Q3 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $12.2 billion | up 34% |
| Non-GAAP EPS | $1.11 | record |
| Operating Profit | $2 billion | 2.5x more than a year ago |
| Free Cash Flow | $958 million | highest ever for a third quarter |
| Networking Revenue | $2.9 billion | up 10% |
Guidance and outlook
- We expect Q4 revenue to be between $13.9 billion and $14.8 billion.
- We expect EPS between $1.20 and $1.30, and GAAP EPS between $1.12 and $1.22.
- We are raising our FY '26 EPS guidance range to $3.75 to $3.85.
- We now expect FY '26 free cash flow of at least $3.75 billion.
- For fiscal 2027, we expect consolidated revenues to grow 13% to 17%.
How management sounded
Confident (+8 on our -10 to +10 scale). Management emphasized record-breaking financial performance, a record backlog, and raised guidance for both fiscal 2026 and 2027. Management sounded more upbeat than on 92% 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
Demand Sustainability
Asked: Katherine Campagna (Goldman Sachs) asked what gives confidence that demand is a sustained cycle rather than a pull-forward.
Answer: Antonio Neri stated that demand is exceptionally strong across AI cloud build-outs and enterprise agentic AI deployments, with pipeline multiples of backlog.
Networking Revenue vs. Orders
Asked: Amit Daryanani (Evercore) asked why networking revenue growth is lower than order growth.
Answer: Antonio Neri explained that supply constraints limited revenue conversion, but the company has doubled purchase commitments to align supply with demand.
Server Growth Drivers
Asked: Aaron Rakers (Wells Fargo) asked about the mix of pricing versus unit growth in servers.
Answer: Antonio Neri noted that while supply constraints limited unit growth in 2026, the company expects units to strengthen in Q4 as supply availability improves.
Helios Opportunity
Asked: Joseph Cardoso (JPMorgan) asked why the AMD Helios opportunity was excluded from the 2027 framework.
Answer: Antonio Neri explained that the company wants to wait for the schedule to firm up before including the massive potential opportunity in the guidance.
What to watch before the next call
- Supply chain constraints, particularly regarding wafer capacity and memory availability, which continue to impact revenue conversion.
- The timing of the AMD Helios platform deployment and its potential contribution to future networking revenue.
- The integration progress of Juniper Networks and the realization of synergy targets.
