Advanced Micro Devices reported quarterly revenue of $10.3 billion, up 34% from a year and above analyst consensus estimates.
On a non-GAAP basis, net income was a record $2.5 billion, up 42% from a year ago, with earnings per share at $1.53, up 40% from a year ago.
In after-hours trading, AMD’s stock is down 6.7%. Bloomberg said investors may have been disappointed that it wasn’t bigger growth given the magnitude of the AI revolution.
Q4 results included roughly $390 million in revenue from Instinct MI308 sales to China, which was not included in AMD’s previous Q4 financial guidance. Q4 gross margin also included the reversal of roughly $360 million of inventory charges AMD took earlier in the year.
Excluding the inventory reserve reversal and MI308 sales, Q4 revenue would have been $9.8 billion and non-GAAP gross margin would have been about 55%, above analyst consensus estimates.
“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,” said Lisa Su, AMD CEO, in a statement. “We are entering 2026 with strong momentum across our business, led by accelerating adoption of our high-performance EPYC and Ryzen CPUs and the rapid scaling of our data center AI franchise.”
“Our record fourth quarter and full-year results demonstrate AMD’s ability to deliver profitable growth at scale,” said Jean Hu, AMD CFO, in a statement. “We achieved record non-GAAP operating income and free cash flow, while increasing our strategic investments to support long-term growth across our high-performance and adaptive computing product portfolio.”
For the segments, AMD saw record data center segment revenue of $5.4 billion, up 39% from a year ago driven by strong demand for Epyc processors and the continued ramp of Instinct graphics processing unit (GPU) shipments, AMD said.
Client and Gaming segment revenue was $3.9 billion, up 37% from a year ago. AMD also had record client revenue of $3.1 billion, up 34% from a year ago, driven by strong demand for leadership Ryzen processors and continued market share gains.
Gaming itself saw revenue of $843 million, up 50% from a year ago, driven by higher semi-custom revenue and strong Radeon GPU demand. And embedded segment revenue was $950 million, up 3% from a year ago as demand strengthened across several end markets.
2025 Full Year Results
Revenue was a record $34.6 billion, an increase of 34% y/y driven by growth in data center and client and gaming segments.
The year saw record data center segment revenue of $16.6 billion, up 32% from a year ago. That reflected growth across Epyc CPUs and Instinct GPUs.
AMD also had record client and gaming segment revenue of $14.6 billion, up 51% from a year ago. The company had record client revenue of $10.6 billion, up 51% driven by continued revenue share gains and a richer product mix.
The company had gaming revenue of $3.9 billion, up 51% from a year ago amid improved semi-custom sales and strong Radeon GPU demand. The embedded segment revenue of $3.5 billion, down 3% from a year ago, reflecting the impact of customer inventory level adjustments earlier in the year.
AMD said non-GAAP gross margin was 52%, down 1% point as improved product mix was more than offset by net inventory and related charges. Non-GAAP net income was a record $6.8B, an increase of 26% from a year ago. And non-GAAP EPS was a record $4.17, an increase of 26%.
AMD guidance statements
Q1’26 revenue is expected to be approximately $9.8 billion, plus or minus $300 million, including approximately $100 million of MI308 sales to China. And non-GAAP gross margin to be approximately 55%.
In the analyst call, Su said, “2025 was a defining year for AMD, with record revenue, net income, and free cash flow driven by broad-based demand for our high-performance computing and AI products. We ended the year with significant momentum, with every part of our business performing very well.”
She added, “We saw demand accelerate across the data center, PC, gaming, and embedded markets, launched the broadest set of leadership products in our history, gained significant server and PC processor share and rapidly scaled our data center AI business as Instinct and ROCm adoption increased with cloud, enterprise, and AI customers.”
In cloud, hyperscaler demand was very strong as North American customers expanded
deployments. EPYC-powered public cloud offerings grew significantly in the quarter, with AWS, Google, and others launching more than 230 new AMD instances. Hyperscalers launched more than 500 AMD-based instances in 2025, increasing the number of EPYC cloud instances more than 50 percent year-over-year to nearly 1,600.
In the enterprise, Su said AMD is seeing a meaningful shift in Epyc adoption driven by leadership performance, expanded platform availability, broad software enablement and increased go-to-market programs.
The leading server providers now offer more than 3,000 solutions powered by 4th and 5th Gen Epyc CPUs that are optimized for all major enterprise workloads.
As a result, the number of large businesses deploying EPYC on-prem more than doubled in 2025, and we exited the year with record server sell-through.
“Looking ahead, server CPU demand remains very strong. Hyperscalers are expanding their infrastructure to meet growing demand for cloud services and AI, while enterprises are modernizing their data centers to ensure they have the right compute required to enable new AI workflows,” Su said. “Against this backdrop, Epyc has become the processor of choice for the modern data center, delivering leadership performance, efficiency, and TCO.”
The company’s next-generation Venice CPU will extend AMD’s leadership across various metrics, Su said. It is launching later this year. And eight of the top ten AI companies use Instinct to power production workloads across a growing range of use cases.
Inflationary pressures from memory and other things could cause the PC total available market fall during 2026, but Su said she believes AMD can grow its PC chip businesses.
Client and Gaming Segment
Segment revenue increased 37 percent year-over-year to $3.9 billion.
In client, su said the PC processor business performed exceptionally well. Revenue increased 34% year-over-year to a record $3.1 billion driven by increased demand for multiple generations of Ryzen desktop and mobile CPUs.
Desktop CPU sales set a record for the fourth consecutive quarter. Ryzen CPUs topped the
bestseller lists at major global retailers and e-tailers throughout the holiday period, with strong demand across all price points in every region driving record desktop channel sell-out. In mobile, strong demand for AMD-powered notebooks drove record Ryzen PC sell-through in the quarter. That momentum extended into commercial PCs, where Ryzen adoption accelerated as the company established a new, long-term growth engine for our client business.
Semi-custom sales increased year-over-year and declined sequentially as expected. For 2026, Su said expect semi-custom SoC annual revenue to decline by a significant double digit percentage as “we enter the seventh year of what has been a very strong console cycle.”
Su made a rare comment on gaming chip customers. She said, “From a product standpoint, Valve is on-track to begin shipping its AMD-powered Steam Machine
early this year, and development of Microsoft’s next-gen Xbox featuring an AMD semi-custom SoC is progressing well to support a launch in 2027.”
Also on gaming, Su said, “Gaming GPU revenue also increased year-over-year, with higher channel sell-out driven by demand throughout the holiday sales period for our latest generation Radeon RX 9000 series GPUs. We also launched FSR 4 Redstone in the quarter, our most advanced AI-powered upscaling technology, delivering higher image quality and smoother frame rates for gamers.”
Regarding AI, Su was confident. “AMD is well positioned to capture that growth, with highly differentiated products, a proven execution engine, deep customer partnerships, and significant operational scale,” she said.
And she added, “And as AI reshapes the compute landscape, we have the breadth of solutions and partnerships required for end-to-end leadership: from Helios in the cloud for at-scale training and inference to an expanded Instinct portfolio for sovereign, supercomputing, and enterprise AI deployment.”
And she said, “At the same time, demand for Epyc CPUs is surging as agentic and emerging AI workloads require high-performance CPUs to power head nodes and run parallel tasks alongside GPUs.”