45% Year-on-Year Gain: AMD Reports Record Q3 Revenue as Data Centre Revenue Nearly Doubles!

AMD’s data centre revenue hit $8.546 billion. The record total, disclosed in the US chipmaker’s third-quarter 2026 results on Tuesday, represented growth of 97% year on year and 27% quarter on quarter. Data centres were the largest driver of the company’s overall growth. AMD attributed the performance mainly to increasing demand for EPYC server processors and the introduction of Instinct MI450 Series AI accelerators. Continued increases in AI infrastructure spending by major technology companies are accompanying AMD’s faster deployment of next-generation AI computing products.

The first AMD Helios rack-scale solutions are supporting AI models and workloads for Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure, among other customers. Instinct MI450 Series GPUs run alongside sixth-generation EPYC processors in these systems. For its OCI Compute E7 cloud instances, Oracle Cloud Infrastructure announced plans to use AMD’s sixth-generation EPYC processors. Google Cloud and Microsoft separately confirmed that storage-optimised cloud instances built on fifth-generation EPYC processors are generally available.

Third-quarter revenue from Client and Gaming together came to $3.722 billion, an 8% year-on-year decline. Within that total, increased Ryzen mobile processor sales chiefly accounted for Client revenue rising 7% year on year to $2.949 billion. Gaming, by comparison, recorded revenue of just $773 million. Its 40% year-on-year contraction largely stemmed from lower semi-custom chip and graphics product revenue. Embedded generated $1.109 billion in third-quarter revenue, a 29% year-on-year increase. Higher demand across aerospace and defence, automotive, communications and industrial end markets provided the main support.

Approximately $17 billion is AMD’s fourth-quarter revenue forecast, subject to a variation of plus or minus 3%. This sets an approximate range of $16.49 billion to $17.51 billion. Revenue at the guidance midpoint would be approximately 66% higher year on year and 27% higher quarter on quarter. The forecast signals that AMD expects an additional acceleration in revenue growth as year-end approaches. Its non-GAAP gross margin forecast for the fourth quarter is approximately 55%.

Describing the third quarter as a record period, AMD Chair and CEO Lisa Su said revenue had surpassed the upper end of the company’s previous guidance range. Data centre revenue was almost twice its year-earlier level. Demand for Instinct and EPYC products is still strengthening. Further growth acceleration is expected in the fourth quarter as AMD scales up production of Helios systems and next-generation processors codenamed “Venice”.

74% Adjusted EPS Growth: Market Insight

A 74% year-on-year gain in third-quarter adjusted earnings per share reflected operating leverage from the growing data centre business, AMD said. Demand remains strong across its data centre product range, as also reflected in the fourth-quarter outlook. Cash generation weakened, however: third-quarter free cash flow stood at $554 million, compared with $1.530 billion in the same period last year. At the third-quarter close, AMD’s cash, cash equivalents and short-term investments totalled $15.776 billion.