AMD's third-quarter revenue rises 45% to a record $13.4 billion
Nov 4, 2026
Advanced Micro Devices (NASDAQ: AMD) reported its third-quarter 2026 results on Tuesday, November 3, 2026. The quarter ended on September 26, 2026.
Third-quarter results
According to the company's release, compared with the third quarter of 2025:
- revenue rose 45% to a record $13.4 billion
- the gross margin was 54% under GAAP and 56% on a non-GAAP basis
- operating income was $2.8 billion under GAAP and $3.9 billion on a non-GAAP basis
- net income was $2.4 billion under GAAP and $3.5 billion on a non-GAAP basis
- earnings per share were $1.46 under GAAP and $2.09 on a non-GAAP basis, up 74%
AMD said its GAAP results include a $1.1 billion charge related to a change in the fair value of a warrant liability, which is excluded from the non-GAAP figures.
Results by segment
- Data Center: record revenue of $8.5 billion, up 97%, with demand for AMD EPYC processors and the launch of AMD Instinct MI450 Series GPUs
- Client: revenue of $2.9 billion, up 7%
- Gaming: revenue of $773 million, down 40%
- Embedded: revenue of $1.1 billion, up 29%
Fourth-quarter outlook
For the fourth quarter of 2026, AMD expects:
- revenue of about $17 billion, plus or minus 3%, which would be about 66% higher than a year earlier at the midpoint
- a non-GAAP gross margin of about 55%
CEO Lisa Su said demand for the company's Instinct and EPYC products continued to strengthen and that AMD expects growth to accelerate in the fourth quarter as it scales production of its Helios rack-scale systems and "Venice" processors. According to Reuters, on the earnings call Su said AMD expects revenue to grow by more than 80% in 2027. This is a company expectation and may not be achieved.
Cash and investments
AMD ended the quarter with $15.8 billion in cash, cash equivalents and short-term investments. Free cash flow was $554 million in the quarter and $4.7 billion for the first nine months of the year. Total debt was $7.1 billion.
What the segments are
The Data Center segment includes server processors (EPYC) and accelerators (Instinct GPUs) used in data centres, including for artificial intelligence. Client covers processors for desktop and laptop PCs. Gaming includes graphics cards and chips for game consoles. Embedded covers chips used in industrial, automotive, communications and aerospace products.
GAAP and non-GAAP figures
GAAP results follow US accounting rules. Non-GAAP figures exclude certain items, such as stock-based compensation, acquisition-related costs and, in this quarter, the change in the value of a warrant liability. Companies use non-GAAP measures to show underlying performance, but these measures are not standardised and can differ between companies.
AI chips and data centres
Large technology companies and cloud providers are building data centres to train and run AI models. These data centres use processors and accelerators, such as GPUs, along with memory and networking equipment. AMD competes in this market with other chip designers. Demand from a small number of very large customers can make results in this market change quickly from quarter to quarter.
What to watch
Key items include production of the Helios systems and "Venice" processors, demand for AI accelerators, the fourth-quarter results early next year and the company's plans for 2027.
Risks and uncertainties
Semiconductor demand can change quickly, and the AI chip market is competitive. Supply chain constraints and export rules can affect sales. Outlooks may not be achieved. Semiconductor shares can be volatile.
What this means for investors
For Investing.one users following AMD, the outlook and Data Center trends may be relevant. The information above is based on the company's results release.
Sources
- AMD Q3 2026 results release (SEC 8-K)
- Yahoo Finance (Reuters): AMD revenue guidance and 2027 comments
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