01—Abstract
Summary
Summary of the 10-K filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices, Inc. (AMD) reported strong financial performance for the fiscal year ended December 27, 2025, with net revenue increasing by 34% to $34.6 billiona.
This growth was predominantly driven by robust demand in the Data Center and Client and Gaming segments. The Data Center segment saw a 32%b revenue increase, propelled by sales of AMD EPYC processors and Instinct MI350 Series GPUs, while the Client and Gaming segment experienced a significant 51% revenue jump, attributed to strong demand for Ryzen processors, semi-custom game consoles, and Radeon gaming GPUs. Despite these gains, the Embedded segment experienced a slight revenue decrease of 3%.
The company's AI strategy remains a key focus, with significant progress noted in accelerating Data Center growth through the deployment of AI accelerator products. Strategic acquisitions, including ZT Systems, have further bolstered AMD's capabilities in delivering end-to-end AI solutions and scaling AI infrastructure.
AMD also highlighted a major product purchase agreement with OpenAI for AMD GPUs and continued investment in its ROCm software platform to support the AI ecosystem. The company's financial position strengthened, with cash, cash equivalents, and short-term investments nearly doubling to $10.6 billion, while total debt increased to $3.3 billionc.
02—Key points
Key Highlights
- Net revenue surged by 34% to $34.6 billion in fiscal year 2025, driven by strong Data Center and Client and Gaming segment performance.
- Data Center revenue grew 32% to $16.6 billion, fueled by AMD EPYC processors and Instinct MI350 Series GPUs, reflecting robust AI demand.
- Client and Gaming revenue increased by a significant 51% to $14.6 billion, driven by Ryzen processors, gaming GPUs, and semi-custom SoCs.
- The company acquired ZT Systems to enhance its end-to-end AI solutions and infrastructure capabilities.
- AMD entered into a substantial product purchase agreement with OpenAI for AMD GPUs, demonstrating a key strategic partnership in the AI sector.
- Cash, cash equivalents, and short-term investments significantly increased to $10.6 billion, providing strong liquidity.
- Research and development expenses rose by 25% to $8.1 billion, reflecting continued investment in AI and product innovation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Advanced Micro Devices Inc kept $0.13.
- Revenue$34.64B100.0%
- Cost of revenue−$17.49B50.5%
- Gross profit$17.15B49.5%
- Operating costs−$13.46B38.9%
- Operating income$3.69B10.7%
- Interest, other & tax$641.0M1.9%
- Net income$4.33B12.5%
Where FY2025 revenue went
$34.64B- Cost of revenue: $17.49B, 50% of revenue
- R&D: $8.09B, 23% of revenue
- Operating income: $3.69B, 11% of revenue
- SG&A: $4.14B, 12% of revenue
- Other operating costs: $1.22B, 3.5% of revenue
Kept 11% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 4, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $34.64B$25.79B | +34.3% |
| Cost of Revenue | $17.49B$13.06B | +33.9% |
| Gross Profit | $17.15B$12.72B | +34.8% |
| R&D Expenses | $8.09B$6.46B | +25.3% |
| SG&A Expenses | $4.14B$2.73B | +51.5% |
| Operating Expenses | $13.46B$10.82B | +24.3% |
| Operating Income | $3.69B$1.90B | +94.4% |
| Interest Expense | $131.00M$92.00M | +42.4% |
| Net Income | $4.33B$1.64B | +164.2% |
| EPS (Basic) | $2.67$1.01 | +164.4% |
| EPS (Diluted) | $2.65$1.00 | +165.0% |
| Shares Outstanding (Basic) | 1.62B1.62B | +0.2% |
| Shares Outstanding (Diluted) | 1.64B1.64B | −0.1% |
05—Questions
Frequently Asked Questions
What were the key drivers of AMD's revenue growth in fiscal year 2025?
AMD's revenue growth in fiscal year 2025 was primarily driven by strong demand in its Data Center segment, particularly for EPYC processors and Instinct GPUs, and a significant increase in the Client and Gaming segment, fueled by Ryzen processors, gaming GPUs, and semi-custom SoCs.
How did AMD's AI strategy contribute to its performance?
AMD's AI strategy was a major contributor, with strong demand for its Data Center AI accelerators, including the Instinct MI350 Series GPUs. Strategic acquisitions like ZT Systems and key partnerships, such as the one with OpenAI for GPU deployment, underscore the company's commitment to expanding its AI capabilities and market presence.
What is the company's financial health and liquidity position?
AMD's financial health appears strong, with a significant increase in cash, cash equivalents, and short-term investments to $10.6 billion as of December 27, 2025. This provides substantial liquidity for ongoing operations, capital expenditures, and strategic investments, despite an increase in total debt to $3.3 billion.
What impact did U.S. export restrictions have on AMD's business?
The U.S. government's export restrictions impacted AMD's MI308 Data Center GPU products, leading to approximately $800 million in inventory and related charges. However, the company received some licenses to ship these products to certain China-based customers, and managed to reverse $360 million of these charges by resuming shipments in the fourth quarter of fiscal year 2025.
06—Continue