10-Q · August 4, 2026
AMD delivered a strong Q2, with revenue of $11.536 billion rising 50% year over year and GAAP gross margin expanding to 54% from 40%. Data Center was the principal driver, with revenue up 107% to $6.718 billion, while…
Earnings analysis · 10-Q
AMD earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
AMD delivered a strong Q3 2026, with revenue of $13.377 billion and EPS of $2.09, up approximately 15.9% and 51% sequentially, respectively, while Data Center revenue grew 97% year over year to $8.546 billion.…
Read full summary
AMD delivered a strong Q3 2026, with revenue of $13.377 billion and EPS of $2.09, up approximately 15.9% and 51% sequentially, respectively, while Data Center revenue grew 97% year over year to $8.546 billion. Management's Q4 outlook implies revenue of $16.49 billion to $17.51 billion and approximately 55% non-GAAP gross margin. The principal risks are concentrated in export controls and the 25% MI325 China tariff, memory and supply constraints, and increasingly material data-center infrastructure commitments.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.09
- Segment
- Data Center: $8.546 billion, up 97% year over year.
What stood out
-
Record revenue accelerated
Revenue was $13.377 billion, up approximately 15.9% from $11.54 billion in 2026 Q2 and approximately 44.6% from $9.25 billion in 2025 Q3. Revenue also exceeded the $13.097 billion consensus estimate by approximately 2.1%.
-
EPS materially beat estimates
Diluted EPS was $2.09, versus $1.38 in the prior quarter and $0.75 a year earlier, representing sequential growth of approximately 51% and year-over-year growth of approximately 179%. EPS exceeded the $1.89 estimate by approximately 10.6%.
-
Data Center drove growth
Data Center revenue reached $8.546 billion, increasing 97% year over year and representing approximately 64% of total revenue of $13.377 billion.
-
Strong Q4 revenue outlook
The company expects Q4 2026 revenue of approximately $17.0 billion, or $16.49 billion to $17.51 billion, with approximately 55% non-GAAP gross margin.
-
Strategic investment base expanded
Long-term investment exposure increased: marketable equity securities were $1.3 billion at September 26, 2026 versus $0.2 billion at December 27, 2025, while non-marketable equity and other securities were $1.9 billion versus $1.1 billion.
-
Liquidity facility increased
The company replaced its prior $3.0 billion revolving facility with a five-year unsecured revolving credit facility of $5.0 billion in May 2026, improving committed liquidity capacity by $2.0 billion.
What to watch
-
Export controls and China exposure
Export controls remain a material headwind: MI325 products shipped to China under licenses are subject to a 25% tariff upon U.S. importation for inspection, and MI308 sales depend on obtaining licenses and customer demand.
-
Memory shortage may pressure margins
The filing identifies an industry-wide memory shortage and higher memory prices, which could increase production costs and pressure gross margin. The risk is amplified by long-term purchase commitments and prepayments, although the filing does not quantify the related obligations.
-
Data-center commitments add downside
AMD has entered capacity, lease, guarantee and cloud-compute commitments supporting customer data-center infrastructure. The company states it may be required to make payments without receiving anticipated benefits if customers or partners cannot perform; its revolving credit facility has $5.0 billion of aggregate principal capacity and includes cross-default provisions.
-
Geopolitical supply-chain exposure
International sales represented 57% of net revenue for the three months ended September 26, 2026, increasing sensitivity to geopolitical tensions, tariffs, export restrictions and supply-chain disruptions, including risks involving Taiwan-based manufacturing.
-
Investment portfolio volatility
Marketable and non-marketable investments totaled $3.2 billion at September 26, 2026, including $1.3 billion of marketable securities and $1.9 billion of non-marketable securities, exposing results to equity-market volatility and impairment risk.
-
Warrant dilution and earnings volatility
Customer warrants exercisable for up to a combined 320 million shares could dilute shareholders, and changes in AMD's stock price can cause substantial non-cash GAAP earnings gains or losses.
Management's outlook
The 10-Q does not establish a prior quantitative outlook or provide numeric EPS guidance. The accompanying outlook calls for Q4 2026 revenue of approximately $17.0 billion, plus or minus 3%, and approximately 55% non-GAAP gross margin; revenue range is $16.49 billion to $17.51 billion.
Earlier filings 4
10-Q · May 5, 2026
AMD reported strong Q1 2026 results with net revenue of $10.25 billion, up 38% year-over-year, and earnings per share (EPS) of $1.37, marking an increase from the prior year's EPS of $0.84. This growth was primarily…
10-Q · August 6, 2025
AMD reported net revenue of $7,685 million for the quarter (a 32% increase vs prior year) with strong Client & Gaming and Data Center demand, but gross margin compressed to 40% (from 49% a year earlier) largely due to…
10-Q · July 31, 2024
AMD reported net revenue of $5,835 million for the quarter (a 9% increase vs. prior year) driven by a steep Data Center ramp and recovery in Client; gross margin expanded to 49% from 46% and GAAP operating income was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.