Advanced Micro Devices reported record third-quarter 2026 revenue of $13.4 billion, up 45% from $9.2 billion in the prior-year period. The semiconductor company’s performance was driven primarily by a 97% increase in Data Center revenue, reflecting strong demand for AMD Instinct graphics processing units (GPUs) and EPYC server processors.
AMD reported GAAP net income of $2.4 billion, up 95% year over year, with diluted earnings per share rising to $1.46 from $0.75. GAAP operating income increased 123% to $2.8 billion, while gross margin improved to 54% from 52%.
On a non-GAAP basis, AMD generated operating income of $3.9 billion, up 75% from the prior-year period. Non-GAAP net income reached $3.5 billion, up 77%, while adjusted diluted earnings per share increased 74% to $2.09.
Non-GAAP gross margin reached 56%, up two percentage points year-over-year, while non-GAAP operating margin expanded to 29% from 24%.
AMD’s Data Center segment generated record revenue of $8.5 billion, up 97% year-over-year. The growth was supported by accelerating demand for EPYC server processors and the launch of AMD Instinct MI450 Series GPUs.
Data Center operating income reached about $2.9 billion, up from $1.1 billion in the third quarter of 2025, underscoring the growing contribution of AI infrastructure and server computing to AMD’s financial performance.
The company’s Client and Gaming segment generated $3.7 billion in revenue, down 8% year over year.
Within that segment, Client revenue increased 7% to $2.9 billion, driven by sales of AMD Ryzen mobile processors. Gaming revenue declined 40% to $773 million as semi-custom and graphics revenue decreased.
AMD’s Embedded segment generated $1.1 billion in revenue, up 29% from the prior-year period. Demand across aerospace and defense, automotive, communications, and industrial markets supported growth.
The company’s quarterly performance also reflects expanding adoption of its AI computing infrastructure among major technology companies.
AMD reported that Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are running AI models and workloads on its initial Helios rack-scale systems, powered by Instinct MI450 Series GPUs and sixth-generation EPYC processors.
HPE also announced that Vultr will deploy the first AMD Helios by HPE systems, while Oracle Cloud Infrastructure selected sixth-generation EPYC processors for its OCI Compute E7 cloud instances.
AMD introduced its Helion reference architecture, an open blueprint for building rack-scale agentic computing systems, and released ROCm 10, an updated software platform featuring AI development capabilities, performance improvements, and expanded model support.
The company also announced agreements to acquire World Labs, which would add AI model research expertise, and Taalas, a developer of specialized inference silicon technology.
AMD’s financial position included approximately $15.8 billion in cash, cash equivalents, and short-term investments at the end of the quarter, compared with $7.2 billion in the prior-year period.
The company reported approximately $554 million in quarterly free cash flow and $4.2 billion in adjusted EBITDA.
Looking ahead, AMD expects fourth-quarter 2026 revenue of approximately $17 billion, plus or minus 3%. The midpoint represents anticipated year-over-year revenue growth of approximately 66% and sequential growth of approximately 27%.
AMD also expects fourth-quarter non-GAAP gross margin of approximately 55%.
The outlook reflects expectations for continued demand across the Data Center portfolio and increased production of Helios systems and next-generation Venice processors.
The third-quarter results demonstrate AMD’s growing exposure to AI infrastructure spending, with Data Center operations increasingly driving revenue growth, operating profitability, and the company’s near-term financial outlook.
KEY QUOTES:
“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year. Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and ‘Venice’ production. With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years.”
Dr. Lisa Su, Chair And CEO Of AMD
“Third quarter revenue grew 45% year-over-year to a record $13.4 billion, while non-GAAP earnings per share grew 74%, demonstrating the significant operating leverage in our business model as our Data Center business drives scale. Our fourth-quarter outlook reflects accelerating revenue and earnings growth, driven by strong demand across our Data Center portfolio.”
Jean Hu, Executive Vice President, Chief Financial Officer And Treasurer Of AMD
