AMD (AMD) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $34.6B in 2025, up 34% year-over-year, with strong growth across all business segments, especially data center and AI.

• Q4 2025 revenue reached $10.3B, up 34% year-over-year, driven by record sales of EPYC, Ryzen, and Instinct processors.

• Net income for the year rose 42% to $2.5B (non-GAAP), with GAAP net income at $4.3B (up 164% YoY); free cash flow for 2025 was $5.5B.

• Significant market share gains in server and PC processors, and rapid scaling of the data center AI business.

• Strong cash position with $10.6B in cash, cash equivalents, and short-term investments at year-end.

Financial highlights

• Q4 2025 gross margin was 54% (GAAP) and 57% (non-GAAP), both up 3 percentage points YoY; full-year non-GAAP gross margin was 52%.

• Q4 operating income was $1.8B (GAAP, up 101% YoY) and $2.9B (non-GAAP, up 41% YoY); Q4 net income (GAAP) was $1.5B, up 213% YoY.

• Data center segment Q4 revenue was $5.4B, up 39% YoY; client & gaming Q4 revenue was $3.9B, up 37% YoY; embedded Q4 revenue was $950M, up 3% YoY.

• FY 2025 GAAP EPS was $2.65 (up 165% YoY); non-GAAP EPS was $4.17 (up 26% YoY).

• Record free cash flow of $2.1B in Q4 2025.

Outlook and guidance

• Q1 2026 revenue expected at ~$9.8B (±$300M), up ~32% YoY but down ~5% sequentially, including ~$100M of Instinct MI308 sales to China.

• Non-GAAP gross margin for Q1 2026 guided at ~55%; operating expense at ~$3.05B; effective tax rate at ~13%.

• Long-term targets reaffirmed: >35% CAGR revenue growth over 3–5 years, operating margin expansion, and annual EPS >$20.