AMD reported record third-quarter revenue of $13.4 billion, up 45% from a year earlier, as sales in its data center segment nearly doubled on demand for its Instinct GPUs and EPYC processors. The company said on 3 November that it expects fourth-quarter revenue of about $17 billion, plus or minus 3%, which at the midpoint would represent growth of roughly 66% year over year.
Data center segment revenue reached a record $8.5 billion, up 97% year over year, which AMD attributed to strong demand for EPYC processors and the launch of its Instinct MI450 Series GPUs. The company reported gross margin of 54% on a GAAP basis and 56% non-GAAP, operating income of $2.8 billion GAAP and $3.9 billion non-GAAP, and net income of $2.4 billion GAAP and $3.5 billion non-GAAP. Diluted earnings per share were $1.46 GAAP and $2.09 non-GAAP.
"We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year," said Dr. Lisa Su, AMD chair and CEO. She said demand for Instinct and EPYC products continued to strengthen, and that the company expects growth to accelerate in the fourth quarter as it scales Helios and "Venice" production.
Chief financial officer Jean Hu said: "Third quarter revenue grew 45% year-over-year to a record $13.4 billion, while non-GAAP earnings per share grew 74%, demonstrating the significant operating leverage in our business model as our Data Center business drives scale." AMD said its fourth-quarter outlook reflects accelerating revenue and earnings growth on data center demand, with non-GAAP gross margin expected at approximately 55%. The company noted that its outlook statements are based on current expectations and that actual results could differ materially.
The client and gaming segment brought in $3.7 billion, down 8% year over year. Client revenue was $2.9 billion, up 7% on Ryzen mobile processor sales, while gaming revenue fell 40% to $773 million on lower semi-custom and graphics revenue. Embedded segment revenue was $1.1 billion, up 29%, led by aerospace and defense, automotive, communications and industrial markets.
AMD said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on the first Helios rackscale solutions, powered by Instinct MI450 Series GPUs and 6th Gen EPYC CPUs, and that HPE announced Vultr will deploy the first Helios systems from HPE. Oracle Cloud Infrastructure said its OCI Compute E7 instances will run on 6th Gen EPYC. AMD also released ROCm 10 and introduced the Helion reference architecture for rack-scale systems, and said the EuroHPC JU selected its Instinct MI430X GPUs and 6th Gen EPYC processors to power the LUMI-AI supercomputer.
The company said it has agreements to acquire World Labs, bringing model research expertise, and Taalas, adding specialised inference silicon. On the PC side, AMD said its Ryzen AI Halo platform is now available, with HP, Lenovo, Framework and GMKtec expanding availability of systems built on Ryzen AI Max PRO 400 Series processors, and it debuted the Threadripper Halo Station, which it says can run trillion-parameter models locally.
The front page in your inbox each weekday morning: the lead, the picks, and why each one earned its place.
Quarterly revenue by segment
US$ billion
Third quarter 2026, as reported by AMD. Source: AMD
§
Analysis
Why This Matters
AMD's data center revenue nearly doubling shows the AI infrastructure buildout is lifting chip suppliers beyond the market leader, with the segment now the majority of AMD's sales.
The fourth-quarter guidance of about $17 billion, if met, implies growth accelerating rather than slowing, a signal investors will read across the semiconductor sector.
Weakness in gaming, down 40%, shows the expansion is concentrated in AI and server products rather than consumer hardware.
Background
AMD designs processors and graphics chips for data centers, personal computers, gaming consoles and embedded systems, and competes with Intel and Nvidia across those markets. Its Instinct GPUs are its bid for the AI accelerator business, and the quarterly report is the company's main public scorecard on how quickly that business is scaling.
Key Perspectives
Lisa Su, AMD chair and CEO: says demand for Instinct and EPYC products continued to strengthen and that growth should accelerate in the fourth quarter as Helios and "Venice" production scales.
Jean Hu, AMD chief financial officer: says the quarter shows significant operating leverage in the business model as the data center business drives scale, with the fourth-quarter outlook reflecting accelerating revenue and earnings growth.
What to Watch
Whether fourth-quarter revenue lands near the $17 billion midpoint, and whether non-GAAP gross margin holds at about 55%.
Progress on ramping Helios rackscale systems and "Venice" production, which management tied to the acceleration it expects.
Completion of the announced acquisitions of World Labs and Taalas, which AMD says would add model research and inference silicon capabilities.
12 claims in this story checked against 1 source: 12 supported.
Show each claim
SupportedAMD posted record third-quarter revenue of $13.4 billion.Advanced Micro Devices, Inc.: “Third quarter revenue was $13.4 billion”
SupportedAMD’s data center revenue nearly doubled year over year.Advanced Micro Devices, Inc.: “Data Center segment revenue grows 97% year-over-year”
SupportedAMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%.Advanced Micro Devices, Inc.: “For the fourth quarter of 2026, AMD expects revenue to be approximately $17 billion, plus or minus 3%.”
SupportedAt the midpoint, the fourth-quarter revenue outlook represents about 66% year-over-year growth.Advanced Micro Devices, Inc.: “The mid-point of the revenue range represents year-over-year growth of approximately 66%”
SupportedThird-quarter revenue was up 45% year over year.Advanced Micro Devices, Inc.: “Third quarter revenue grew 45% year-over-year to a record $13.4 billion”
SupportedLisa Su said: “We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,”Advanced Micro Devices, Inc.: ““We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” said Dr. Lisa Su, AMD chair and CEO.”
SupportedLisa Su said demand for Instinct and EPYC products continued to strengthen and AMD expected fourth-quarter growth to accelerate as it scaled Helios and Venice production.Advanced Micro Devices, Inc.: ““Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and ‘Venice’ production.””
SupportedData center segment revenue was a record $8.5 billion, up 97% year over year.Advanced Micro Devices, Inc.: “Data Center segment revenue was a record $8.5 billion, up 97% year-over-year”
SupportedAMD reported gross margin of 54% GAAP and 56% non-GAAP.Advanced Micro Devices, Inc.: “gross margin was 54%”
SupportedJean Hu said: “Third quarter revenue grew 45% year-over-year to a record $13.4 billion, while non-GAAP earnings per share grew 74%, demonstrating the significant operating leverage in our business model as our Data Center business drives scale.”Advanced Micro Devices, Inc.: ““Third quarter revenue grew 45% year-over-year to a record $13.4 billion, while non-GAAP earnings per share grew 74%, demonstrating the significant operating leverage in our business model as our Data Center business drives scale,” said Jean Hu”
SupportedClient and Gaming segment revenue was $3.7 billion, down 8% year over year.Advanced Micro Devices, Inc.: “Client and Gaming segment revenue was $3.7 billion, down 8% year-over-year.”
SupportedEmbedded segment revenue was $1.1 billion, up 29%.Advanced Micro Devices, Inc.: “Embedded segment revenue was $1.1 billion, up 29% year-over-year”
