01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Advanced Micro Devices (AMD) reported strong financial results for the quarter ending March 28, 2026, with net revenue reaching $10.3 billiona, a significant 38% increase year-over-year.
This growth was primarily propelled by robust demand in the Data Center segment, driven by high-performance EPYC processors and Instinct GPUs, and a healthy increase in the Client and Gaming segment due to Ryzen processors. The company also demonstrated improved profitability, with gross margin expanding to 53%b from 50% in the prior year, attributed to a favorable product mix.
Operating income more than doubled to $1.5 billion, and net income surged to $1.4 billionc, translating to diluted earnings per share of $0.84. AMD's financial position remains solid, with cash, cash equivalents, and short-term investments totaling $12.3 billion, and the company continues to generate substantial cash from operations, funding strategic investments and returning capital to shareholders through stock repurchases.
02—Key points
Key Highlights
- Net revenue increased by 38% year-over-year to $10.3 billion.
- Data Center segment revenue grew significantly, driven by EPYC processors and Instinct GPUs.
- Gross margin improved to 53% due to a favorable product mix.
- Net income more than doubled to $1.4 billion, with diluted EPS of $0.84.
- Operating income reached $1.5 billion, a substantial increase from the prior year.
- Cash, cash equivalents, and short-term investments totaled $12.3 billion, indicating strong liquidity.
- The company generated $3.0 billion in cash from operating activities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Advanced Micro Devices Inc kept $0.13.
- Revenue$10.25B100.0%
- Cost of revenue−$4.84B47.2%
- Gross profit$5.42B52.8%
- Operating costs−$3.94B38.4%
- Operating income$1.48B14.4%
- Interest, other & tax−$93.0M0.9%
- Net income$1.38B13.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $10.25B$7.44B | +37.8% |
| Cost of Revenue | $4.84B$3.70B | +30.7% |
| Gross Profit | $5.42B$3.74B | +45.0% |
| R&D Expenses | $2.40B$1.73B | +38.7% |
| SG&A Expenses | $1.25B$886.00M | +41.4% |
| Operating Expenses | $3.94B$2.93B | +34.5% |
| Operating Income | $1.48B$806.00M | +83.1% |
| Interest Expense | $37.00M$20.00M | +85.0% |
| Net Income | $1.38B$709.00M | +95.1% |
| EPS (Basic) | $0.85$0.44 | +93.2% |
| EPS (Diluted) | $0.84$0.44 | +90.9% |
| Shares Outstanding (Basic) | 1.63B1.62B | +0.7% |
| Shares Outstanding (Diluted) | 1.65B1.63B | +1.5% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth in this quarter?
Revenue growth was primarily driven by strong demand in the Data Center segment, specifically for AMD EPYC processors and Instinct GPUs, and a healthy increase in the Client and Gaming segment, fueled by Ryzen processors. The Embedded segment also saw a moderate increase.
How has AMD's profitability changed compared to the previous year?
AMD has shown significant improvement in profitability. Gross margin increased from 50% to 53% due to a more favorable product mix. This, combined with increased revenue, led to a substantial increase in operating income and net income.
What is AMD's current financial health and liquidity position?
AMD's financial health is strong. As of March 28, 2026, the company held $12.3 billion in cash, cash equivalents, and short-term investments. They also generated a robust $3.0 billion in cash from operating activities during the quarter, indicating excellent liquidity and operational cash flow generation.
Are there any significant acquisitions or divestitures impacting the current financials?
The report mentions the acquisition of ZT Systems in March 2025, with its manufacturing business divested in October 2025. While the ZT Manufacturing Business was presented as discontinued operations, the ZT Design Business's results are included in continuing operations within the Data Center segment. The ZT Systems acquisition is expected to enhance AMD's end-to-end AI solutions.
06—Continue