Advanced Micro Devices Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.05%.
Did AMD Beat Earnings? Q2 2026 Results
Advanced Micro Devices posted a standout second quarter for fiscal 2026, with revenue of $11.54 billion climbing 50.1% year over year and non-GAAP diluted EPS of $1.66 beating the $1.61 consensus estimate by 3.06%, as the company's Data Center segment more than doubled to $6.72 billion and now accounts for 58% of total revenue. The explosive growth in Instinct GPU and EPYC server CPU demand drove Data Center operating income to $2.10 billion, swinging sharply from a $155 million loss a year ago when an $800 million inventory charge tied to U.S. export controls on Instinct MI308 products weighed on results. Non-GAAP gross margin expanded to 56% from 43% a year ago, reflecting the richer Data Center mix, while revenue came in 2.04% ahead of the $11.31 billion analyst consensus. AMD shares rose roughly 5% following the report, with analyst price targets moving higher on the AI accelerator demand outlook. Looking ahead, AMD guided Q3 2026 revenue to approximately $13 billion, implying 41% year-over-year growth, with management expecting Data Center momentum to accelerate through the second half of the year.
- Data Center revenue more than doubled year-over-year driven by strong demand for EPYC processors and Instinct GPUs
- Data Center segment represented 58% of company revenue
- Client business revenue up 23% year-over-year driven by strong Ryzen processor demand
- Embedded segment demand strengthened across multiple end markets
- Non-GAAP gross margin expansion to 56% driven by higher Data Center revenue mix
- Non-GAAP operating margin expanded to 27% from 12% year-over-year
“We delivered an excellent quarter, with record revenue and profitability as Data Center revenue more than doubled year-over-year.”
AMD CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2026, AMD expects revenue of approximately $13 billion, plus or minus $300 million, representing year-over-year growth of approximately 41% and a sequential increase of approximately 13%. Non-GAAP gross margin is expected to be approximately 56%. Non-GAAP operating expenses are expected to be approximately $3.65 billion. Other income (expense) net of interest expense is expected to be approximately $55 million. Non-GAAP effective tax rate is expected to be 13% of pre-tax income. Diluted share count is expected to be approximately 1.66 billion shares. Management expects Data Center sales to accelerate in the second half of 2026, driving stronger overall revenue growth and continued earnings expansion.
AMD YoY Financials
AMD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.