Advanced Micro Devices Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.15%.
Did AMD Beat Earnings? Q4 2025 Results
Advanced Micro Devices closed out fiscal 2025 with a standout fourth quarter, posting revenue of $10.27 billion, up 34.1% year over year, and non-GAAP diluted EPS of $1.53, which cleared the $1.32 consensus estimate by nearly 16% and topped the $9.67 billion revenue forecast by 6.20%. The primary engine behind the quarter was the Data Center segment, which generated $5.38 billion, up 39% year over year, fueled by strong EPYC processor demand and continued ramp of Instinct GPUs. A notable tailwind came from approximately $390 million in MI308 GPU sales into China, alongside a $360 million release of previously reserved inventory charges tied to U.S. export restrictions, effects that lifted reported non-GAAP gross margin to 57% versus an underlying 55%. For the full year, AMD reported revenue of $34.64 billion and free cash flow of $5.52 billion, more than doubling the prior year's $2.40 billion. Looking ahead, AMD guided Q1 2026 revenue to approximately $9.80 billion, implying roughly 32% year-over-year growth, with non-GAAP gross margin expected at approximately 55%.
- Strong demand for AMD EPYC server processors
- Continued ramp of AMD Instinct GPU shipments for data center AI
- Record Client business revenue driven by Ryzen processor demand and market share gains
- Higher semi-custom revenue and strong Radeon GPU demand in Gaming
- Approximately $360 million release of previously reserved MI308 inventory charges
- Approximately $390 million in AMD Instinct MI308 revenue to China
“2025 was a defining year for AMD, with record revenue and earnings driven by strong execution and broad-based demand for our high-performance and AI platforms.”
AMD CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, AMD expects revenue of approximately $9.8 billion, plus or minus $300 million, including approximately $100 million of AMD Instinct MI308 sales to China. The mid-point represents year-over-year growth of approximately 32% and a sequential decline of approximately 5%. Non-GAAP gross margin is expected to be approximately 55%. Non-GAAP operating expenses are expected to be approximately $3.05 billion, with an effective tax rate of approximately 13% and diluted share count of approximately 1.65 billion shares.
AMD YoY Financials
AMD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.