Thank you, John, and let me add my welcome. We had a solid Q2 with revenue above the high end of our guidance. This reflects strong demand across our business and good execution by the team. As expected, headline profitability was impacted by several onetime items and impairments. But I am pleased by the underlining operating performance in the quarter, even as we have more work to do. Dave will go through our detailed financials shortly. Today, I want to provide you with updates on 4 major initiatives where we have started to make progress and will continue to focus in coming quarters: our organization and culture, our foundry strategy, our core x86 franchise and our AI strategy. First, on organization and culture. Over the last 3 months, I have completed a systematic review of every organization and function reporting to the CEO. These reviews included detailed analysis of head count, skill sets, spending, site distribution, executive population and restructuring plans. We have much work to do in building a clean and streamlined organization, which we have started in earnest and has remained an area of focus for me during Q3. Our goal is to reduce inefficiencies and redundancies and increase accountability at every level of the company. As mentioned in our Q1 earnings call, we need to rightsize and scale back the company while ensuring that we are retaining our best internal talent and hiring the best external talent from industry and universities. During Q2, we completed the majority of the actions needed to achieve our year-end target of 75,000 employees. These were hard but necessary decisions, and we reduced management layers by approximately 50% in the process. We are on track to implement our return-to-office mandate starting September. These actions are necessary not just to reduce our operating expenses, but to make the company more agile, collaborative and vibrant to simplify our business and improve our product and process execution.
Next, on our foundry strategy. I continue to believe that our heritage and expertise in semiconductor technology development and manufacturing remains a very valuable and vital asset. I also fully appreciate the strategic importance of the U.S.-domiciled semiconductor manufacturing. Transforming this unique asset into a robust foundry business requires us to take a systematic approach and act from the position of strength. The foundry business is a service business that relies on foundational principle of trust.
We need to demonstrate to our customers that we can deliver wafers on time with high quality, reliability and yield that we can manufacture their products at scale. We need to have process and packaging technology that is not only competitive but, more importantly, is designed to meet the needs of our customers. In addition, we also need to develop a rich and diverse ecosystem of IP and EDA partners who will enable our customers to seamlessly design chips using our process. And finally, perhaps most importantly, we need to build capacity smartly and carefully on a schedule that meets the needs of our customers and supports the economics of our business.
This approach is fundamentally different than the path we have been on for the last 4 years. Unfortunately, the capacity investment we made over the last several years were well ahead of demand and were unwise and excessive. Our factory footprint has become needlessly fragmented. Going forward, we will grow our capacity based solely on the volume commitments and deploy CapEx in lockstep with the tangible milestones and not before. As part of this new financial discipline, we have decided not to continue with our manufacturing projects in Germany and Poland. We also plan to consolidate our assembly and test operation in Costa Rica into larger existing sites in Vietnam and Malaysia. And we will further slow the pace of construction in Ohio to ensure our spending is aligned with market demand. Importantly, based on the progress we have already made in Ohio, we have flexibility to accelerate work as needed to meet customer needs. Turning specifically to process technology development. On Intel 18A, we will continue to make steady progress on our yield and performance targets.
Intel 18A is the foundation of at least next 3 generations of Intel client and server products, and we remain committed to ramping this technology to scale. Intel 18A and Intel 18A-P are critical nodes for Intel Products and will drive meaningful wafer volumes well into the next decade.
Our foundry and product teams remain focused on enabling Panther Lake to launch this year. Once we get our own product ramping in high volume, we will be in better position to attract external customers to this technology. The Intel 18A family is also important as we continue to advance our work for the U.S. government within the Secure Enclave program as well as for other initial committed customers. On Intel 14A, the foundry technology team is continuing to focus on the basic building blocks, technology definitions and transistor architecture, process flow, design enablement, PDKs, foundational IPs and test chips to validate and improve performance and defect density. Designing 14A at its inception as a foundry node from the ground up better positions us to meet specific customer requirements and address a broadened segment of the market.
This work is being driven and informed by direct input from large external customers and from our own internal product teams. A key aspect of prudently pursuing our foundry ambition is also making sure we maintain sensible optionality for our internal product teams. They will continue to work closely with both internal and external foundry partners. They will do their homework and make process and supplier decisions based on what is best for our end customers against criteria of performance, cost, yield and time to market.
Our external foundry strategy has always been rooted in the economic reality of semiconductor manufacturing. Up to and through Intel 18A, we could generate a reasonable return on our investments with only Intel Products. The increase in capital cost at Intel 14A, make it clear that we need both Intel products, and a meaningful external customer to drive acceptable returns on our deployed capital, and I will only invest when I'm confident those returns exist. I'm intimately familiar with the foundry and fabless ecosystem. Having helped create it over the last 2 decades, I'm using that experience to put our Intel Foundry on a more solid footing for the future. I will do so while being prudent with our capital and ensure we can deliver attractive returns on the investment we make.
I do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need, when they need it and earn their trust through consistent execution. Next, on to our core x86 franchise. In client, our top priority is delivering our first Panther Lake SKU by year-end. followed by additional SKUs in the first half of 2026. The successful launch of the Panther Lake will solidify our strong share in the notebook market across consumer and enterprise. We still have gaps to close in the high-end desktop market, but I'm encouraged by our unmatched go-to-market reach, our x86 ecosystem and the progress we are making on Nova Lake due out at the end of 2026. In traditional servers, we continue to have solid position in AI host nodes and storage where our single-threaded performance has been optimized for those workloads. Granite Rapids is ramping as planned, and we continue to see good demand for our more established server products, but sustainable share improvement in this market will take time. Specifically, we need to improve in broader hyperscale workloads where performance per watt is a key differentiator. I have also taken steps to correct past mistakes regarding multi-threading capabilities on our P-cores. I'm also making progress on bringing in new leadership in our data center business and look forward to being able to announce these changes next quarter. Longer term, my directive to our silicon and platform teams is to define products with clean and simple architecture, better cost structure to simplify our SKU stack, all while enabling a path to robust product margin. I'm also instituting a policy where every major chip design need to be personally reviewed and approved by me before tape-out. I have already begun this process. This discipline will improve our execution speed and move up towards a first-time right mindset while also saving development costs. Finally, turning to AI. In the past, we approached AI with a traditional silicon and training-centric mindset without a cohesive silicon systems software stack and strategy. While we do need to build and consolidate upon our silicon franchise based upon our x86 CPU and our Xe GPUs, we recognize the need to move up the abstraction stack into system and software.
This is the area where Intel has traditionally been weak or entirely absent. But we intend to incubate and grow these important skill sets and capabilities under my leadership. This will take time, but it will be vital for Intel to stay relevant in the next wave of computing. In addition, we see the AI market continuing to evolve, and we are concentrating our efforts on areas we believe we can disrupt and differentiate like inference and agentic AI. We need to start by first understanding emerging and real AI workloads, then work backwards to design software, systems and silicon to enable best outcome for those particular workloads. We will strive to become the compute platform of choice, but we will also work towards a full stack AI solution, and I look forward to sharing more on our strategy in the coming months. Underpinning all of these efforts is a strong focus on improving our balance sheet.
We continue to maintain solid liquidity, but despite meaningful capital spending offsets. Our last full fiscal year of positive adjusted free cash flow was 2021. This is completely unacceptable. How we allocate our owners' capital and the return we generate for them are of paramount importance to me. We have several major levers to generate better cash flow, including driving operating leverage and managing our capital outlays.
I discussed earlier the actions we have taken to reduce operating expenses and improve execution. I'm very confident in our ability to hit our operating expenses targets for 2025 and 2026, respectively. We have already lowered our CapEx guidance from the beginning of the year by roughly $5 billion year-to-date, while purchasing commitments make further reduction in 2025 difficult. We will continue to work to reduce capital spending in 2026. Lastly, as it relates to our noncore assets, we successfully monetized a portion of our ownership of Mobileye's earlier this month, and we look forward to closing the Altera transaction with Silver Lake this quarter. I will evaluate other opportunities as we continue to sharpen our focus around our core business and strategy. I believe the actions we have taken during my first few months are steering us in the right direction. That said, I also know that turning the company around will take time and require patience. We have a lot to fix in order to move the company forward, and I'm determined to drive the changes necessary to improve our performance. I am equally [inaudible] that as we execute, we will rebuild this company and have a bright future. I will now turn it over to Dave to go into more detail on the financials.