4 billion. * Mobileye, a publicly-traded Intel subsidiary focusing on self-driving cars, saw sales slip 1% on an annual basis to $454 million. * Intel Foundry Services, the foundry business that makes chips for other companies, reported $232 million in revenue. Intel jumps 6% after-hours as earnings return to profitability after two quarters of losses watch now VIDEO4:0004:00 Intel jumps 6% after-hours as earnings return to profitability after two quarters of losses Closing Bell: Overtime Intel's gross margin was nearly 40% on an adjusted basis, topping the company's previous forecast of 37.5%. Investors want to see gross margins expand even as the company invests heavily in manufacturing capability. In the first quarter, Intel posted its largest loss ever as the PC and server markets slumped and demand declined for the company's central processors. Intel's results on Thursday beat the forecast that management gave for the second quarter at the time. Intel management has said the turnaround will take time and that the company is aiming to match TSMC's chip manufacturing prowess by 2026, which would enable it to bid to make the most advanced mobile processors for other companies, a strategy the company calls "five nodes in four years." 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