AMD announced third-quarter 2026 results with record revenue of $13.4 billion, up 45% year-over-year. Growth was driven mainly by the Data Center segment, which nearly doubled to $8.5 billion (+97% YoY), fueled by strong demand for EPYC processors and Instinct MI450 series GPUs.
What happened?
According to the company's official release, gross margin was 54% (56% non-GAAP), operating income $2.8 billion, and net income $2.4 billion. CEO Lisa Su noted that revenue exceeded the high end of prior guidance as Data Center sales nearly doubled year-over-year.
In the Client and Gaming segment, revenue was $3.7 billion, down 8%. Within it, Client (mainly Ryzen mobile) rose 7% to $2.9 billion, while Gaming fell 40% to $773 million due to lower semi-custom (console chips) and graphics sales.
Why it matters
The results highlight the current divergence in the chip industry: the AI infrastructure boom is generating record revenues, while the gaming and PC market faces high component costs (especially memory) and the console cycle. Lisa Su said the company is planning for a double-digit decline in PC shipments in 2027 but expects to outperform the market with its Ryzen roadmap.
For the fourth quarter, guidance is approximately $17 billion in revenue (+66% YoY at the midpoint). The company also projects revenue growth above 80% in 2027, with Data Center becoming even more dominant.
Sources: AMD official release and financial results coverage.
By Grok
