CNBC's Kristina Partsinevelos jonis 'Squawk on the Street' to discuss the latest earnings from Intel.

Intel's stock experienced a notable drop after the company reported revenue that exceeded analyst estimates. Despite the revenue beat, the results were measured against already lowered expectations, and concerns about weaker margins and below-consensus earnings guidance weighed on investor sentiment. The company is taking steps to cut costs, including layoffs and scrapping projects in Europe, while consolidating operations elsewhere.

Analysts remain cautious, pointing to challenges in Intel's foundry strategy and a lack of significant progress in artificial intelligence. Management has indicated a willingness to pause or cancel advanced manufacturing processes if customer demand does not materialize. Most analysts are neutral on the stock, with price targets remaining modest and expectations for a slow turnaround.

Intel shares drop despite topping revenue estimates

Intel, one of the biggest losers on the NDX in the pre-market. Despite the company actually topping revenue estimates, Christina Partsanevelis with a look at today's drops. So what is the story here, Christina? Sarah, you know, all of Intel's revenue segments, they did beat estimates, but that beat came against already low expectations. You talked about that revenue beat, analysts have been lowering their expectations for the past month or so. Margins were a little bit weaker and guidance for EPS came in below consensus, driven by higher costs. Management also acknowledged a likely pull forward in demand ahead of tariffs, something we saw last quarter too, meaning they may have borrowed sales from future quarters. Rosenblatt called this a meh quarter with a slow turnaround underway. This turnaround that's been taking a long time. The tone on the call was clear. Intel is staying disciplined on costs. More layoffs are coming. Projects in Germany and Poland are getting scrapped. A plant in Costa Rica is being consolidated. The list continues, but is that enough? I spoke with CFO Dave Zisner yesterday who told me, this really frees up more CapEx to be reallocated to the United States, despite the fact that they're gonna be slowing down construction at their Ohio plant. But the street still isn't convinced. Cantor Fitzgerald says there's still, quote, plenty of wood to chop and the foundry strategy appears challenged. CEO Litbu Tan said Intel will only spend on foundry if they book customers. Yet in their 10Q yesterday, Intel admits it's willing to pause or scrap its most advanced 14A process, raising real questions about their foundry commitment. Mizuho says Intel still lacks the AI traction and a clear shift to a foundry model. Baird doesn't see meaningful revenue drivers ahead. Both are neutral on the stock. There's a lot of sell side that are just staying neutral on the stock. But Deutsche Bank says Intel is heading in the right strategic direction, but the turnout is gonna take time until there's real progress. They expect the stock to stay range bound for now. A lot of price targets are just between $20 and $23. The market clearly isn't willing to wait and that's why you're seeing shares down about 8%, guys. It's pretty remarkable, Christina. This line I saw from the call the last year of positive adjusted free cash flow they had, 2021, and they argue this is completely unacceptable. A lot of these problems have been brewing for a long time. Yeah, I don't wanna, management is quick to say that it's, you know, the problem of the previous CEO that he spent so much on the foundry business over the last little while, so much on building all of these advanced processes within, you know, four years, five nodes within four years. And so they're quick, not quick. The company has no doubt spent a lot of money, but that's why Lippu Tan is so diligent on cutting costs. He said that he wants to remove layers of management by 50%. The problem is this is gonna take some time. So for investors, are you willing to sit it out for at least two to three years in this name, knowing that it's really gonna stay within that $20 range and the lack of AI strategy? I think that's a big part too. Their most advanced process, 14A, could get killed in the next two years if they don't have any external customers. Right, definitely not a position of strength at the moment.

EU Commission President Ursula von der Leyen has said she will meet US President Donald Trump on Sunday in Scotland to "discuss transatlantic trade relations."

Glasgow

Global Tariffs

Ursula von der Leyen to meet Donald Trump to discuss trade

President Trump signed an executive order Thursday aimed at dramatically changing how the U.S. approaches homelessness.

Washington

Trump signs executive order changing U.S. approach to homelessness

Former NFL Wide Receiver Donté Stallworth tells CNN’s Jake Tapper that the reselling of Super Bowl tickets by players and employees has long been an “open secret.” Stallworth believes that imposing fines and threatening player suspensions will significantly curb the practice of selling tickets for profit.

New York

NFL issues fines for selling Super Bowl tickets above face value

Typhoon Co-May has left a trail of destruction across the Philippines, making landfall in the country's northwestern region. Torrential rains and strong winds have battered towns and cities, damaging homes, roads, and farmland. At least 25 people have been reported dead.

Pangasinan

Philippines hit hard by Typhoon Co-May, dozens killed

Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump appeared on Friday to abandon Gaza ceasefire negotiations with Palestinian militant group Hamas, a day after withdrawing their delegations from talks.

Jerusalem

Middle East Conflict

Netanyahu, Trump appear to abandon Gaza ceasefire negotiations

U.S. President Donald Trump is spending five days in Scotland visiting his luxury golf resorts. While the White House touts the economic impact, some locals say the developments have scarred the land and stirred controversy.

Edinburgh

Trump visits Scotland to tour golf courses amid protests

The U.S. Department of Justice is set to meet with Ghislaine Maxwell, Jeffrey Epstein's convicted accomplice, amid mounting political pressure on President Donald Trump over his administration's handling of the Epstein case.

Ghislaine Maxwell to meet with U.S. Justice Dept. amid Epstein probe

Thailand and Cambodia exchanged heavy artillery fire for a second day on Friday (July 25) as their worst fighting in over a decade intensified and spread to new areas, despite international calls for a ceasefire.

Bangkok

Thailand, Cambodia exchange heavy artillery

France intends to recognise a Palestinian state in September at the UN General Assembly, President Emmanuel Macron said in hopes of bringing peace to the region, but the plan drew angry rebukes from Israel and the United States.

Macron says France will recognize Palestine as a state

Ukrainian President Volodymyr Zelensky has approved a draft bill to restore the independence of anti-corruption agencies, following nationwide protests and EU concerns over recent reforms that threatened their autonomy.

Ukraine Invasion

Zelensky approves anti-corruption bill after protests

Chinese and European Union leaders have met in Beijing for their first in-person summit since 2023, addressing a range of contentious issues amidst growing trade tensions. The talks, led by Chinese President Xi Jinping and EU officials Ursula von der Leyen and Antonio Costa, highlighted the complex nature of China-EU relations.

Beijing

China-EU summit ends in climate deal, talks strain over Ukraine

The United Kingdom and India have signed a trade agreement that will reduce tariffs on goods from textiles to whisky, cars and spices and allow more market access for businesses. British PM Keir Starmer hailed the agreement as a “landmark moment” for both countries.

London

UK, India sign free trade agreement during Modi visit

President Trump and Federal Reserve Chair Jerome Powell had a disagreement almost immediately as the two men set foot in the Fed's headquarters in Washington to survey an extensive renovation project on two of the reserve's buildings. Nancy Cordes has more.

Trump, Powell clash during tour of Federal Reserve renovations

Hulk Hogan, the legendary professional wrestler whose real name was Terry Bollea, died on Thursday at the age of 71, according to World Wrestling Entertainment.

Clearwater

Wrestling legend Hulk Hogan dead at the age of 71, WWE says

At least 12 were killed as a Thai-Cambodian border dispute escalated into deadly clashes on Thursday (July 24).

Surin

Thailand bombs Cambodian targets as border clash escalates

According to preliminary data, 43 passengers, including five children, and six crew members were on board.

Tynda

Passenger plane crashes in Russia, killing all 49 people on board

Pro wrestling legend Hulk Hogan has died, World Wrestling Entertainment said in a statement on social media. He was 71. CBS News' Shanelle Kaul has more.

Hulk Hogan dies at 71, WWE says

The Wall Street Journal reports that former Attorney General Pam Bondi told President Trump his name appeared in the Epstein files. The White House denies wrongdoing.

Report: Trump was briefed on mentions in Epstein files

Columbia University will pay $200 million to resolve federal claims it failed to stop harassment of Jewish students during campus protests. The Trump administration had suspended the school's access to $400 million in funding.

Columbia settles for $200 million over antisemitism claims

Israel issued a statement indicating that Prime Minister Benjamin Netanyahu has asked the Gaza negotiating team to return to Israel for ceasefire talks. CBS News' Ramy Inocencio reports.

Israel brings back Gaza negotiating team for ceasefire 'consultations'

Also in the settlement is an agreement to ask prospective international students “questions designed to elicit their reasons for wishing to study in the United States,” and establishes processes to make sure all students are committed to “civil discourse.”

Columbia University to pay more than $220M in deal with Trump

There are several developments in the cases involving Kilmar Abrego Garcia, the migrant in ICE custody whom the Trump administration wrongly deported. CBS News' Katrina Kaufman reports.

Nashville

Kilmar Abrego Garcia to remain detained following new court orders

Dr. Salvador Plasencia admitted to distributing ketamine to actor Matthew Perry before his 2023 overdose. He is the fourth person to plead guilty in the case and faces up to 40 years in prison.

Los Angeles

Doctor pleads guilty in Matthew Perry death case

While both sides acknowledged progress on humanitarian issues, talks on a full ceasefire remain stalled. Turkish Foreign Minister Hakan Fidan called for "result-oriented negotiations" to end the devastating war.

Istanbul

Russia and Ukraine conclude third round of peace talks in Istanbul

A passenger plane has crashed in southeastern Russia with up to 49 people onboard. Emergency services say the An-24 aircraft took off from the city of Khabarovsk and was heading to the town of Tynda. Wreckage was found on a mountainside around 15 kilometres from the flight's intended destination.

Russian passenger plane with 49 on board crashes

Ukraine's President Volodymyr Zelenskiy vowed to retain the independence of anti-corruption agencies, bowing to pressure from the first wartime street protests and rare rebukes from European allies.

Kyiv

Zelenskiy to protect anti-corruption agencies, bows to protests

U.S. President Donald Trump's name is among the many appearing in the Epstein files, according to the Wall Street Journal, and he was told as much earlier this year by the U.S. Justice Department.

Trump calls reports he knew his name is in Epstein files ‘fake news’

Dr. Salvador Plasencia, the doctor accused of supplying Matthew Perry with ketamine in the month leading up to his death, has pleaded guilty to four counts  of distribution of ketamine. Plasencia is the fourth of the five people charged in connection with Perry's death to plead guilty.

California

Doctor accused of supplying ketamine to Matthew Perry pleads guilty

Russia and Ukraine have exchanged prisoners following the latest round of talks in Istanbul. The swap, involving dozens of soldiers — some severely wounded and held since the war’s start in 2022 — took place on Wednesday night. While the prisoner exchange marks a rare point of agreement, both delegations remain divided on ceasefire terms.

Ukraine-Russia talks: Delegations remain divided on ceasefire terms

After reviewing the Epstein files, Attorney General Pam Bondi told President Trump his name appears alongside many others, according to a new report in the Wall Street Journal. CNN’s Paula Reid details what we know.

Breakdown