Key Highlights

  • Revenue rose 45% to a record USD 13.4 billion, and GAAP diluted EPS of USD 1.46 compared with USD 0.75.
  • Non-GAAP Earnings Per Share grew 74% to USD 2.09, with non-GAAP Operating Income of USD 3.9 billion.
  • Data Center Revenue rose to USD 8.5 billion, while Client and Gaming revenue fell 8% to USD 3.7 billion.
  • Management guided fourth-quarter revenue to USD 17 billion, plus or minus 3%, with non-GAAP gross Margin near 55%.

Record Quarter

Advanced Micro Devices (NASDAQ:AMD) reported third-quarter 2026 revenue of USD 13.4 billion, up 45% from USD 9.2 billion a year earlier and up 16% from USD 11.5 billion in the second quarter. GAAP gross margin was 54%, up from 52%, and GAAP operating income more than doubled to USD 2.8 billion from USD 1.3 billion. GAAP Net Income was USD 2.4 billion, or USD 1.46 per diluted share, against USD 1.2 billion, or USD 0.75.

On a non-GAAP basis, gross margin was 56%, operating income was USD 3.9 billion for a 29% margin versus 24%, and net income was USD 3.5 billion. Non-GAAP diluted EPS of USD 2.09 compared with USD 1.66 in the second quarter. Chair and Chief Executive Officer Lisa Su said revenue exceeded the high end of guidance as Data Center sales rose, and the chief financial officer said the quarter showed Operating Leverage as that Business scales.

Analyst estimates were EPS of USD 1.95 against reported EPS of USD 2.09, and revenue of USD 13.10 billion against reported revenue of USD 13.38 billion.

Segment Performance

Data Center segment revenue was a record USD 8.5 billion, up 97% from USD 4.3 billion, driven by EPYC processors and the launch of Instinct MI450 Series GPUs. For the first nine months, Data Center revenue was USD 21.0 billion.

Client and Gaming revenue was USD 3.7 billion, down 8%. Within it, Client revenue was USD 2.9 billion, up 7% on Ryzen mobile processors, while Gaming revenue was USD 773 million, down 40%. Operating expenses grew 25% on a GAAP basis to USD 4.4 billion, slower than the 51% rise in gross profit, which explains the seven-point gain in GAAP Operating Margin to 21%.

Cash and Fourth-Quarter Guidance

Cash and cash equivalents were USD 7.4 billion at quarter end, compared with USD 4.8 billion a year earlier. For the fourth quarter of 2026, AMD guided revenue to USD 17 billion, plus or minus 3%, and non-GAAP gross margin of 55%.

Su said Demand for Instinct and EPYC continues to strengthen and that she sees growth accelerating further in the fourth quarter as production of the Helios rack-scale platform and the Venice processor scales. The chief financial officer said the fourth-quarter outlook reflects accelerating revenue and earnings growth across the Data Center portfolio. She described the company as confident in sustaining revenue growth and expanding profitability over the coming years.

Measures to Follow

Instinct GPU ramp timing, the gross margin effect of new rack-scale products and a recovery in Gaming are the measures to follow into the fourth quarter. Operating Expense growth of 29% on a non-GAAP basis, against revenue growth of 45%, is the source of the operating leverage that management highlighted.