AMD rose about 5% after beating first-quarter revenue and adjusted earnings estimates

Advanced Micro Devices (AMD) rose about 5% in late trading Tuesday after the chip company beat Wall Street’s first-quarter targets and gave a stronger sales forecast for the next quarter.

AMD reported $10.25 billion in quarterly revenue, above the $9.89 billion expected by LSEG. Adjusted earnings came in at $1.37 per share, beating the $1.29 estimate.

For the first quarter, AMD posted $10.3 billion in revenue, 53% gross margin, $1.5 billion in operating income, $1.4 billion in net income, and $0.84 in diluted earnings per share under GAAP. On a non-GAAP basis, the company reported 55% gross margin, $2.5 billion in operating income, $2.3 billion in net income, and $1.37 in diluted EPS.

AMD uses data center demand to lift quarterly sales and profit

Dr. Lisa Su, chair and CEO of AMD, said demand is getting stronger as inferencing and agentic AI increase the need for high-performance CPUs and accelerators. 

Lisa also said server growth should pick up as supply expands, while customer interest in the MI450 Series and Helios has strengthened beyond early company expectations.

GAAP revenue increased 38% from $7.438 billion in Q1 2025 and was almost unchanged from $10.270 billion in Q4 2025. Gross profit reached $5.416 billion, up 45% from last year, but down 3% from the prior quarter.

AMD’s gross margin came in at 53%, compared with 50% a year earlier and 54% in Q4. Operating expenses were $3.940 billion, up 34% year over year and 3% quarter over quarter.

Operating income climbed to $1.476 billion, up 83% from $806 million last year, but lower than $1.752 billion in the prior quarter. Operating margin was 14%, versus 11% a year earlier and 17% in Q4.

Net income nearly doubled to $1.383 billion, up 95% from $709 million, while diluted EPS rose to $0.84 from $0.44. Compared with Q4, net income fell 8%, and diluted EPS fell 9%.

AMD’s non-GAAP revenue used the same $10.253 billion figure. Gross profit was $5.685 billion, up 42% year over year and down 3% sequentially. Gross margin was 55%, up 1 percentage point from last year and down 2 points from Q4.

Operating expenses reached $3.145 billion, up 42% from last year and 5% from the prior quarter. Operating income was $2.540 billion, up 43% year over year. Operating margin reached 25%. Net income was $2.265 billion, up 45%, while adjusted EPS rose 43% from $0.96 and fell 10% from $1.53 in Q4.

AMD signs AI and cloud deals while guiding for $11.2 billion in Q2 revenue

AMD’s Data Center business brought in $5.8 billion, up 57% from last year, helped by demand for EPYC processors and more Instinct GPU shipments. Client and Gaming revenue reached $3.6 billion, up 23%. Client revenue was $2.9 billion, up 26%, helped by Ryzen demand and share gains. 

AMD’s gaming revenue was $720 million, up 11%, as Radeon GPU sales helped offset weaker semi-custom revenue. Embedded revenue came in at $873 million, up 6%, with better demand across several markets.

Meta Platforms (META) and AMD plan to deploy up to 6 gigawatts of AMD Instinct GPUs. The first 1 gigawatt will use a custom MI450-based GPU. Meta will also be a lead customer for sixth-generation EPYC CPUs, codenamed Venice and Verano.

Amazon (AMZN) AWS, Alphabet (GOOGL) Google Cloud, Microsoft (MSFT) Azure, and Tencent (TCEHY) announced new or expanded fifth-generation EPYC-powered cloud instances. Those include Google Cloud H4D VMs for high-performance computing and Azure instances for general-purpose, memory-optimized, and compute-optimized workloads.

AMD Instinct MI355X also posted MLPerf results across the full test suite, with top results in several categories. The company introduced EPYC 8005 server CPUs for telecom and edge systems, with a focus on performance per watt and per dollar.

For PCs, AMD added Ryzen AI PRO 400 Series processors for enterprise desktops with Copilot+ features. It also announced the Ryzen 9950X3D2 Dual Edition processor for creators and developers, using dual stacks of 3D V-Cache technology.

For embedded and adaptive chips, the company introduced Ryzen AI Embedded P100 Series processors for industrial and edge AI, plus Kintex UltraScale+ Gen 2 FPGAs for industrial, imaging, and broadcast uses.

For Q2 2026, AMD expects about $11.2 billion in revenue, plus or minus $300 million, with roughly 46% year-over-year growth, about 9% sequential growth, and a non-GAAP gross margin near 56%.

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