AMD closed 2025 with a new revenue milestone, with data centers as the main driver. The American company announced that the fourth quarter reached $10.27 billion in revenue, a 34% increase year-over-year, describing it as a record quarter.
In terms of profitability, AMD reported a gross margin of 54% for the quarter, with $1.75 billion in operating profit and $1.51 billion in net profit. Diluted earnings per share stood at $0.92.
Data center drives performance (and AI is now part of the story)
The Data Center segment was the largest: $5.38 billion in the quarter, with a 39% year-over-year growth. AMD attributes this progress to demand for EPYC processors and increased shipments of Instinct GPUs.
Meanwhile, the Client and Gaming area totaled $3.94 billion (+37% YoY), with client business (Ryzen) being the dominant part of this segment. The Embedded segment contributed $950 million (+3%).
Full year: $34.64 billion and 34% growth
For the full 2025, AMD reported record revenues of $34.64 billion, also a 34% increase compared to the previous year. The net income for the year was $4.34 billion (GAAP), with diluted earnings per share of $2.65.
The company also emphasized its “adjusted” (non-GAAP) figures, reporting $6.83 billion in net income and $4.17 in diluted EPS.
Impact of export restrictions and the MI308 case
One of the most sensitive points in the report was the mention of charges and reserve reversals related to export controls on Instinct MI308 products. AMD indicated that 2025 results included approximately $440 million in inventory-related charges and write-downs related to this issue, and that in the fourth quarter there was an approximate release of $360 million of previous reserves.
Guidance for 2026: a strong Q1, but with sequential normalization
Looking ahead to the first quarter of 2026, AMD projected revenues around $9.8 billion, with a ±$300 million range, and a non-GAAP gross margin near 55%.
The stock outlook
In the market, AMD was trading around $242.11 per share as of today, reflecting investors’ expectations for the company’s ability to sustain growth in data centers and AI.
Frequently Asked Questions
Which segment currently contributes the most revenue to AMD?
In Q4 2025, Data Center was the largest, with $5.38 billion.
What grew more in the quarter: data center or gaming/client?
Data center grew +39% YoY, while the client+gaming segment increased +37%.
What guidance did AMD provide for Q1 2026?
Revenues around $9.8 billion (±$300 million) and non-GAAP gross margin of approximately 55%.
Why are inventory charges related to MI308 mentioned?
AMD explained charges and adjustments linked to export controls on Instinct MI308, including annual net charges and a reserve reversal in Q4.