AMD reported record revenue of $13.4 billion for the third quarter of 2026, a 45% increase from the same period a year earlier. The result, covering July through September, topped the $13.1 billion forecast from analysts surveyed by FactSet.
Net income rose 95% year over year to $2.4 billion, and diluted earnings per share increased to $1.46 from $0.75. On an adjusted basis, net income reached $3.5 billion, up 77%, while adjusted earnings per share climbed 74% to $2.09.
The data center business was the quarter’s strongest performer, with record revenue of $8.5 billion, up 97% from a year earlier. AMD said demand for EPYC processors and the launch of its Instinct MI450 GPUs helped drive the result, alongside increased sales of its artificial intelligence accelerators.
Results elsewhere were mixed. Revenue from the combined client and gaming segments fell 8% to $3.7 billion. PC revenue rose 7% to $2.9 billion, supported by notebook Ryzen processor sales, while gaming revenue dropped 40% to $773 million as sales of semi-custom chips and graphics products declined.
Embedded revenue increased 29% to $1.1 billion. AMD attributed the segment’s expansion to markets including aerospace and defense, automotive, communications and industry.
For the fourth quarter, AMD expects revenue of about $17 billion, with a margin of 3% above or below that estimate. The midpoint would represent growth of about 66% year over year and 27% from the previous quarter. The company also forecast an adjusted gross margin of approximately 55%.
CEO Lisa Su said demand for Instinct and EPYC products continues to strengthen. She added that AMD expects growth to accelerate in the fourth quarter as it increases production of its Helios and Venice platforms.
Sources: Olhar Digital.