AMD closed a record third quarter with revenue of $13.4 billion, up 45 percent from a year earlier, as data center sales nearly doubled on demand for its EPYC server processors and Instinct AI chips.
What happened in the quarter
AMD reported third-quarter 2026 results on November 3 after the market close. Revenue of $13.38 billion came in above the high end of the company’s own guidance. GAAP earnings reached $1.46 per diluted share, nearly double the $0.75 posted a year earlier.
On an adjusted basis, earnings per share came in at $2.09, up 74 percent from $1.20. Net income on a GAAP basis totaled $2.43 billion, up 95 percent year over year. Chief Executive Officer Lisa Su summed up the quarter in one line: “We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year.”
Key numbers from the report
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $13.38 billion | $9.25 billion | Up 45 percent |
| GAAP diluted EPS | $1.46 | $0.75 | Up 95 percent |
| Adjusted diluted EPS | $2.09 | $1.20 | Up 74 percent |
| GAAP net income | $2.43 billion | $1.24 billion | Up 95 percent |
| Non-GAAP gross margin | 56 percent | 54 percent | Up 2 points |
| Data Center segment revenue | $8.5 billion | About $4.3 billion | Up 97 percent |
Data center demand drives the growth
The Data Center segment produced a record $8.5 billion in revenue, up 97 percent from a year ago. AMD credited strong demand for EPYC processors and the launch of its Instinct MI450 Series GPUs for AI workloads.
The rest of the business was mixed. Client and Gaming segment revenue came in at $3.7 billion, down 8 percent. Client processor sales rose 7 percent to $2.9 billion on strength in Ryzen mobile chips, while gaming revenue fell 40 percent to $773 million.
What to watch next
AMD guided fourth-quarter revenue to approximately $17 billion, plus or minus 3 percent. The midpoint represents roughly 66 percent growth from the same quarter last year and about 27 percent sequential growth. Management expects an adjusted gross margin near 55 percent.
Chief Financial Officer Jean Hu pointed to the momentum behind the number. “Our fourth-quarter outlook reflects accelerating revenue and earnings growth, driven by strong demand across our Data Center portfolio,” she said in the results release.
Three risks bear watching. Sales concentration in data center means any pause in AI infrastructure spending would hit results hard. Gaming revenue has declined for a year as console demand matures. And U.S. export rules on advanced chips sold into China remain a swing factor for the addressable market.
Bottom line
Data center now accounts for roughly 63 percent of company revenue, up from about 47 percent a year ago. AMD is now a data center company first, and its results increasingly swing with AI infrastructure spending. The stock remains a growth holding rather than an income play. Investors tracking the semiconductor sector should watch the MI450 ramp and fourth-quarter results early next year.
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