AMD brought in $13.377 billion in revenue in the third quarter of 2026, up 45% from a year earlier, and expects around $17 billion for the fourth quarter, which would mean 66% year-over-year growth. The momentum again came from the data center segment, whose sales nearly doubled to $8.546 billion thanks to EPYC processors and the launch of the Instinct MI450 GPUs. The company reported earnings on November 3; the quarter closed on September 26.
AMD’s quarterly results in 20 seconds
- Record revenue of $13.377 billion, above the range AMD had given in August.
- The data center segment is up 97% and now accounts for almost two out of every three dollars.
- Gaming revenue fell 40%, and free cash flow dropped to $554 million.
- For the fourth quarter, AMD expects about $17 billion, with a margin of plus or minus 3%.
The figures beat what AMD itself had forecast. In August, when it reported second-quarter results, the company expected revenue of around $13 billion, plus or minus $300 million; the final result came in $77 million above the top of that range. Compared with the second quarter, revenue grew 16%. Over the first nine months of the year, revenue totals $35.166 billion, versus $24.369 billion in the same period of 2025.
Chair and CEO Lisa Su said in the statement that demand for Instinct and EPYC continued to strengthen and that she expects growth to accelerate in the fourth quarter as the company ramps up production of Helios racks and “Venice” processors. CFO Jean Hu noted that adjusted earnings per share grew 74%, faster than revenue.
Data Center Nearly Doubles While Gaming Slumps
The data center segment, which includes EPYC processors, Instinct accelerators, AI networking cards and server FPGAs, brought in $8.546 billion, up 97% from $4.341 billion a year earlier and 27% more than in the second quarter. It now accounts for 64% of AMD’s revenue. Its operating profit was $2.882 billion, and the investor presentation puts its operating margin at 34%, compared with 25% a year earlier. AMD does not break down how much comes from GPUs versus CPUs.
The client and gaming segment slipped 8% to $3.722 billion, with two opposite trends. PC (client) processors grew 7% to $2.949 billion, driven by Ryzen laptop chips. The gaming business, by contrast, fell 40% to $773 million, on lower sales of the semi-custom chips AMD designs for consoles and of graphics cards. Its operating profit dropped from $867 million to $573 million. The embedded segment rose 29% to $1.109 billion, driven by defense, automotive, communications and industrial demand.
Among the quarter’s milestones, AMD says Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are already running models on the first Helios racks, equipped with Instinct MI450 GPUs and sixth-generation EPYC CPUs. For Europe, it highlights that the EuroHPC joint undertaking has chosen Instinct MI430X GPUs and sixth-generation EPYC for the LUMI-AI supercomputer. The company also released ROCm 10, its AI software platform.
Profit Rises, But Cash Flow Tightens
Under U.S. accounting rules (GAAP), AMD earned $2.428 billion, up 95%, with diluted earnings per share of $1.46. Operating income grew 123% to $2.832 billion, and gross margin rose two points to 54%. On an adjusted (non-GAAP) basis, net income was $3.471 billion and earnings per share were $2.09, with a gross margin of 56%, the same as in the second quarter.
The gap between the two figures includes one striking item. AMD recorded a $1.097 billion loss from the change in fair value of warrants — rights to buy shares — that it has issued to “certain customers,” without naming them. That valuation depends mainly on AMD’s stock price: the more the shares rise, the larger the accounting charge. That loss pushed pre-tax income down to $1.868 billion, from $2.551 billion in the second quarter, and GAAP net income grew because AMD booked a $555 million tax benefit.
Cash tells a different story. Operating cash flow was $1.202 billion and free cash flow was $554 million, barely 4% of revenue, compared with $1.530 billion a year earlier and $1.558 billion in the second quarter. Inventory rose by almost $3 billion during the quarter, to $11.463 billion, and receivables increased by $1.928 billion, in line with preparing for a much larger fourth quarter, though AMD does not explain this in the release. Total debt rose to $7.079 billion after a $4.75 billion bond issuance in August, and cash plus short-term investments total $15.776 billion.
A $17 Billion Forecast and Two Pending Acquisitions
For the fourth quarter, AMD expects revenue of about $17 billion, plus or minus 3%, meaning a range of roughly $16.49 billion to $17.51 billion. The midpoint would mean 66% growth from a year earlier and 27% more than in the third quarter. The projected adjusted gross margin is 55%, a point lower than in the past two quarters. As with any forecast, the company warns that actual results may differ, citing export restrictions and the availability of components such as memory among the risks.
AMD also has two acquisitions underway that, according to its investor presentation, it expects to close before year-end, subject to the necessary approvals: World Labs, Fei-Fei Li’s model company, and Taalas, which specializes in inference silicon. Neither has closed yet. The jump from earlier in the year is notable: in the first quarter, AMD brought in $10.3 billion in revenue.
Frequently Asked Questions
How much revenue did AMD report in the third quarter of 2026?
AMD reported revenue of $13.377 billion in the third quarter of fiscal 2026, up 45% year over year and above the guidance range it had given in August.
What is AMD’s revenue guidance for the fourth quarter?
AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, implying a range of roughly $16.49 billion to $17.51 billion and 66% year-over-year growth at the midpoint.
How much did AMD’s data center segment grow?
The data center segment’s revenue nearly doubled, rising 97% year over year to $8.546 billion, driven by EPYC processors and the launch of Instinct MI450 GPUs, and it now makes up 64% of AMD’s total revenue.
Why did AMD’s free cash flow decline despite higher profit?
Free cash flow fell to $554 million, just 4% of revenue, because AMD built up inventory and receivables by several billion dollars to prepare for a much larger fourth quarter, even as GAAP net income rose 95% to $2.428 billion.
Sources:
- AMD, Third-Quarter 2026 Results (SEC)
- AMD, Third-Quarter 2026 Earnings Presentation (SEC)
- AMD, Second-Quarter 2026 Results and Guidance (SEC)
- Portal Financiero: AMD Revenue Jumps 45%, Raises Guidance to $17 Billion for Next Quarter (in Spanish)
This article is also available in Spanish: «AMD factura 13.377 millones en el tercer trimestre y prevé 17.000 en el cuarto», on revistacloud.com.
