Intel
Q2 2022 Earnings Call
Jul 28, 2022, 5:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, and thank you for standing by. Welcome to the second quarter 2022 Intel Corporation earnings conference call. [Operator instructions] Please be advised that today's conference is being recorded. I will now hand the conference over to your speakers today, John Pitzer, corporate vice president of investor relations at Intel.
Please go ahead.
John Pitzer -- Corporate Vice President of Investor Relations
You should have received a copy of our earnings release and the earnings presentation, both of which are available on our investor website, intc.com. The earnings presentation is also available in our webcast window for those joining us online. I'm joined today by our CEO, Pat Gelsinger; and our CFO, David Zinsner. In a moment, we'll hear brief comments from both, followed by Q&A.
Before we begin, please note that today's discussion contains forward-looking statements based on the environment as we currently see it. As such, it involves risks and uncertainties. Our press release provides more information on the specific risk factors that could cause actual results to differ materially. We've also provided both GAAP and non-GAAP financial measures this quarter, and we'll be speaking to the non-GAAP financial measures when describing our consolidated results.
The earnings presentations and the release are available on intc.com, include full GAAP and non-GAAP reconciliations. With that, let me hand it over to Pat.
Pat Gelsinger -- Chief Executive Officer
Thank you, John, and good afternoon, everyone. While we continue to make solid progress on our strategy, Q2 results were disappointing, below the standards we have set for the company and below the commitments we have made to you, our shareholders. The sudden and rapid decline in economic activity was the largest driver of the shortfall, but Q2 also reflected our own execution issues in areas like product design, DCAI and the ramp of AXG offerings. We have an obligation to remain vigilant and to respond to changing business conditions while not losing sight of our long-term goals and opportunities.
We will look to do both by adjusting and refocusing our spending levels in the near term at the same time as we accelerate the deployment of our smart capital strategy and improve product execution. Collectively, these actions will begin to show dividends in the second half of the year, allowing us to return gross margins to our target range by Q4 and maintain our initial free cash flow outlook for 2022. While still early in our journey, we remain laser-focused on executing to our strategy to deliver leadership products, anchored on open and secure platforms, powered by at-scale manufacturing and supercharged by our people. The current economic backdrop only strengthens our result, and we are embracing this environment to accelerate our transformation.