● Covered by 3 sources · 3 reportsMedium impact3 neutral
AMD Reports Record Q3 2026 Revenue Driven by Data Center Growth
Key points
- AMD's Q3 2026 revenue reached a record $13.4 billion.
- Data center business generated $8.5 billion in Q3 2026 revenue.
- AMD forecasts data center revenue to exceed 80% of total revenue post-2027.
- Gaming business revenue dropped 40% to $773 million in Q3 2026.
- AMD expects Q4 revenue to reach approximately $17 billion.
- AMD's Q3 2026 gross margin was 54%.
- AMD's Q3 2026 net income increased by 95% to $2.43 billion.
- AMD's Q3 2026 diluted earnings per share reached $1.46.
- AMD's Q3 2026 revenue was up from $9.25 billion in Q3 2025.
- AMD's Q3 2026 revenue was up from $11.54 billion in Q2 2026.
- Data center business sales were up 97% from $4.34 billion in Q3 2025.
- Data center business sales were up 27% sequentially.
- AMD's Q3 2026 revenue increased 45% year-over-year.
- Intel's Q4 guidance places revenue estimates between $15 billion and $16 billion.
- Client business posted $2.95 billion in revenue, up 7%.
Record Quarterly Performance
AMD announced its most profitable quarter in history for Q3 2026, with total revenue reaching $13.4 billion. The company anticipates setting another revenue record in the next quarter, projecting $17 billion. This growth is primarily attributed to its data center segment.
Data Center Dominance
The data center business was the primary driver of AMD's Q3 2026 success, contributing $8.5 billion in revenue. This segment accounted for approximately 63% of AMD's net quarterly revenue. AMD expects its data center revenue to grow over 80% in 2027 and eventually comprise more than 80% of the company's total revenue beyond 2027.
Gaming Segment Decline
While data center revenue surged, AMD's gaming business experienced a 40% year-over-year decline, falling to $773 million. This downturn is linked to price increases for PCs, game consoles, and other electronics, caused by shortages of RAM and other components. These shortages are driven by high demand from AI data centers.
Market Outlook and Component Shortages
AMD CEO Lisa Su acknowledged that rising component prices are impacting overall system pricing, particularly affecting consumer markets. The company anticipates a 'down year' for 2027 in the consumer segment due to these market conditions. Industry forecasts suggest component shortages may persist, with Intel not expecting improvement next year and SK Hynix predicting shortages until 2030.
Updates
- AMD expects Q4 revenue to reach approximately $17 billion.
- AMD's Q3 2026 gross margin was 54%.
- AMD's Q3 2026 net income increased by 95% to $2.43 billion.
- AMD's Q3 2026 diluted earnings per share reached $1.46.
- AMD's Q3 2026 revenue was up from $9.25 billion in Q3 2025.
- AMD's Q3 2026 revenue was up from $11.54 billion in Q2 2026.
- Data center business sales were up 97% from $4.34 billion in Q3 2025.
- Data center business sales were up 27% sequentially.
- AMD's Q3 2026 revenue increased 45% year-over-year.
- Intel's Q4 guidance places revenue estimates between $15 billion and $16 billion.
- Client business posted $2.95 billion in revenue, up 7%.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
AMD announced record third-quarter revenues of $13.4 billion, a 45% year-over-year increase, primarily due to a near-doubling of its data center business. The company's gaming segment experienced a significant decline, while its Q4 revenue projections indicate it could surpass Intel's revenue for the first time.
AMD reported its highest quarterly revenue ever in Q3, driven by strong demand for Epyc data center processors and Instinct AI accelerators. The company projects Q4 revenue to reach approximately $17 billion, which would exceed Intel's revenue for the first time in history.
AMD achieved its largest and most profitable quarter in Q3 2026, reporting $13.4 billion in revenue, with its data center business contributing $8.5 billion. The company projects continued growth, expecting data center revenue to account for over 80% of total revenue beyond 2027, while its gaming business declined by 40% due to component shortages and price hikes.