10-Q · May 5, 2026
AMD reported strong Q1 2026 results with net revenue of $10.25 billion, up 38% year-over-year, and earnings per share (EPS) of $1.37, marking an increase from the prior year's EPS of $0.84. This growth was primarily…
Earnings analysis · 10-Q
AMD earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
AMD delivered a strong Q2, with revenue of $11.536 billion rising 50% year over year and GAAP gross margin expanding to 54% from 40%. Data Center was the principal driver, with revenue up 107% to $6.718 billion, while…
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AMD delivered a strong Q2, with revenue of $11.536 billion rising 50% year over year and GAAP gross margin expanding to 54% from 40%. Data Center was the principal driver, with revenue up 107% to $6.718 billion, while Client and Embedded also grew; Gaming remained a material weak point, down 31%. Liquidity is robust at $13.1 billion, but the filing highlights substantial supply, cloud and data-center commitments, plus continuing China export-control and tariff uncertainty.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.38
What stood out
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Revenue and EPS accelerated sharply
Q2 revenue was $11.536 billion, up 50% year over year from $7.685 billion and 12.5% sequentially from $10.25 billion in Q1 2026. GAAP diluted EPS was $1.38, versus $0.84 in Q1 2026 and $0.54 in Q2 2025.
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Margins recovered materially
Gross margin reached 54%, up 14 percentage points from 40% a year earlier and 1.2 points from 52.8% in Q1. Operating income was $1.990 billion, versus a $134 million operating loss last year, producing a 17.3% operating margin versus a 1.7% loss margin.
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Data Center drove the upside
Data Center revenue more than doubled to $6.718 billion from $3.240 billion, while segment operating income improved to $2.103 billion from a $155 million loss. Management cited demand for EPYC processors and Instinct MI350 Series GPUs.
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Client and Embedded broadened growth
Client revenue grew 23% to $3.062 billion, supported by a 34% increase in client-processor unit shipments, while Embedded revenue rose 19% to $977 million as end-market demand strengthened.
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Liquidity and operating cash flow strengthened
Cash, cash equivalents and short-term investments increased to $13.1 billion from $10.6 billion at year-end. Six-month operating cash flow was $5.321 billion, more than double $2.401 billion in the prior-year continuing operations period.
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Balance sheet retains net-cash flexibility
The company has $5.0 billion available under its revolver and no commercial paper or revolver borrowings outstanding, while aggregate short- and long-term debt remained $3.3 billion.
What to watch
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Gaming weakness pressured segment profit
Gaming revenue declined 31% year over year to $779 million from $1.122 billion, primarily due to lower semi-custom revenue. Client and Gaming operating income fell to $582 million from $767 million despite total segment revenue rising 6%.
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China export restrictions remain a major overhang
Export-control exposure remains material: AMD recorded approximately $440 million of net inventory and related charges in 2025 tied to MI308 restrictions. MI325 shipments to China face a required U.S. inspection process and a 25% import tariff, and China import approval remains uncertain.
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Large supply and infrastructure commitments
AMD reported approximately $30.3 billion of unconditional commitments as of June 27, including $17.4 billion due during the remainder of fiscal 2026. Subsequent commitments include up to $5.0 billion of investments through 2028 and $9.5 billion of data-center lease payments over terms up to 16 years.
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Receivables and supply prepayments increased
Working-capital investment increased: accounts receivable rose $966 million and prepaid expenses and other assets rose $1.0 billion in the first half, largely from higher revenue and supply-agreement prepayments. These were partly offset by a $2.2 billion increase in accounts payable.
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AI investment is driving operating-cost growth
R&D increased 33% to $2.528 billion and marketing, general and administrative expense increased 41% to $1.401 billion. Management attributed the increases to AI-related headcount and go-to-market activities, which could limit future operating leverage if revenue growth slows.
Management's outlook
The 10-Q does not provide a quantitative revenue or EPS outlook. MD&A says Helios rack-scale platforms are expected to start shipping in the second half of fiscal 2026 and management believes liquidity resources will be sufficient for operations, capital expenditures, commitments and strategic activities over the next 12 months and beyond.
Earlier filings 4
10-Q · August 6, 2025
AMD reported net revenue of $7,685 million for the quarter (a 32% increase vs prior year) with strong Client & Gaming and Data Center demand, but gross margin compressed to 40% (from 49% a year earlier) largely due to…
10-Q · July 31, 2024
AMD reported net revenue of $5,835 million for the quarter (a 9% increase vs. prior year) driven by a steep Data Center ramp and recovery in Client; gross margin expanded to 49% from 46% and GAAP operating income was…
10-Q · May 1, 2024
AMD reported a revenue of $5.47 billion for Q1 2024, an increase of 2% year-over-year and a solid beat of consensus estimates by approximately $370 million. Gross margin improved to 46.8%, up from 44.1% in Q1 2023,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.