AMD (AMD.US) Q3 revenue grew 45% year-over-year, hitting a record high; data center business revenue nearly doubled.

AMD (AMD.US) Q3 revenue grew 45% year-over-year, hitting a record high; data center business revenue nearly doubled. U.S. chipmaker AMD (AMD.US) released its Q3 2026 financial results on Tuesday. Data showed that the company's Q3 revenue reached $13.377 billion, up 45% year-over-year and 16% quarter-over-quarter, setting a record high. GAAP net income reached $2.428 billion, up 95% year-over-year; GAAP diluted earnings per share were $1.46, higher than $0.75 in the prior-year period. On a non-GAAP basis, AMD's Q3 adjusted net income reached $3.471 billion, up 77% year-over-year; adjusted earnings per share were $2.09, up 74% year-over-year, higher than $1.20 in the prior-year period. In terms of profitability, the company's Q3 GAAP gross margin was 54%, up 2 percentage points from the prior-year period; non-GAAP gross margin was 56%, also up 2 percentage points year-over-year. Q3 GAAP operating income reached $2.832 billion, up 123% year-over-year, with operating margin rising to 21% from 14% in the prior-year period. Non-GAAP adjusted operating income reached $3.923 billion, up 75% year-over-year, with adjusted operating margin at 29%, up 5 percentage points from the prior-year period. Data center business revenue nearly doubled, AI chip demand remains strong By segment, AMD's Q3 data center business revenue reached a record $8.546 billion, up 97% year-over-year and 27% quarter-over-quarter, becoming the main driver of the company's overall performance growth. AMD said the strong performance of the data center business was mainly driven by growing demand for EPYC server processors and the launch of the Instinct MI450 series AI accelerators. As large technology companies continue to expand investment in artificial intelligence infrastructure, AMD is accelerating the deployment of its next-generation AI computing products. The company disclosed that customers including Anthropic, Meta, Microsoft Corporation, OpenAI and Oracle Corporation cloud infrastructure are running AI models and workloads on the first batch of AMD Helios rack-scale solutions. The system uses Instinct MI450 series GPUs and sixth-generation EPYC processors. Meanwhile, Oracle Corporation cloud infrastructure announced that its OCI Compute E7 cloud computing instances will adopt AMD's sixth-generation EPYC processors. Alphabet Inc. Class C cloud and Microsoft Corporation also announced that storage-optimized cloud instances based on fifth-generation EPYC processors have been officially launched. PC business maintains growth; gaming business revenue down 40% year-over-year AMD's Q3 client and gaming business combined revenue was $3.722 billion, down 8% year-over-year. Among them, client business revenue reached $2.949 billion, up 7% year-over-year, mainly driven by growth in Ryzen mobile processor sales. However, gaming business revenue was only $773 million, down 40% year-over-year, mainly due to lower revenue from semi-custom chips and graphics products. In the embedded business, Q3 revenue reached $1.109 billion, up 29% year-over-year, mainly benefiting from growing demand in end markets such as aerospace and defense, automotive, communications and industrial. Q4 revenue expected to reach $17 billion, up about 66% year-over-year Looking ahead to the fourth quarter, AMD expects revenue of approximately $17 billion, plus or minus 3%, corresponding to a range of approximately $16.49 billion to $17.51 billion. Based on the midpoint of the guidance, Q4 revenue is expected to grow about 66% year-over-year and about 27% quarter-over-quarter, implying the company expects revenue growth to further accelerate by year-end. AMD also expects Q4 non-GAAP gross margin of approximately 55%. AMD Chair and CEO Lisa Su said the company delivered record-breaking Q3 results, with revenue exceeding the upper end of its prior guidance range and data center business revenue nearly doubling year-over-year. Su noted that demand for Instinct and EPYC products continues to strengthen, and with the ramp of the Helios system and the new-generation processors codenamed "Venice," the company expects growth to further accelerate in the fourth quarter. AMD Chief Financial Officer Jean Hu said Q3 adjusted earnings per share grew 74% year-over-year, reflecting the operating leverage from the scaling of the data center business. The company's Q4 outlook also reflects strong demand for its data center product portfolio. In addition, AMD's Q3 free cash flow was $554 million, lower than $1.53 billion in the prior-year period. As of the end of the third quarter, the company held cash, cash equivalents and short-term investments totaling $15.776 billion.