Tech
AMD Posts Record Third-Quarter Revenue as Data Centre Sales Nearly Double
AMD's third-quarter revenue rose 45% to a record $13.38 billion, beating estimates as data centre revenue surged 97% to $8.55 billion, and the chipmaker guided to about $17 billion in fourth-quarter revenue.
Photo: NERSC / Wikimedia Commons (CC0). Photo shows server racks in a data centre, not AMD's chips.
Advanced Micro Devices reported record third-quarter 2026 revenue of $13.38 billion, up 44.7% from a year earlier and above analyst expectations of about $13.09 billion. Non-GAAP earnings came in at $2.09 per share, up 74.2% year over year and ahead of the $1.95 consensus estimate.
The data centre division drove the beat. Data centre revenue surged 96.9% to $8.55 billion, about 64% of total revenue, on record EPYC processor and Instinct GPU sales. AMD said server sales more than doubled as hyperscalers expanded EPYC capacity for cloud services and agentic AI workloads, and that Anthropic, Meta, Microsoft, OpenAI and Oracle began Helios rack-scale deployments during the quarter.
Not every segment kept pace. Client and Gaming revenue fell 8.1% to $3.72 billion: client revenue rose 7% to $2.9 billion on Ryzen mobile demand, but gaming revenue plunged 40% to $773 million on lower semi-custom sales and graphics demand. The Embedded segment grew 29.4% to $1.11 billion, helped by aerospace and defence, automotive, communications and industrial customers.
Profitability improved alongside sales. Non-GAAP gross profit rose 49.9% to $7.48 billion, with gross margin expanding to 56%, while operating income surged 75.3% to $3.92 billion. AMD shares rose in after-hours trading following the report.
For the fourth quarter, AMD expects revenue of approximately $17 billion, plus or minus 3%, with data centre revenue projected to grow about 50% sequentially. The company also said it expects 2027 revenue to grow more than 80%, supported by server revenue doubling and faster data centre AI growth.
Source: Zacks
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