AMD delivers record quarter as Data Center segment revenue grows 97% year-over-year, driven by record sales of AMD Instinct GPUs and AMD EPYC CPUs

SANTA CLARA, Calif., Nov. 03, 2026 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced financial results for the third quarter of 2026. Third quarter revenue was $13.4 billion, gross margin was 54%, operating income was $2.8 billion, net income was $2.4 billion and diluted earnings per share was $1.46. On a non-GAAP(*) basis, gross margin was 56%, operating income was $3.9 billion, net income was $3.5 billion and diluted earnings per share was $2.09.

“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. “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. With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years.”

“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, AMD executive vice president, chief financial officer and treasurer. “Our fourth-quarter outlook reflects accelerating revenue and earnings growth, driven by strong demand across our Data Center portfolio.”

 
GAAP Quarterly Financial Results
 Q3'26Q3'25Y/YQ2'26Q/Q
Revenue ($M)$13,377$9,246Up 45%$11,536Up 16%
Gross profit ($M)$7,210$4,780Up 51%$6,203Up 16%
Gross margin54%52%Up 2 ppts54%Flat
Operating expenses ($M)$4,378$3,510Up 25%$4,213Up 4%
Operating income ($M)$2,832$1,270Up 123%$1,990Up 42%
Operating margin21%14%Up 7 ppts17%Up 4 ppts
Net income ($M)$2,428$1,243Up 95%$2,297Up 6%
Diluted earnings per share$1.46$0.75Up 95%$1.38Up 6%
      


Non-GAAP(*) Quarterly Financial Results
 Q3'26Q3'25Y/YQ2'26Q/Q
Revenue ($M)$13,377$9,246Up 45%$11,536Up 16%
Gross profit ($M)$7,483$4,992Up 50%$6,488Up 15%
Gross margin56%54%Up 2 ppts56%Flat
Operating expenses ($M)$3,560$2,754Up 29%$3,394Up 5%
Operating income ($M)$3,923$2,238Up 75%$3,094Up 27%
Operating margin29%24%Up 5 ppts27%Up 2 ppts
Net income ($M)$3,471$1,965Up 77%$2,760Up 26%
Diluted earnings per share$2.09$1.20Up 74%$1.66Up 26%
      

Segment Summary

  • Data Center segment revenue was a record $8.5 billion, up 97% year-over-year, driven by strong demand for AMD EPYC™ processors and the launch of AMD Instinct™ MI450 Series GPUs. 
  • Client and Gaming segment revenue was $3.7 billion, down 8% year-over-year. Client 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.
  • Embedded segment revenue was $1.1 billion, up 29% year-over-year, led by growth in aerospace and defense, automotive, communications and industrial end markets.

Recent Highlights

  • AMD solutions and software are powering superintelligence infrastructure at scale:
    • Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on the first AMD Helios™ rackscale solutions, powered by AMD Instinct MI450 Series GPUs and 6th Gen AMD EPYC CPUs.
    • HPE announced that Vultr will deploy the first AMD Helios by HPE systems.
    • Oracle Cloud Infrastructure announced its OCI Compute E7 cloud compute instances will be powered by 6th Gen AMD EPYC CPUs, supporting enterprise applications and the CPU services surrounding models.
    • AMD introduced the AMD Helion reference architecture, an open, flexible blueprint for building rack-scale agentic systems that lets customers configure the mix of CPUs and GPUs based on their workloads.
    • AMD ROCm™ 10 was released, bringing AI-native developer experiences to AMD platforms with ROCm.AI, along with performance improvements and updated libraries, compilers, frameworks, tools and model support.
    • The EuroHPC JU selected AMD Instinct MI430X GPUs and 6th Gen AMD EPYC processors to power the LUMI-AI supercomputer.
    • Google Cloud and Microsoft announced general availability of storage-optimized cloud instances powered by 5th Gen AMD EPYC CPUs.
  • AMD is expanding its capabilities across the full superintelligence stack through strategic acquisitions:
    • AMD announced an agreement to acquire World Labs, bringing leading model research expertise to AMD to help shape superintelligence infrastructure and strengthen the open ecosystem.
    • AMD announced an agreement to acquire Taalas, adding specialized inference silicon technology to further differentiate AMD system-level solutions and deliver breakthrough inference performance and efficiency.
  • AMD advanced its adaptive and embedded portfolio and expanded its role in physical AI systems:
    • AMD began sampling the AMD Versal™ AI Core XQRVC1902 space-grade adaptive SoC designed to support missions lasting up to 15 years.
    • Kodiak AI announced that its next generation autonomous truck platform is powered by AMD EPYC processors.
    • AMD introduced AMD Ross™, an agentic tool for embedded system design that helps customers accelerate time to market and improve performance for AMD embedded solutions.
  • AMD expanded its PC offerings for local agentic superintelligence and gaming:
    • The AMD Ryzen™ AI Halo platform powered by Ryzen™ AI Max PRO 400 Series processors is now available, bringing the performance, memory and software ecosystem developers and creators need to build and run models locally.
    • HP, Lenovo, Framework and GMKtec expanded availability of systems powered by AMD Ryzen™ AI Max PRO 400 Series processors.
    • AMD debuted the Threadripper Halo Station, powered by the AMD Threadripper 9955WX CPU and AMD Instinct MI350p GPU, able to run trillion-parameter models locally.

Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

For the fourth quarter of 2026, AMD expects revenue to be approximately $17 billion, plus or minus 3%. The mid-point of the revenue range represents year-over-year growth of approximately 66% and a sequential increase of approximately 27%. Non-GAAP gross margin is expected to be approximately 55%.

AMD Teleconference
AMD will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its third quarter 2026 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.

 
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data and percentages) (Unaudited)
  Three Months Ended
  September 26,
2026		 June 27,
2026		 September 27,
2025
GAAP gross profit $7,210  $6,203  $4,780 
GAAP gross margin 54% 54%       52%
Stock-based compensation 9  8  7 
Amortization of acquisition-related intangibles 257  260  260 
Recovery of inventory loss at contract manufacturer (1) —  —  (67)
Loss contingency on legal matters 7  17  12 
Non-GAAP gross profit $7,483  $6,488  $4,992 
Non-GAAP gross margin 56% 56% 54%
       
GAAP operating expenses $4,378  $4,213  $3,510 
GAAP operating expenses/revenue % 33% 37% 38%
Stock-based compensation 514  495  412 
Amortization of acquisition-related intangibles 277  284  302 
Acquisition-related and other costs (2) 27  40  42 
Non-GAAP operating expenses $3,560  $3,394  $2,754 
Non-GAAP operating expenses/revenue % 27% 29% 30%
       
GAAP operating income $2,832  $1,990  $1,270 
GAAP operating margin 21% 17%     14%
Stock-based compensation 523  503  419 
Amortization of acquisition-related intangibles 534  544  562 
Recovery of inventory loss at contract manufacturer (1) —  —  (67)
Acquisition-related and other costs (2) 27  40  42 
Loss contingency on legal matters 7  17  12 
Non-GAAP operating income $3,923  $3,094  $2,238 
Non-GAAP operating margin 29% 27% 24%


  Three Months Ended
  September 26,
2026		 June 27,
2026		 September 27,
2025
GAAP net income / earnings per share $2,428  $1.46  $2,297  $1.38  $1,243  $0.75 
Stock-based compensation 523  0.31  503  0.30  419  0.26 
Amortization of acquisition-related intangibles 534  0.32  544  0.33  562  0.34 
Recovery of inventory loss at contract manufacturer (1) —  —  —  —  (67) (0.04)
Acquisition-related and other costs (2) 27  0.02  41  0.02  43  0.03 
Loss contingency on legal matters 7  —  17  0.01  12  0.01 
(Gains) loss on long-term investments, net (67) (0.04) (483) (0.29) (26) (0.02)
Change in fair value of warrant liability (3) 1,097  0.66  —  —  —  — 
Equity income in investee (5) —  (6) —  (10) — 
Income tax provision (1,073) (0.64) (161) (0.10) (140) (0.09)
Loss (income) from discontinued operations, net of tax (4) —  —  8  0.01  (71) (0.04)
Non-GAAP net income / earnings per share $3,471  $2.09  $2,760  $1.66  $1,965  $1.20 


(1) Recovery of inventory loss at contract manufacturer was related to the recovery of losses incurred as a result of an incident at a third-party contract manufacturing facility that occurred in Q1'24.
(2) Acquisition-related and other costs primarily included transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, and workforce rebalancing charges.
(3) Change in fair value of warrant liability relating to the quarterly remeasurement of warrants issued to certain customers is driven by changes in AMD’s stock price and other valuation assumptions.
(4) Loss (income) from discontinued operations pertained to ZT Systems' manufacturing business which was divested in Q4'25 and included the impact from measurement period adjustments in Q1'26.
   

About AMD
AMD (NASDAQ: AMD) drives innovation in high-performance and AI computing to solve the world’s most important challenges. Today, AMD technology powers billions of experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. With a broad portfolio of AI-optimized CPUs, GPUs, networking and software, AMD delivers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing. Learn more at www.amd.com.

Cautionary Statement

This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as, expectations for revenue and earnings growth to accelerate in the fourth quarter of 2026; AMD’s ability to sustain very strong revenue growth and earnings profitability over the coming years; AMD’s business model and expectations regarding operating leverage and scale in its Data Center business; AMD’s anticipated demand across its Data Center portfolio and scaling production of Helios and “Venice”; the expected plans, benefits and timing of AMD’s strategic collaborations, including with Anthropic, Meta, Microsoft, OpenAI, Oracle Cloud Infrastructure, HPE and Kodiak AI; the expected timing, completion and benefits of AMD’s proposed acquisitions of World Labs and Taalas; the features, functionality, performance, availability, timing and expected benefits of future AMD products; and AMD’s expected fourth quarter 2026 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, national-security-based regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD's ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, components (such as memory supply), substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees, leases and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility, including the potential impact on the fair value of customer warrants and AMD's GAAP earnings. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

   
(*) In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue percent, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2026, AMD uses a projected non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provides adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of November 3, 2026, and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.
  -30-
   
  ©2026 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, Instinct, EPYC, ROCm, FidelityFX, Helios, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.
   


 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)
     
  Three Months Ended Nine Months Ended
  September 26,
2026		 June 27,
2026		 September 27,
2025		 September 26,
2026		 September 27,
2025
Net revenue $13,377  $11,536  $9,246  $35,166  $24,369 
Cost of sales 5,910  5,073  4,206  15,559  12,023 
Amortization of acquisition-related intangibles 257  260  260  778  771 
Total cost of sales 6,167  5,333  4,466  16,337  12,794 
Gross profit 7,210  6,203  4,780  18,829  11,575 
Gross margin 54% 54% 52% 54% 47%
Research and development 2,803  2,528  2,139  7,728  5,761 
Marketing, general and administrative 1,298  1,401  1,069  3,952  2,946 
Amortization of acquisition-related intangibles 277  284  302  851  926 
Total operating expenses 4,378  4,213  3,510  12,531  9,633 
Operating income 2,832  1,990  1,270  6,298  1,942 
Interest expense (62) (37) (37) (136) (95)
Other income (expense), net (902) 598  82  (139) 219 
Income from continuing operations before income taxes and equity income 1,868  2,551  1,315  6,023  2,066 
Income tax provision (benefit) (555) 252  153  (65) (558)
Equity income in investee 5  6  10  17  25 
Income from continuing operations, net of tax 2,428  2,305  1,172  6,105  2,649 
Income (loss) from discontinued operations, net of tax —  (8) 71  3  175 
Net income $2,428  $2,297  $1,243  $6,108  $2,824 
           
Earnings per share:          
Basic earnings from continuing operations $1.48  $1.41  $0.72  $3.74  $1.63 
Basic earnings from discontinued operations $—  $(0.01) $0.04  $—  $0.11 
Basic earnings per share $1.48  $1.40  $0.76  $3.74  $1.74 
                
Diluted earnings from continuing operations $1.46  $1.39  $0.71  $3.69  $1.62 
Diluted earnings from discontinued operations $—  $(0.01) $0.04  $—  $0.11 
Diluted earnings per share $1.46  $1.38  $0.75  $3.69  $1.73 
                
Shares used in per share calculation               
Basic 1,636  1,632  1,626  1,633  1,623 
Diluted 1,661  1,659  1,641  1,657  1,632 
           


 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
     
  September 26,
2026		 December 27,
2025
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents $7,404  $5,539 
Short-term investments 8,372  5,013 
Accounts receivable, net 9,209  6,315 
Inventories 11,463  7,920 
Prepaid expenses and other current assets 3,023  2,160 
Total current assets 39,471  26,947 
Property and equipment, net 3,929  2,312 
Goodwill 25,470  25,126 
Acquisition-related intangibles, net 15,101  16,705 
Deferred tax assets 821  384 
Other non-current assets 10,020  5,452 
Total Assets $94,812  $76,926 
     
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $7,756  $2,929 
Accrued liabilities 6,231  5,250 
Current portion of long-term debt, net —  874 
Other current liabilities 499  402 
Total current liabilities 14,486  9,455 
Long-term debt 7,079  2,348 
Long-term operating lease liabilities 1,837  625 
Deferred tax liabilities 295  313 
Other long-term liabilities 2,726  1,186 
     
Stockholders' equity:    
Capital stock:    
Common stock, par value $0.01 16  17 
Additional paid-in capital 61,769  63,365 
Treasury stock, at cost —  (7,079)
Retained earnings 6,720  6,699 
Accumulated other comprehensive loss (116) (3)
Total stockholders' equity 68,389  62,999 
Total Liabilities and Stockholders' Equity $94,812  $76,926 
         


 
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions) (Unaudited)
     
  Three Months Ended Nine Months Ended
  September 26,
2026		 September 27,
2025		 September 26,
2026		 September 27,
2025
Cash flows from operating activities:        
Net income $2,428  $1,243  $6,108  $2,824 
(Income) loss from discontinued operations, net of tax —  (71) (3) (175)
Adjustments to reconcile net income to net cash provided by operating activities:         
Depreciation and amortization 239  192  666  556 
Amortization of acquisition-related intangibles 534  562  1,629  1,697 
Stock-based compensation 523  419  1,513  1,152 
Gains from long-term investments, net (67) (25) (616) (61)
Non-cash impact of warrants issued to customers, net 1,179  —  1,179  — 
Deferred income taxes (321) 218  (427) 18 
Recovery of inventory loss at contract manufacturer —  (67) —  (67)
Other 44  25  105  90 
Changes in operating assets and liabilities:        
Accounts receivable, net (1,928) (1,085) (2,894) (7)
Inventories (2,995) (636) (3,543) (1,579)
Prepaid expenses and other assets (1,070) 118  (2,061) (259)
Accounts payable 2,313  451  4,483  998 
Accrued and other liabilities 323  444  384  (998)
Net cash provided by operating activities of continuing operations 1,202  1,788  6,523  4,189 
Net cash provided by operating activities of discontinued operations —  371  —  920 
Net cash provided by operating activities 1,202  2,159  6,523  5,109 
Cash flows from investing activities:        
Purchases of property and equipment (648) (258) (1,845) (752)
Purchases of short-term investments (2,199) (1,314) (6,754) (2,110)
Proceeds from maturity of short-term investments 1,777  299  3,044  982 
Proceeds from sale of short-term investments 80  18  366  66 
Purchases of long-term investments (238) (74) (1,082) (432)
Acquisitions, net of cash acquired —  —  (129) (1,716)
Other (15) —  (15) — 
Net cash used in investing activities of continuing operations (1,243) (1,329) (6,415) (3,962)
Purchases of property and equipment —  (8) —  (30)
Payment for working capital adjustment on divestiture —  —  (243) — 
Net cash used in investing activities of discontinued operations —  (8) (243) (30)
Net cash used in investing activities (1,243) (1,337) (6,658) (3,992)
Cash flows from financing activities:        
Proceeds from debt and commercial paper issuance, net of issuance costs 4,726  —  4,726  2,441 
Repayment of debt and commercial paper (875) —  (875) (950)
Proceeds from sales of common stock through employee equity plans 5  10  210  169 
Repurchases of common stock —  (89) (221) (1,316)
Stock repurchases for tax withholding on employee equity plans (1,495) (371) (1,836) (447)
Other (13) —  (21) — 
Net cash provided by (used in) financing activities 2,348  (450) 1,983  (103)
Net increase in cash, cash equivalents and restricted cash 2,307  372  1,848  1,014 
Cash, cash equivalents and restricted cash at beginning of period 5,097  4,453  5,556  3,811 
Cash, cash equivalents and restricted cash at end of period $7,404  $4,825  $7,404  $4,825 
         
Reconciliation of cash, cash equivalents and restricted cash        
Cash and cash equivalents $7,404  $4,808  $7,404  $4,808 
Restricted cash included in Prepaid expenses and other current assets —  17  —  17 
Cash, cash equivalents and restricted cash at end of period $7,404  $4,825  $7,404  $4,825 
         


 
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions) (Unaudited)
     
  Three Months Ended Nine Months Ended
  September 26,
2026		 June 27,
2026		 September 27,
2025		 September 26,
2026		 September 27,
2025
Segment and Disaggregated Revenue Information (1)          
Net Revenue:          
Data Center Segment $8,546  $6,718  $4,341  $21,039  $11,255 
Client and Gaming Segment               
Client 2,949  3,062  2,750  8,896  7,543 
Gaming 773  779  1,298  2,272  3,067 
Total Client and Gaming 3,722  3,841  4,048  11,168  10,610 
Embedded Segment 1,109  977  857  2,959  2,504 
Total net revenue $13,377  $11,536  $9,246  $35,166  $24,369 
           
Operating Income (Loss):          
Data Center Segment $2,882  $2,103  $1,074  $6,584  $1,851 
Client and Gaming Segment 573  582  867  1,730  2,130 
Embedded Segment 453  386  283  1,177  886 
All other (1,076) (1,081) (954) (3,193) (2,925)
Total operating income $2,832  $1,990  $1,270  $6,298  $1,942 
           
Other Data          
Capital expenditures $648  $808  $258  $1,845  $752 
Adjusted EBITDA (2) $4,162  $3,315  $2,430  $10,223  $5,470 
Cash, cash equivalents and short-term investments $15,776  $13,111  $7,243  $15,776  $7,243 
Free cash flow (3) $554  $1,558  $1,530  $4,678  $3,437 
Total assets $94,812  $84,464  $76,891  $94,812  $76,891 
Total debt $7,079  $3,226  $3,220  $7,079  $3,220 


(1) The Company operates as three operating segments, Data Center, Client and Gaming, and Embedded segments.
 
The Data Center segment primarily includes Artificial Intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), AI Network Interface Cards (AI NICs), Field Programmable Gate Arrays (FPGAs) and adaptive System-on-Chip (SoC) products for data centers.
 
The Client and Gaming segment primarily includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services.
 
The Embedded segment primarily includes embedded CPUs, APUs, FPGAs, System on Modules (SOMs), and adaptive SoC products.
 
From time to time, the Company may also sell or license portions of its IP portfolio.  
 
All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangibles, employee stock-based compensation expense, and acquisition-related and other costs.


(2) Reconciliation of GAAP Net Income to Adjusted EBITDA


  Three Months Ended Nine Months Ended
(Millions) (Unaudited) September 26,
2026		 June 27,
2026		 September 27,
2025		 September 26,
2026		 September 27,
2025
GAAP net income $2,428  $2,297  $1,243  $6,108  $2,824 
Interest expense 62  37  37  136  95 
Other (income) expense, net 902  (598) (82) 139  (219)
Income tax provision (benefit) (555) 252  153  (65) (558)
Equity income in investee (5) (6) (10) (17) (25)
Stock-based compensation 523  503  419  1,513  1,152 
Depreciation and amortization 239  221  192  666  556 
Amortization of acquisition-related intangibles 534  544  562  1,629  1,697 
Acquisition-related and other costs 27  40  42  93  178 
Recovery of inventory loss at contract manufacturer —  —  (67) —  (67)
Loss contingency on legal matters 7  17  12  24  12 
Loss (income) from discontinued operations, net of tax —  8  (71) (3) (175)
Adjusted EBITDA $4,162  $3,315  $2,430  $10,223  $5,470 


The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other (income) expense, net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense, amortization of acquisition-related intangibles, acquisition-related and other costs, recovery of inventory loss at contract manufacturer, loss contingency on legal matters, and loss (income) from discontinued operations, net of tax. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of net income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.


(3) Reconciliation of GAAP Net Cash Provided by Operating Activities of Continuing Operations to Free Cash Flow


  Three Months Ended Nine Months Ended
(Millions except percentages) (Unaudited) September 26,
2026		 June 27,
2026		 September 27,
2025		 September 26,
2026		 September 27,
2025
GAAP net cash provided by operating activities of continuing operations $1,202  $2,366  $1,788  $6,523  $4,189 
Operating cash flow margin % from continuing operations  9% 21% 19% 19% 17%
Purchases of property and equipment (648) (808) (258) (1,845) (752)
Free cash flow $554  $1,558  $1,530  $4,678  $3,437 
Free cash flow margin % 4% 14% 17% 13% 14%


The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities of continuing operations for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company's net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.
 

Contact
Carolyn Guss
AMD Communications
corporate.pressinquiry@amd.com

Liz Stine
AMD Investor Relations
investor.relations@amd.com