AMD reports record $13.4 billion Q3 revenue driven by data center growth

AMD reported third-quarter revenues of $13.4 billion on Tuesday, representing a 45 percent increase year over year. The company's data center segment grew 97 percent to reach $8.5 billion, while the gaming segment saw revenue fall 40 percent to $773 million.

Data Center and AI Growth

The data center segment accounted for 64 percent of AMD's overall revenue, up from 47 percent a year ago. AMD attributed the data center growth to demand for its EPYC enterprise server CPUs and the launch of the Instinct MI450 series GPUs.

AMD Chair and CEO Lisa Su stated on the earnings call that "Adoption is just starting, and we expect demand to grow sharply as agents are deployed more broadly and take on more complex work."

AMD also noted that several customers, including Anthropic, Meta, Microsoft, OpenAI, and Oracle, have begun using AMD Helios racks in their data centers. Additionally, AMD announced that Windows-based systems running on its Ryzen AI Halo platform, known as Project Zenith, will be "coming soon."

Financial Performance and Guidance

AMD provided the following financial guidance and results:

• Q3 Revenue: $13.4 billion (up 45% year over year).
• Q4 Revenue Guidance: Approximately $17 billion, plus or minus 3%.
• 2027 Outlook: CEO Lisa Su stated, "Based on our current visibility, we now expect revenue to grow more than 80% in 2027."
• Free Cash Flow: Dropped to $554 million in Q3, which was approximately 4% of revenue.

AMD reported a $1.1 billion charge related to warrants granted to OpenAI and Meta. According to TIKR.com, these warrants allow each company to buy up to 160 million AMD shares at a penny apiece as they roll out up to 6 gigawatts of AMD chips.

Segment Performance

While data center sales surged, other segments showed mixed results:

• Client Business: Reported $2.95 billion in revenue, up 7 percent year over year, driven by Ryzen mobile chip sales.
• Embedded Segment: Reported $1.1 billion in revenue, up 29 percent, attributed to gains in aerospace, defense, automotive, communications, and industrial markets.
• Gaming Segment: Revenue fell 40 percent to $773 million. CEO Lisa Su attributed this to "lower semi-custom sales as expected at this stage of the console cycle."

Why it matters

AMD's record revenue was driven by the acceleration of its data center business, which is increasingly tied to AI infrastructure demand. While the company faces a decline in gaming revenue and a buildup of inventory to $11.5 billion, its high-growth data center segment now represents the majority of its total revenue.

---

Sources

• arstechnica.com: AMD's record quarter: Data center business doubles, while gaming craters - Ars Technica
• tikr.com: AMD’s Data Center Sales Nearly Doubled, but Its Own Stock Rally Just Cost It $1.1 Billion | TIKR.com
• theglobeandmail.com: AMD shares jump as AI-driven data-centre strength fuels growth outlook - The Globe and Mail
• cnbc.com: AMD (AMD) Q3 earnings report 2026

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.