AMD Q3 Revenue Jumps 44.7% to Record $13.38 Billion as Data Center Sales Rise 96.9%; Guides Q4 to $17 Billion, Plus or Minus 3%

Advanced Micro Devices posted record third-quarter revenue of $13.38 billion, up 44.7% from a year earlier, as Data Center segment sales rose 96.9%, and the chipmaker forecast fourth-quarter revenue of an estimated $17 billion, plus or minus 3%, the company said.

Adjusted earnings rose 74.2% to $2.09 per share from $1.20, according to the earnings release AMD filed with an 8-K on Tuesday. On a GAAP basis, net income climbed 95.3% to $2.43 billion, or $1.46 per diluted share, up from $0.75.

"We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year," Chair and CEO Lisa Su said in the release. She said AMD expects growth "to accelerate further in the fourth quarter as we scale Helios and 'Venice' production."

Outlook points to faster growth

The fourth-quarter revenue range works out to $16.49 billion to $17.51 billion. At the $17 billion midpoint, that would be a 27.1% sequential increase and year-over-year growth the company estimates at 66%. AMD expects non-GAAP gross margin of an estimated 55%, compared with 56% in the third quarter.

Data Center does the heavy lifting

Data Center revenue hit a record $8.55 billion, up 96.9%, driven by demand for EPYC processors and the launch of Instinct MI450 Series GPUs. The segment's operating income jumped 168.3% to $2.88 billion.

Client and Gaming revenue fell 8.1% to $3.72 billion. Within it, client revenue rose to $2.9 billion on Ryzen mobile processor sales, while gaming revenue dropped to $773 million, a 40% decline the company attributed to lower semi-custom and graphics sales. Embedded revenue grew 29.4% to $1.11 billion, led by aerospace and defense, automotive, communications and industrial markets.

AMD said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on its first Helios rack-scale systems. It also announced agreements to acquire World Labs and Taalas.

Margins, warrants and cash

GAAP gross margin was 54%, up from 52%, and GAAP operating income rose 123.0% to $2.83 billion. Non-GAAP operating income increased 75.3% to a record $3.92 billion.

GAAP results absorbed a $1.10 billion charge from the change in fair value of warrants AMD issued to certain customers, which the company said is driven by its stock price and other valuation assumptions. That charge is excluded from adjusted earnings.

Free cash flow fell 63.8% to $554 million as operating cash flow slowed to $1.20 billion and capital spending rose to $648 million. Cash, cash equivalents and short-term investments reached a record $15.78 billion, while total debt rose to $7.08 billion after a $4.75 billion senior notes offering in August. AMD did not repurchase common stock in the quarter, according to its cash flow statement.

By the numbers

• Revenue: $13.38 billion, up 44.7%
• Adjusted EPS: $2.09, up 74.2%
• GAAP EPS: $1.46, up from $0.75
• Data Center revenue: $8.55 billion, up 96.9%
• Q4 revenue outlook: an estimated $17 billion, plus or minus 3%
• Free cash flow: $554 million, down 63.8%

Sources

1. Advanced Micro Devices Form 8-K with third-quarter 2026 earnings release and presentation, filed Nov. 3, 2026 (accession 0000002488-26-000188)

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