AMD Beats as Q3 Revenue Jumps 45% to $13.38B on 97% Data Center Growth and Q4 Guide Tops $17B
Gross margin is expected to ease to about 55% as Helios and Venice production ramp; Client and Gaming fell 8% on a 40% drop in Gaming.
Advanced Micro Devices (AMD) reported third-quarter 2026 non-GAAP earnings of $2.09 per share on revenue of $13.38 billion, up 44.7% from a year earlier, ahead of the FactSet consensus of $1.95 and $13.1 billion. Data Center revenue hit a record $8.5 billion, up 97%. AMD guided fourth-quarter revenue to about $17 billion, plus or minus 3%, above the $16.29 billion consensus even at the low end of its range. It reported on Tuesday, Nov. 3.
Third-quarter results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $13,377M | $9,246M | +45%; +16% from Q2 |
| Non-GAAP gross margin | 56% | 54% | +2 pts; flat from Q2 |
| Non-GAAP operating income | $3,923M | $2,238M | +75% |
| Non-GAAP EPS | $2.09 | $1.20 | +74% |
| GAAP EPS | $1.46 | $0.75 | +95% |
| GAAP net income | $2,428M | $1,243M | +95% |
By our calculation, EPS beat the consensus by about 7.2% and revenue by about 2.1%, and non-GAAP operating margin was about 29.3%.
Segments
| Segment | Q3 revenue | Year over year |
|---|---|---|
| Data Center | $8.5B, a record | +97% |
| Client and Gaming | $3.7B | -8% |
| Client | $2.9B | +7% |
| Gaming | $773M | -40% |
| Embedded | $1.1B | +29% |
Data Center growth came from EPYC processors and the launch of the Instinct MI450 Series GPUs. Gaming fell on lower semi-custom and graphics revenue, and Embedded grew on aerospace and defense, automotive, communications and industrial demand. By our calculation, Data Center was about 64% of revenue.
Fourth-quarter outlook
| Item | Q4 guidance | Comparison |
|---|---|---|
| Revenue | About $17B, plus or minus 3% ($16.49B to $17.51B) | Consensus $16.29B |
| Non-GAAP gross margin | About 55% | 56% in Q3 |
By our calculation, the midpoint is about 4.4% above consensus and implies about 27% growth from Q3. The gross margin guide is about one point below Q3. CEO Lisa Su said demand for Instinct and EPYC products continued to strengthen and that growth should accelerate further in the fourth quarter as AMD scales Helios and Venice production.
Cash, debt and buybacks
- Cash. $7.4 billion in cash and equivalents plus $8.4 billion in short-term investments at quarter-end.
- Debt. Long-term debt rose to $7.1 billion from $2.3 billion at the end of 2025.
- Cash flow. Operating cash flow was $1.2 billion and capital spending $648 million, up from $258 million a year earlier.
- Buybacks. AMD made no open-market repurchases in the quarter, versus $89 million a year earlier, and spent $1.5 billion on tax withholding for employee equity.
What to watch
- Conference call. Management detail on MI450 and Helios shipments, customer commitments and how fast Venice ramps.
- Margins. Whether the one-point gross margin step-down in Q4 is a mix effect that fades.
- Gaming. When semi-custom declines bottom out.
- Customers. Helios systems are running at Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure, according to AMD.
- Related coverage. See our Week Ahead preview, Fabrinet and Lattice.
Sources: AMD's investor relations site and its third-quarter 2026 results release. Consensus figures come from FactSet and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
Readers also read
Week Ahead: Midterms, Apple and AMD Earnings and the Jobs Report Test a Shaken Market
EarningsFabrinet Beats as Fiscal Q1 Revenue Jumps 51% to $1.47B, Guides Above Consensus and Adds Buyback
EarningsLattice Revenue Surges 118% to a Record $291M and Q4 Guide Points to $325M-$345M on AI and AMI
MarketCatalyst is not a registered investment advisor and does not manage client assets. Content on this platform is provided for informational and educational purposes only. It is not investment advice, and MarketCatalyst is not a stock-picking or trade-alert service. Trading stocks and options involves risk, including the possible loss of principal. Consider your own goals, time horizon, and risk tolerance, and consult a qualified financial advisor before making any investment decision.