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SEC filingRevenue surged 38% YoY to $10.3B, gross margin expanded 300bps to 53% on favorable Data Center mix, driving operating income up 83%.
For the three months ended March 28, 2026, AMD reported net revenue of $10.3 billion, a 38% increase from $7.4 billion in the prior year period. The growth was broad-based, led by the Data Center segment. Gross profit rose to $5.4 billion from $3.7 billion, with gross margin improving 300 basis points to 53%, driven by a favorable product mix as higher-margin Data Center revenue became a larger share of total revenue. Operating income nearly doubled to $1.5 billion from $806 million, reflecting higher gross profit partially offset by increased operating expenses. Net income jumped 97% to $1.4 billion from $709 million. Earnings per share were not explicitly disclosed, but the sharp net income increase implies strong EPS growth.
Data Center remained the primary growth engine, with revenue surging 57% to $5.8 billion, fueled by strong demand for 5th Gen AMD EPYC processors and AMD Instinct MI350 series GPUs. Operating income rose to $1.6 billion, yielding a segment margin of 27.7%.
Client and Gaming combined revenue increased 23% to $3.6 billion. Client revenue grew 26% to $2.9 billion, driven by a 25% increase in unit shipments and a 1% rise in average selling price for Ryzen mobile processors. Gaming revenue rose 11% to $720 million, supported by higher Radeon GPU demand partially offset by lower semi-custom revenue. Segment operating income was $575 million, up from $496 million.
Embedded revenue grew 6% to $873 million, with operating income of $338 million, as demand strengthened across several end markets.
All Other operating loss widened to $1.0 billion from $950 million, primarily due to higher stock-based compensation ($487 million vs. $364 million) partly offset by lower amortization of acquisition-related intangibles ($551 million vs. $567 million).
AMD highlighted its strategic focus on AI and long-term growth, with R&D spending up 39% to $2.4 billion, reflecting increased headcount supporting its AI roadmap. The company signed a landmark agreement with Meta Platforms, under which Meta will deploy up to 6 gigawatts of AMD GPUs, beginning with custom Instinct MI450-based GPUs and 6th Gen EPYC CPUs. As part of the deal, AMD issued Meta a warrant to purchase up to 160 million shares at $0.01 per share, vesting upon GPU purchase milestones and stock price targets. Management expects international sales to remain significant, with 74% of revenue from international customers in the quarter. Cash flow from operations was robust at $3.0 billion, and the company maintained a strong liquidity position with $12.3 billion in cash and investments. While no explicit revenue guidance was provided, the strong operational momentum and strategic customer wins suggest continued growth trajectory.
Net cash from operating activities reached $2,955M, a 215% increase from $939M in the prior-year quarter, significantly outpacing net income of $1,383M due to non-cash charges and working capital improvements. Key non-cash items included $551M in amortization of acquisition-related intangibles, $487M in stock-based compensation, and $206M in depreciation. Working capital provided a net inflow of $456M, driven by a $280M reduction in receivables and a $713M increase in accrued liabilities, partially offset by inventory build ($125M) and other outflows.
Capital expenditures totaled $389M, up 84% YoY, reflecting ongoing investments in manufacturing and infrastructure. Net investing outflows were $2,565M, primarily due to $2,545M in short-term investment purchases. Financing activities used $350M, including $221M in share repurchases and $134M in tax withholding settlements. No dividends were paid.
The company ended the quarter with $5,596M in cash, cash equivalents, and restricted cash, a slight increase of $40M from the prior period. Operating cash flow comfortably covered capex and shareholder returns, with a coverage ratio of 3.9x.