AMD achieves record revenue in Q3, surpassing estimates
Key Points
- Revenue: $9.25B (up 36% YoY, up 20% QoQ)
- GAAP EPS: $0.75
- Non-GAAP EPS: $1.20
- Gross Margin: 52% GAAP / 54% non-GAAP
- Operating Income: $1.3B GAAP / $2.2B non-GAAP
- Free Cash Flow: $1.53B (record high)
- Guidance: Q4 revenue expected at ~$9.6B ± $300M, implying +25% YoY; non-GAAP gross margin ~54.5%.
No China MI308 GPU revenue included.
Quarter Highlights
- Data Center: $4.3B (+22% YoY) from strong demand for 5th-Gen EPYC CPUs and Instinct MI350 GPUs.
- Client & Gaming: $4.0B (+73% YoY) with record Ryzen CPU sales and 181% surge in gaming GPU/semi-custom demand.
- Embedded: $857M (-8% YoY).
- Record free cash flow and margin recovery following last quarter’s export-related charge.
AI and Strategic Deals
AMD’s quarter centered on rapid AI infrastructure expansion:
- OpenAI: to deploy 6 GW of AMD GPUs, starting with 1 GW MI450 rollout in 2H26.
- Oracle: launching AI supercluster using AMD’s new Helios rack with MI450 GPUs and EPYC “Venice” CPUs.
- Cisco & G42: large-scale AI cluster in UAE using MI355X GPUs.
- IBM & Zyphra: multi-year AI infrastructure deal using MI350X GPUs.
- Cohere, Vultr, and DigitalOcean: expanding AMD GPU adoption for enterprise and cloud AI workloads.
- U.S. DOE: announced two new AMD-powered AI supercomputers, Lux AI and Discovery.
- Tech Mahindra: deploying AMD Instinct GPUs and EPYC CPUs for enterprise AI via Cloud BlazeTech.
CEO Statement
“We delivered an outstanding quarter, with record revenue and profitability reflecting broad-based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators,” said Dr. Lisa Su, Chair and CEO.
“Our strong fourth-quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.”
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY | Q2 2025 | QoQ |
|---|---|---|---|---|---|
| Revenue | $9.25 B | $6.82 B | +36% | $7.69 B | +20% |
| GAAP EPS | $0.75 | $0.47 | +60% | $0.54 | +39% |
| Non-GAAP EPS | $1.20 | $0.92 | +30% | $0.48 | +150% |
| Gross Margin | 52% | 50% | +2 pts | 40% | +12 pts |
| Operating Income (GAAP) | $1.27 B | $724 M | +75% | -$134 M | — |
Capital Return
- Repurchased $89M of stock during Q3.
- Cash, equivalents, and short-term investments totaled $7.24B.
About AMD
For over 55 years, AMD has developed high-performance computing and graphics products used globally across consumer, enterprise, and scientific markets.
Key Takeaways
- AI momentum accelerated sharply with multi-billion-dollar partnerships across hyperscalers and enterprises.
- Data Center now anchors AMD’s growth, supported by strong MI300-series demand.
- Q4 guide remains robust, indicating continued AI and CPU strength.
- AMD maintains margin discipline while scaling investments in AI and next-gen compute infrastructure.