10-QPeriod: Q1 FY2026

ADVANCED MICRO DEVICES INC Quarterly Report for Q1 Ended Mar 28, 2026

Filed May 6, 2026For Securities:AMD

Summary

Advanced Micro Devices (AMD) reported strong financial results for the quarter ending March 28, 2026, with net revenue reaching $10.3 billion, 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% 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 billion, 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.

Financial Highlights

53 data points
Beta

Revenue

$10.25B

52.8% Gross Margin

Net Income

$1.38B

13.5% Net Margin

EPS (Diluted)

$0.84

Total Assets

$79.64B

Cash & Equivalents

$5.58B

Free Cash Flow

$2.57B

Financial Statements
Beta
Revenue$10.25B
Cost of Revenue$4.84B
Gross Profit$5.42B
R&D Expenses$2.40B
SG&A Expenses$1.25B
Operating Expenses$3.94B
Operating Income$1.48B
Interest Expense$37.00M
Net Income$1.38B
EPS (Basic)$0.85
EPS (Diluted)$0.84
Shares Outstanding (Basic)1.63B
Shares Outstanding (Diluted)1.65B

Key Highlights

  • 1Net revenue increased by 38% year-over-year to $10.3 billion.
  • 2Data Center segment revenue grew significantly, driven by EPYC processors and Instinct GPUs.
  • 3Gross margin improved to 53% due to a favorable product mix.
  • 4Net income more than doubled to $1.4 billion, with diluted EPS of $0.84.
  • 5Operating income reached $1.5 billion, a substantial increase from the prior year.
  • 6Cash, cash equivalents, and short-term investments totaled $12.3 billion, indicating strong liquidity.
  • 7The company generated $3.0 billion in cash from operating activities.

Frequently Asked Questions

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.

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.

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.

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.