AMD reports record quarter as data center business nearly doubles

Revenue and profit surged

AMD published its financial results for the third quarter of 2026 on November 3. The company's quarterly revenue was $13.377 billion, up 45 percent from $9.246 billion a year earlier and 16 percent above the $11.536 billion recorded in the previous quarter.

Gross profit rose to $7.210 billion, with a gross margin of 54 percent. Operating income reached $2.832 billion, an increase of 123 percent year over year. Net income was $2.428 billion, compared with $1.243 billion in the same period a year earlier. Diluted earnings per share were $1.46.

On a non-GAAP basis, gross margin was 56 percent, operating income was $3.923 billion, net income was $3.471 billion and diluted earnings per share were $2.09. Jean Hu, AMD's chief financial officer, said quarterly revenue increased 45 percent, while non-GAAP earnings per share rose 74 percent.

Data center products drove growth

The data center business generated record revenue of $8.5 billion, representing 97 percent year-over-year growth. AMD attributed the result to demand for EPYC processors and the launch of the Instinct MI450 series graphics processors.

Revenue from the Client and Gaming segment was $3.7 billion, down 8 percent from a year earlier. Within that figure, the client business generated $2.9 billion in revenue, up 7 percent, supported by sales of Ryzen mobile processors. Gaming revenue declined to $773 million, a 40 percent drop, mainly because of lower semi-custom and graphics revenue.

The Embedded business generated $1.1 billion in revenue, up 29 percent year over year. Growth was led by expansion in the aerospace and defense, automotive, communications and industrial markets.

Helios, ROCm 10 and new acquisition agreements

According to AMD, Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are already running models and workloads on the first AMD Helios rack systems based on Instinct MI450 GPUs and sixth-generation EPYC processors. HPE announced that Vultr will deploy the first AMD Helios by HPE systems.

The company also introduced the AMD Helion reference architecture, which provides an open and flexible foundation for building rack-scale agentic systems. AMD said the release of ROCm 10 brings an AI-focused development environment, updated libraries, compilers, frameworks, tools and model support.

AMD announced agreements to acquire World Labs and Taalas. World Labs could provide model research expertise, while Taalas could bring chip technology specialized for inference. According to the announcement, the deals are intended to expand AMD's systems and infrastructure portfolio.

AMD expects $17 billion in revenue next quarter

AMD expects approximately $17 billion in revenue in the fourth quarter of 2026, with a variance of plus or minus 3 percent. The midpoint of the forecast represents year-over-year growth of approximately 66 percent and an increase of about 27 percent from the previous quarter. The company expects a non-GAAP gross margin of approximately 55 percent.

Lisa Su, AMD's chair and chief executive officer, said growth could accelerate further in the fourth quarter as the company ramps up production of Helios and Venice. AMD said the updated forecast is based on its current expectations and that actual results could differ materially because of market conditions.

For users and AMD customers, the announcement primarily signals a growing range of data center accelerators, processors and related software. The company has also expanded the availability of the Ryzen AI Halo platform and Threadripper Halo Station for locally run models, while the data center business remained the main driver of quarterly growth.