Q3 FY2026
Filed Nov 3, 2026AMD Reports Third Quarter 2026 Financial Results
Record $13.4 billion quarterly revenue grew 45% year-over-year and 16% sequentially, led by 97% Data Center revenue growth. GAAP operating income more than doubled year-over-year, non-GAAP diluted EPS grew 74%, and fourth-quarter revenue outlook calls for approximately $17 billion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenueGAAP | $13.38B | Up 16% | Up 45% |
| Q3 2026 gross profitGAAP | $7.21B | Up 16% | Up 51% |
| Q3 2026 gross marginGAAP | 54% | Flat | Up 2 ppts |
| Q3 2026 operating expensesGAAP | $4.38B | Up 4% | Up 25% |
| Q3 2026 operating expenses/revenueGAAP | 33% | – | – |
| Q3 2026 operating incomeGAAP | $2.83B | Up 42% | Up 123% |
| Q3 2026 operating marginGAAP | 21% | Up 4 ppts | Up 7 ppts |
| Q3 2026 net incomeGAAP | $2.43B | Up 6% | Up 95% |
| Q3 2026 diluted earnings per shareGAAP | $1.46 | Up 6% | Up 95% |
| Q3 2026 non-GAAP gross profitnon-GAAP | $7.48B | Up 15% | Up 50% |
| Q3 2026 non-GAAP gross marginnon-GAAP | 56% | Flat | Up 2 ppts |
| Q3 2026 non-GAAP operating expensesnon-GAAP | $3.56B | Up 5% | Up 29% |
| Q3 2026 non-GAAP operating expenses/revenuenon-GAAP | 27% | – | – |
| Q3 2026 non-GAAP operating incomenon-GAAP | $3.92B | Up 27% | Up 75% |
| Q3 2026 non-GAAP operating marginnon-GAAP | 29% | Up 2 ppts | Up 5 ppts |
| Q3 2026 non-GAAP net incomenon-GAAP | $3.47B | Up 26% | Up 77% |
| Q3 2026 non-GAAP diluted earnings per sharenon-GAAP | $2.09 | Up 26% | Up 74% |
| Q3 2026 income from continuing operations before income taxes and equity incomeGAAP | $1.87B | – | – |
| Q3 2026 income tax provision (benefit)GAAP | −$555M | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $4.16B | – | – |
| Q3 2026 net cash provided by operating activities of continuing operationsGAAP | $1.20B | – | – |
| Q3 2026 operating cash flow margin from continuing operationsGAAP | 9% | – | – |
| Q3 2026 capital expendituresother | $648M | – | – |
| Q3 2026 free cash flownon-GAAP | $554M | – | – |
| Q3 2026 free cash flow marginnon-GAAP | 4% | – | – |
| Nine months ended September 26, 2026 revenueGAAP | $35.17B | – | – |
| Nine months ended September 26, 2026 gross profitGAAP | $18.83B | – | – |
| Nine months ended September 26, 2026 gross marginGAAP | 54% | – | – |
| Nine months ended September 26, 2026 operating incomeGAAP | $6.30B | – | – |
| Nine months ended September 26, 2026 net incomeGAAP | $6.11B | – | – |
| Nine months ended September 26, 2026 diluted earnings per shareGAAP | $3.69 | – | – |
| Nine months ended September 26, 2026 adjusted EBITDAnon-GAAP | $10.22B | – | – |
| Nine months ended September 26, 2026 free cash flownon-GAAP | $4.68B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Data CenterStrong demand for AMD EPYC processors and the launch of AMD Instinct MI450 Series GPUs. | $8.5B | – | up 97% year-over-year |
| Client and GamingClient business revenue was $2.9 billion, up 7% year-over-year, driven by sales of AMD Ryzen mobile processors; Gaming business revenue was $773 million, down 40% year-over-year, due to lower semi-custom and graphics revenue. | $3.7B | – | down 8% year-over-year |
| EmbeddedGrowth in aerospace and defense, automotive, communications and industrial end markets. | $1.1B | – | up 29% year-over-year |
Q4 2026 outlook
- Revenueapproximately $17 billion, plus or minus 3%
- Gross marginapproximately 55%
- NoteThe mid-point of the revenue range represents year-over-year growth of approximately 66%.
- NoteThe mid-point of the revenue range represents a sequential increase of approximately 27%.
Capital returns
- Repurchases of common stock were $221 million for the nine months ended September 26, 2026.
- Stock repurchases for tax withholding on employee equity plans were $1,495 million for the three months ended September 26, 2026.
- Stock repurchases for tax withholding on employee equity plans were $1,836 million for the nine months ended September 26, 2026.
What drove it
- Data Center revenue was driven by strong demand for AMD EPYC processors and the launch of AMD Instinct MI450 Series GPUs.
- Client revenue was driven by sales of AMD Ryzen mobile processors.
- Embedded growth was led by aerospace and defense, automotive, communications and industrial end markets.
- AMD expects fourth-quarter growth to accelerate as it scales Helios and “Venice” production.
- Non-GAAP operating income increased to $3,923 million as revenue scale lifted non-GAAP operating margin to 29%.
Concerns
- Client and Gaming segment revenue declined 8% year-over-year.
- Gaming business revenue declined 40% year-over-year due to lower semi-custom and graphics revenue.
- Q3 net cash provided by operating activities of continuing operations was $1,202 million, versus $1,788 million in Q3 2025, while purchases of property and equipment were $648 million versus $258 million.
- GAAP other expense, net was $902 million in Q3 2026, including a $1,097 million change in fair value of warrant liability.
- Inventories increased to $11,463 million as of September 26, 2026 from $7,920 million as of December 27, 2025.
What to watch
- Execution on the Q4 2026 outlook of approximately $17 billion in revenue, plus or minus 3%, and approximately 55% non-GAAP gross margin.
- Demand for AMD Instinct GPUs and AMD EPYC CPUs, which drove 97% year-over-year Data Center growth.
- Scaling of Helios and “Venice” production.
- Whether Client growth offsets lower semi-custom and graphics revenue in Gaming.
- The impact of customer warrants on GAAP earnings, including quarterly remeasurement driven by AMD’s stock price and other valuation assumptions.
Balance sheet and cash flow
- Cash and cash equivalents were $7,404 million as of September 26, 2026, compared with $5,539 million as of December 27, 2025.
- Short-term investments were $8,372 million as of September 26, 2026, compared with $5,013 million as of December 27, 2025.
- Cash, cash equivalents and short-term investments were $15,776 million as of September 26, 2026, compared with $7,243 million as of September 27, 2025.
- Total debt was $7,079 million as of September 26, 2026, compared with $3,220 million as of September 27, 2025.
- Long-term debt was $7,079 million as of September 26, 2026, compared with $2,348 million as of December 27, 2025.
- Inventories were $11,463 million as of September 26, 2026, compared with $7,920 million as of December 27, 2025.
- Accounts receivable, net were $9,209 million as of September 26, 2026, compared with $6,315 million as of December 27, 2025.
- Q3 net cash provided by operating activities was $1,202 million, compared with $2,159 million in Q3 2025.
- Q3 net cash used in investing activities was $1,243 million, compared with $1,337 million in Q3 2025.
- Q3 net cash provided by financing activities was $2,348 million, compared with net cash used in financing activities of $450 million in Q3 2025.
Analysis
AMD reported a record third quarter, with GAAP revenue of $13,377 million, up 45% year-over-year and 16% sequentially. Data Center was the central growth engine: segment revenue reached a record $8.5 billion and increased 97% year-over-year, driven by demand for AMD EPYC processors and the launch of AMD Instinct MI450 Series GPUs. Embedded revenue also increased 29% year-over-year to $1.1 billion, while Client and Gaming revenue declined 8% to $3.7 billion as Gaming revenue fell 40%.
Profitability expanded sharply with revenue scale. GAAP gross margin was 54%, up 2 points year-over-year and flat sequentially, while GAAP operating income rose 123% year-over-year to $2,832 million and operating margin expanded to 21% from 14%. On a non-GAAP basis, gross margin was 56%, operating income was $3,923 million, operating margin was 29%, and diluted EPS was $2.09, up 74% year-over-year and 26% sequentially.
GAAP net income was $2,428 million and diluted EPS was $1.46. GAAP results included a $1,097 million change in fair value of warrant liability, while non-GAAP net income was $3,471 million. The reconciliation also shows a $(555) million GAAP income tax benefit in the quarter, compared with a $252 million provision in the prior quarter and a $153 million provision in the prior-year quarter.
Cash conversion was weaker than reported earnings growth in the quarter. Net cash provided by operating activities of continuing operations was $1,202 million, versus $1,788 million a year earlier, and free cash flow was $554 million, versus $1,530 million. Capital expenditures increased to $648 million from $258 million in Q3 2025. Inventories rose to $11,463 million as of September 26, 2026, while cash, cash equivalents and short-term investments were $15,776 million and total debt was $7,079 million.
For Q4 2026, AMD expects revenue of approximately $17 billion, plus or minus 3%, with the midpoint representing approximately 66% year-over-year growth and approximately 27% sequential growth. It expects non-GAAP gross margin of approximately 55%. The outlook is tied to strong Data Center portfolio demand and scaling Helios and “Venice” production, while Gaming remains the principal reported weak area because of lower semi-custom and graphics revenue.
Management, verbatim
We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year.
Dr. Lisa Su, AMD chair and CEO
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.
Dr. Lisa Su, AMD chair and CEO
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.
Jean Hu, AMD executive vice president, chief financial officer and treasurer
Not in the filing
stated, not guessed- Prior-quarter and prior-year figures for segment revenue are not provided in the Segment fields as year-over-year or sequential changes for all segments and subsegments; sequential segment changes were not stated.
- Q4 2026 guidance for operating expenses and tax rate was not provided.
- A Q4 2026 GAAP gross-margin outlook was not provided; AMD stated that reconciliation of the forward-looking non-GAAP gross-margin outlook is not practicable.
- Dividend information was not provided.
- Prior outlook was not provided, so no comparison of Q3 2026 actual results with prior guidance is available.
- GAAP and non-GAAP tax rates were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.