Key Highlights

  • Third quarter Revenue rose 45% to a record USD 13.4 billion, and Data Center revenue grew 97% to USD 8.5 billion on EPYC processors and the launch of Instinct MI450 GPUs.
  • Advanced Micro Devices (NASDAQ:AMD) reported GAAP diluted EPS of USD 1.46 and non-GAAP diluted EPS of USD 2.09, up 74% from USD 1.20, with non-GAAP gross Margin at 56%.
  • Fourth quarter revenue is guided to about USD 17 billion, plus or minus 3%, implying roughly 66% year-over-year and 27% sequential growth at the midpoint.
  • Gaming revenue fell 40% to USD 773 million, which held Client and Gaming segment revenue to USD 3.7 billion, down 8% from a year earlier.

Data Center Nearly Doubles in a USD 13.4 Billion Quarter

Advanced Micro Devices (NASDAQ:AMD) reported third quarter 2026 results on November 3, 2026, with revenue of USD 13.377 billion against USD 9.246 billion a year earlier and USD 11.536 billion in the second quarter. Revenue exceeded the high end of company guidance. Data Center revenue of USD 8.5 billion rose 97% on Demand for EPYC processors and the launch of Instinct MI450 series GPUs. Embedded revenue grew 29% to USD 1.1 billion, led by aerospace and defense, automotive, communications and industrial markets. Client revenue rose 7% to USD 2.9 billion on Ryzen mobile processors.

GAAP Profit Absorbs a USD 1.1 Billion Warrant Charge

GAAP Operating Income more than doubled to USD 2.832 billion, a 21% margin, and GAAP Net Income rose 95% to USD 2.428 billion, or USD 1.46 per share. Non-GAAP net income of USD 3.471 billion, or USD 2.09 per share, excludes stock-based compensation of USD 523 million, acquisition-related intangibles amortization of USD 534 million and a USD 1,097 million change in the Fair Value of a warrant liability. The company says that warrant remeasurement, tied to warrants issued to certain customers, is driven by changes in its stock price and valuation assumptions. The reconciliation also carries an income tax adjustment of USD 1,073 million that partly offsets these add-backs.

The USD 17 Billion Guide, Customer Programs and Execution Risks

The fourth quarter outlook of about USD 17 billion, plus or minus 3%, spans roughly USD 16.5 billion to USD 17.5 billion (own arithmetic), with non-GAAP gross margin near 55%, slightly below the 56% just reported. Management links acceleration to production of Helios rack-scale systems and 6th generation EPYC processors codenamed Venice. Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running workloads on early Helios systems, and the company agreed to acquire World Labs and Taalas, with no terms in the release. Risks include export rules and tariffs, loss of a significant customer, memory and substrate supply, Manufacturing yields and a cyclical semiconductor market. The call was set for 5:00 p.m. ET on November 3.

Where Things Stand

Whether it can reach USD 17 billion depends on converting Helios and Venice from early deployments to Volume production, because the guide implies about USD 3.6 billion of added quarterly revenue (own arithmetic from the midpoint). Advanced Micro Devices (NASDAQ:AMD) has a strong record for the quarter, with revenue above the top of guidance and Operating Leverage lifting non-GAAP EPS 74%. Gaming and the softer gross margin outlook are the offsets, and Supply of memory and advanced packaging remains a named risk. The next checkpoints are the fourth quarter report and any disclosure on the pending acquisitions.