Advanced Micro Devices Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.73%.
Did AMD Beat Earnings? Q1 2026 Results
Advanced Micro Devices delivered a standout first quarter for fiscal 2026, posting revenue of $10.25 billion, up 37.9% year over year, and non-GAAP diluted EPS of $1.37, both clearing Wall Street expectations with conviction. The EPS figure beat the $1.29 consensus by 5.88%, while revenue came in $340 million ahead of the $9.91 billion estimate, a 3.41% positive surprise. The clear engine behind the outperformance was the Data Center segment, which generated $5.78 billion in revenue, up 57% year over year, as demand for EPYC server processors and Instinct GPU shipments accelerated on the back of AI infrastructure buildout, a theme echoing across the broader semiconductor landscape. Non-GAAP gross margin expanded to 55%, up 170 basis points year over year, reflecting favorable product mix tilted heavily toward higher-margin Data Center offerings. Looking ahead, AMD guided Q2 2026 revenue to approximately $11.20 billion, implying year-over-year growth of roughly 46%, with non-GAAP gross margin expected to widen further to approximately 56%.
- Strong demand for AMD EPYC processors and continued ramp of AMD Instinct GPU shipments driving Data Center segment growth
- Favorable product mix with higher Data Center revenue contribution driving gross margin expansion
- Strong demand for Ryzen processors and continued market share gains in Client business
- Solid demand for Radeon GPUs in Gaming business
- Demand strengthening across several end markets in Embedded segment
- Operating leverage as revenue scaled faster than operating expense growth
“We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth. We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators. Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand. Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”
AMD CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, AMD expects revenue of approximately $11.2 billion, plus or minus $300 million, representing year-over-year growth of approximately 46% and sequential growth of approximately 9%. Non-GAAP gross margin is expected to be approximately 56%. Non-GAAP operating expenses are expected to be approximately $3.3 billion. The company expects non-GAAP interest expense/other income (expense), net of $60 million, a non-GAAP effective tax rate of 13% of pre-tax income, and diluted share count of approximately 1.66 billion shares. Management expects server growth to accelerate meaningfully as supply scales to meet demand, with customer engagement around MI450 Series and Helios strengthening beyond initial expectations.
AMD YoY Financials
AMD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.