Advanced Micro Devices reported third-quarter revenue of $13.4 billion and non-GAAP earnings of $2.09 per share, beating Wall Street expectations of $13.06 billion and $1.94 a share as data center sales nearly doubled.
Chief Executive Officer Lisa Su and Chief Financial Officer Jean Hu delivered the earnings report during a conference call on Tuesday, detailing how record demand for EPYC processors and Instinct accelerators propelled the company’s largest and most profitable quarter to date. According to Benzinga, total revenue increased 45% year-over-year. The market responded immediately, driving the stock up 3.65% in regular trading to $483.90 before adding another 7.54% in after-hours sessions to reach $520.40.
Data Center Revenue Surges as Earnings Beat Estimates
- Data center revenue surged 97% year-over-year to $8.5 billion, representing 64% of total quarterly sales.
- Non-GAAP earnings per share reached $2.09, beating consensus estimates by 7.73%.
- Management projected full-year 2027 revenue growth to exceed 80%, with server revenue expected to double.
Data Center Expansion Offsets Client and Gaming Slump
The financial results highlight an aggressive shift in business mix toward high-performance enterprise hardware. While data center operations generated $8.5 billion—64% of total sales, up from 47% a year ago—the Client and Gaming segments declined, with gaming revenue down 40% year-over-year on lower semi-custom sales.
Embedded revenue grew strongly, and gross margins expanded, showing that profits rose faster than costs as production scales for rack-scale systems and next-generation architecture.
| Metric | Q3 2026 Result | YoY Change |
|---|---|---|
| Total Revenue | $13.38 Billion | +45% |
| Data Center Revenue | $8.50 Billion | +97% |
| Non-GAAP EPS | $2.09 | +74% |
Supply Constraints and Forward Guidance for 2027
During the earnings call, executives emphasized strategic investments in R&D and supply chain partnerships to support anticipated growth in 2027 and beyond. Lisa Su noted that Turin is now the most widely deployed EPYC generation in the public cloud, while newer product ramps—including Venice EPYC processors and the MI450 series—are still early in their ramp but already contributing to growth.
Looking ahead to the fourth quarter, the company predicted 66% year-over-year revenue growth, driven by a 50% increase in the Data Center segment. For fiscal 2027, management projected total revenue growth exceeding 80%, with data center operations expected to account for more than 80% of total sales as enterprise adoption of artificial intelligence and agentic workloads accelerates.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
