Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $13.4 billion | up 45% YoY |
| EPS | $2.09 | up 74% YoY |
| Data Center Revenue | $8.5 billion | up 97% YoY |
| Client Revenue | $2.9 billion | up 7% YoY |
| Gaming Revenue | $773 million | down 40% YoY |
| Embedded Revenue | $1.1 billion | up 29% YoY |
Guidance and outlook
- Q4 revenue is expected to be approximately $17 billion, plus or minus 3%.
- Q4 non-GAAP gross margin is expected to be approximately 55%.
- Q4 non-GAAP operating expenses are expected to be approximately $3.75 billion.
- 2027 total revenue is expected to grow more than 80%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management reported record revenue and earnings, raised 2027 growth expectations, and highlighted strong momentum in data center AI and server segments. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
2027 Growth and Supply
Asked: Can you support 80% growth in 2027 with supply?
Answer: Demand is higher than supply, but AMD is working with partners to secure wafers, substrates, and packaging to meet the growth.
PC Market
Asked: What is the outlook for the PC market?
Answer: The company expects a double-digit percentage decline in PC unit shipments in 2027 and is managing inventory prudently.
Competition
Asked: How do customers choose between ASICs and AMD GPUs?
Answer: The decision is based on total cost of ownership, performance, and software flexibility, where AMD's Helios system is highly competitive.
Gross Margin
Asked: Can you maintain the 55% gross margin floor?
Answer: The data center mix, which will be more than 80% of revenue in 2027, will drive gross margin, though quarterly variations may occur.
What to watch before the next call
- The ramp of Venice, MI-450 series, and Helios products.
- The impact of the Taalas and World Labs acquisitions.
- Supply chain capacity for 2027 growth.
