AMD Q3 Sets Record at $13.4 Billion as Data Center Sales Nearly Double

How it unfolded

The results cover the quarter ended September 26, 2026, were released after the close on Nov 3 in US Eastern time, and were discussed on a call at 5 p.m. ET the same day. The announcement attributed the quarter to demand for EPYC server processors and the launch of Instinct MI450 Series GPUs, and pointed to expanding production of Helios rack-scale systems and Venice processors.

By segment, data center revenue was $8.546 billion, up 97% year over year and about 64% of total revenue; client and gaming revenue was $3.7 billion, down 8%, with client at $2.9 billion, up 7%, and gaming at $773 million, down 40%; embedded revenue was $1.1 billion, up 29%, led by growth in aerospace and defense, automotive, communications and industrial end markets.

On profit, GAAP net income was $2.428 billion and diluted earnings per share were $1.46, up 95% year over year, with gross margin of 54%; non-GAAP net income was $3.471 billion and diluted earnings per share were $2.09, up 74%, with gross margin of 56% and operating income of $3.923 billion. The GAAP figures include a non-cash charge of about $1.1 billion tied to changes in the fair value of a warrant liability for warrants issued to certain customers, shown in the release's reconciliation table.

The quarter also brought two acquisition agreements: World Labs, bringing model research expertise, and Taalas, adding specialized inference silicon technology. The release said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on the first Helios rack-scale systems; the company also released ROCm 10 and the Helion reference architecture, and said HPE will deploy the first Helios systems from HPE.

What was said

AMD chair and CEO Lisa Su said in the announcement that quarterly revenue exceeded the high end of guidance, data center sales nearly doubled year over year, demand for Instinct and EPYC products continued to strengthen, and growth is expected to accelerate further in the fourth quarter.

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

Chief financial officer Jean Hu said third-quarter revenue grew 45% year over year and non-GAAP earnings per share grew 74%, and the fourth-quarter outlook reflects strong demand across the data center portfolio.

According to reports, Su said on the earnings call that the company expects 2027 revenue growth of more than 80%, with data center revenue above 80% of total revenue and server revenue roughly doubling.

On market reaction, The Motley Fool reported AMD shares rose about 6.5% in after-hours trading. According to reports, the LSEG consensus was revenue of $13.09 billion and non-GAAP earnings per share of $1.95, with Q4 revenue consensus of about $16.2 billion, and both reported revenue and Q4 guidance came in above those consensus figures.

Key facts

1. Revenue: $13.377 billion, up 45% year over year and 16% quarter over quarter, above the $12.7 billion to $13.3 billion guidance range given in August
2. Data Center: $8.546 billion, up 97% year over year, with operating income of $2.882 billion
3. GAAP: Net income of $2.428 billion, diluted earnings per share of $1.46, up 95% year over year, gross margin of 54%
4. Non-GAAP: Net income of $3.471 billion, diluted earnings per share of $2.09, up 74% year over year, gross margin of 56%, operating income of $3.923 billion
5. Client and Gaming: $3.7 billion, down 8% year over year; client $2.9 billion, up 7%; gaming $773 million, down 40%
6. Embedded: $1.1 billion, up 29% year over year
7. Q4 guidance: Revenue of about $17 billion, plus or minus 3%, with the midpoint up about 66% year over year and about 27% sequentially, and non-GAAP gross margin of about 55%
8. Free cash flow and inventory: According to The Motley Fool, free cash flow was $554 million; inventory rose by about $3 billion as AMD builds Helios rack systems and Venice chips for the fourth-quarter ramp