AMD (AMD) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $13.377B, up 45% YoY; non-GAAP diluted EPS was $2.09, up 74%, with Data Center leading growth.

• Data Center rose to 64% of revenue from 47% a year earlier; management expects it to exceed 80% of revenue in 2027.

• Management expects 2027 revenue growth above 80%, server revenue to double, and Data Center AI to grow significantly more than 2x.

Financial highlights

• GAAP operating income was $2.832B, up 123% YoY, and net income was $2.428B, up 95%; non-GAAP operating income was $3.923B, up 75%, and net income was $3.471B, up 77%.

• GAAP diluted EPS was $1.46; non-GAAP diluted EPS was $2.09, up 74% YoY.

• GAAP gross margin was 54%, up 2 percentage points YoY; non-GAAP gross margin was 56%, up 190 bps YoY.

• Free cash flow was $554M, versus $1.530B a year earlier; operating cash flow from continuing operations was $1.2B.

Outlook and guidance

• Q4 revenue guidance is $17B, plus or minus 3%, implying ~66% YoY and ~27% sequential growth; non-GAAP gross margin is expected at ~55%, with operating expenses of ~$3.75B.

• Q4 segment outlook: Data Center revenue up ~50% sequentially, Client and Gaming down >20%, and Embedded growing by double digits.

• For 2027, total revenue is expected to grow >80%; Data Center is expected to exceed 80% of revenue, server revenue to double, and Data Center AI to grow significantly more than 2x.

• 2027 OpEx growth is expected below half the revenue growth rate; management expects significant operating-margin expansion, with quarterly gross margin varying by Data Center AI and server mix.