AMD reported record third-quarter revenue of $13.4 billion on Tuesday, up 45% from a year earlier, as sales of its data center chips nearly doubled. The company also guided fourth-quarter revenue to roughly $17 billion, plus or minus 3%, a forecast that sent its shares up more than 7% in after-hours trading.
The Data Center segment generated $8.5 billion in the quarter ended September 26, up 97% year over year. AMD attributed the growth to its EPYC server processors and the launch of its Instinct MI450 Series GPUs, the company's newest AI accelerators.
“Demand for our Instinct and EPYC products continued to strengthen”— Lisa Su, AMD Chair and CEO
Profit grew faster than sales. GAAP operating income rose 123% to $2.8 billion, and GAAP net income climbed 95% to $2.4 billion, or $1.46 per diluted share. On a non-GAAP basis, AMD earned $3.5 billion, or $2.09 per share, up 74% from $1.20 a year ago.
Key facts
- 01AMD reported record Q3 2026 revenue of $13.4 billion, up 45% year over year and 16% sequentially.
- 02Data Center revenue rose 97% to $8.5 billion, driven by EPYC CPUs and the Instinct MI450 GPU launch.
- 03Q4 guidance is about $17 billion, plus or minus 3%, versus a $16.23 billion analyst consensus.
- 04Non-GAAP EPS was $2.09 against $1.94 expected; GAAP net income rose 95% to $2.4 billion.
- 05Gaming revenue fell 40% to $773 million while Embedded revenue grew 29% to $1.1 billion.
Both headline figures cleared analyst expectations. Analysts had expected adjusted earnings of $1.94 per share on revenue of $13.06 billion, against AMD's actual $2.09 and $13.38 billion. GAAP gross margin came in at 54%, up 2 points year over year, with non-GAAP gross margin at 56%.
The fourth-quarter outlook is the bigger number. At the midpoint, $17 billion would represent about 66% year-over-year growth and 27% sequential growth, ahead of the $16.23 billion analysts had forecast. AMD guided non-GAAP gross margin to about 55% for the period.
AMD's other businesses were mixed. The Client and Gaming segment brought in $3.7 billion, down 8% year over year: Client processor revenue rose 7% to $2.9 billion, while Gaming revenue fell 40% to $773 million. Embedded revenue grew 29% to $1.1 billion.
That leaves the Data Center business supplying $8.5 billion of AMD's $13.4 billion quarterly total, more than double the $3.7 billion that PCs and gaming produced combined.
AMD released the results after the market closed on November 3. Lisa Su, AMD's chair and CEO, said the company expects growth to accelerate further in the fourth quarter and is "confident in our ability to sustain very strong revenue growth."
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