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SEC filingRevenue grew 36% to $9.2B, driven by strong Client, Gaming, and Data Center demand; gross margin expanded 200bps to 52%.
For the three months ended September 27, 2025, AMD reported net revenue of $9.246 billion, up 36% from $6.819 billion in the prior year period. The increase was driven by strong demand across Client, Gaming, and Data Center segments. Gross profit rose to $4.780 billion from $3.419 billion, yielding a gross margin of 52%, up 200 basis points from 50% in the prior year, primarily due to favorable product mix. Operating income more than doubled to $1.270 billion from $724 million, as higher gross profit more than offset increased operating expenses. Net income was $1.200 billion compared to $771 million, a 56% increase.
For the nine-month period, revenue reached $24.369 billion, up 34% from $18.127 billion. Gross margin declined to 47% from 49%, largely due to $800 million in inventory and related charges from U.S. export restrictions on MI308 GPU products. Operating income was $1.942 billion versus $1.029 billion, reflecting the margin pressure. Net income from continuing operations was $2.8 billion (adjusted for discontinued operations and tax benefits).
Data Center: Revenue grew 22% to $4.341 billion, driven by strong demand for 5th Gen EPYC processors and Instinct MI350 GPUs. Operating income increased to $1.074 billion from $1.041 billion, despite higher expenses. For the nine-month period, operating income fell to $1.851 billion from $2.325 billion due to the $800 million MI308 charge.
Client and Gaming: Combined segment revenue surged 73% to $4.048 billion. Client revenue rose 46% to $2.750 billion, with ASP up 38% and unit shipments up 4%. Gaming revenue skyrocketed 181% to $1.298 billion, driven by semi-custom SoCs and Radeon GPUs. Operating income was $867 million versus $288 million.
Embedded: Revenue declined 8% to $857 million, with mixed end-market demand. Operating income decreased to $283 million from $372 million.
All Other: Operating loss was $954 million, primarily from amortization of acquisition-related intangibles ($562 million) and stock-based compensation ($419 million).
Management highlighted that international sales remain significant (64% of revenue in Q3). The company expects liquidity from cash, investments, and operating cash flows, along with its $3.0 billion credit facility, to be sufficient for the next 12 months. AMD noted continued investment in AI strategy, including the integration of ZT Systems (acquired in March 2025) and the subsequent sale of the ZT Manufacturing Business in October 2025. The company also disclosed a warrant issued to OpenAI that could dilute shares upon vesting. Export restrictions remain a risk, with potential further impacts on China revenue. No specific forward revenue or margin guidance was provided.