AMD's revenue jumps 45% as Data Center sales nearly double
AMD earned $2.09 per share on an adjusted basis in the quarter ended September 26, 6.1% above analysts' forecast, and revenue rose 45% to a record $13.4 billion. Data Center sales grew 97% on demand for its EPYC processors and the launch of its Instinct MI450 GPUs.
The results
Q3 2026
+6.1%
Adj. earnings
+1.2%
Revenue
+1.0%
The stock
Adjusted earnings per share
Expected $1.97
$2.09
Revenue
Expected $13.22B
$13.38B
What the company expects
For the fourth quarter of 2026, AMD expects revenue of about $17 billion, plus or minus 3%. At the midpoint, that would be about 66% more than a year earlier and about 27% more than the third quarter. It expects a non-GAAP gross margin, the share of sales left after production costs excluding some items, of about 55%.
Results for Q3 2026, released on November 3, after the close. Expected: average of analysts' forecasts. Earnings per share under GAAP accounting rules: $1.46.
Who holds it
AI analysis
Nov 3
What drove the quarter
Data Center sales nearly doubled
AMD's Data Center segment, its biggest business, brought in a record $8.5 billion, up 97% from a year earlier. The release credits strong demand for its EPYC server processors and the launch of its Instinct MI450 Series GPUs.
Profit grew faster than sales
Non-GAAP earnings per share, which leave out costs AMD treats as exceptional, rose 74% to $2.09 while revenue grew 45%. Chief financial officer Jean Hu said the gap shows the business model's operating leverage as Data Center drives scale.
What it changes
A forecast above analysts' estimate
AMD expects about $17 billion in fourth-quarter revenue, which at the midpoint would be about 66% growth from a year earlier. CNBC reported that the forecast beat the average analyst estimate compiled by LSEG.
Margin forecast slips a little
AMD expects a non-GAAP gross margin of about 55% in the fourth quarter, below the 56% it reported for the third. CNBC reported that this falls slightly below the 55.3% analysts expected, according to StreetAccount.
What it does not say
A high price leaves little room for error
The stock rose 1% on November 4, one session that says little about the company over time. Before the results, AMD traded at 118.5 times its trailing profit, against a median of 33.7 for semiconductor stocks, so any disappointment could weigh heavily.
Analysis written by an AI from public data. It is not investment advice.