Advanced Micro Devices (AMD) Q3 2026 Earnings Report

The call was strongly positive, led by record revenue and earnings, 97% data center growth, expanding EPYC and Instinct adoption, major Helios and Venice ramps, accelerating Embedded growth, and raised expectations for more than 80% company revenue growth in 2027. The primary challenges were supply constraints, higher memory and component costs, a projected double-digit PC market decline, a 40% gaming revenue decline, working capital investment, and warrant-related noncash charges. Highlights significantly outweighed the lowlights.

For the fourth quarter of fiscal 2026, AMD expects revenue to be approximately $17 billion, plus or minus 3%, representing approximately 66% year-over-year revenue growth and approximately 27% sequential growth, with data center growth of approximately 50%, a decline in our client and the gaming segment of greater than 20% and double-digit growth in Embedded; non-GAAP gross margin is expected to be approximately 55%, non-GAAP operating expenses approximately $3.75 billion, non-GAAP net interest and other expense a gain of approximately $4 million, the non-GAAP effective tax rate 13% and diluted share count approximately 1.67 billion shares. For 2027, AMD expects revenue to grow more than 80%, data center segment revenue to more than double from 2025 and exceed 80% of total revenue, server revenue to double year-over-year, data center AI revenue to grow even faster than we projected 90 days ago and significantly more than double, PC market unit shipments to decline by a double-digit percentage, embedded revenue to deliver strong double-digit annual revenue growth, and OpEx to grow less than half of the top line revenue growth rate.