Intel posts $4.1B quarterly profit as cost cuts boost balance sheet

Intel reported a $4.1 billion profit for the quarter ending in September, a sharp reversal from a year‑ago loss, as the company benefited from cost cuts, asset sales and a wave of new investments while its shares rose about 7 to 8 percent in afterhours trading. The Santa Clara, California, chipmaker said revenue for the period climbed 3 percent to $13.7 billion, and executives told investors the cash inflows and budget reductions have improved its financial flexibility as it pursues a turnaround.

Chief Executive LipBu Tan has instituted large cuts to headcount and project spending since taking the job, moves the company and analysts say helped push the quarter into the black. Intel said recent transactions and investments added roughly $20 billion to its balance sheet in the quarter, including a $2 billion investment from SoftBank, a $5 billion investment pledged by Nvidia, and proceeds from sales of chip assets. In August the U.S. government announced it would take a roughly 10 percent stake in Intel as part of funds available under the CHIPS and Science Act; the company said it has received $5.7 billion of the planned $8.9 billion to date.

Tan framed the quarter as an...