Choose Rich Live
Tech

AMD beats third-quarter estimates on surging data center sales and guides higher

AMD reported third-quarter revenue of $13.4 billion and adjusted earnings per share of $2.09, powered by nearly doubled data center sales, while absorbing a $1.1 billion non-cash charge tied to customer warrants.

Stock chart showing AMD shares surging after-hours to around $518, up approximately 7%.
Image: @Hedgeye

AMD reported record third-quarter 2026 revenue of $13.38 billion to $13.4 billion, up 45% year over year, surpassing consensus estimates that hovered around $13.1 billion. Non-GAAP adjusted earnings per share reached $2.09, beating analyst projections ranging from $1.89 to $1.95. The growth was led by AMD's Data Center division, which saw revenue jump 97% year over year to $8.55 billion on strong demand for artificial intelligence processors.[2][3][4][6][7][8][10][13]

The quarter also included a $1.097 billion non-cash accounting charge resulting from the quarterly remeasurement of customer warrant liabilities, reducing GAAP earnings per share by $0.66, according to financial account Wall St Engine. Under commercial AI agreements, OpenAI and Meta each received warrants to purchase up to 160 million AMD shares at $0.01 per share, which vest based on GPU purchase commitments and AMD stock-price targets. The charge stood as the largest single adjustment between AMD's $2.43 billion GAAP net income and $3.47 billion non-GAAP net income.[1][11]

Elsewhere in the portfolio, Client and Gaming revenue slipped 8% year over year to $3.70 billion, weighed down by a 40% plunge in Gaming revenue to $773 million that offset a 7% increase in Client revenue to $2.95 billion. The Embedded division generated $1.11 billion, up 29%. Looking ahead, AMD forecast fourth-quarter revenue of approximately $17 billion plus or minus 3%, beating expectations, and shares gained more than 7% in after-hours trading.[2][4][7][9][12][14][15]

Key facts

  • AMD reported third-quarter revenue of $13.38B to $13.4B (up 45% YoY) and adjusted EPS of $2.09, beating consensus expectations.
  • Data Center revenue surged 97% year over year to $8.55B, representing 64% of AMD's total revenue compared to 28% in 2023.
  • AMD recorded a $1.097B non-cash remeasurement charge on customer warrant liabilities, reducing GAAP diluted EPS by $0.66 to $1.46.
  • OpenAI and Meta each received warrants to purchase up to 160M AMD shares at $0.01 per share tied to GPU commitments and stock milestones.
  • Client and Gaming revenue fell 8% YoY to $3.70B, with Gaming dropping 40% to $773M and Client rising 7% to $2.95B, while Embedded revenue increased 29% to $1.11B.
  • AMD guided fourth-quarter revenue to approximately $17B (+/- 3%) with non-GAAP gross margin near 55%, exceeding analyst revenue targets.
  • AMD shares jumped more than 7% in after-hours trading following the release.

Sources · 11 sources

  1. CB

    Crypto BriefingArticle ·

    AMD revenue jumps 45% to record $13.4B as AI data center sales nearly double AMD's strategic partnerships with OpenAI and Meta could significantly impact shareholder value and market dynamics through potential dilution and revenue growth. The post AMD revenue jumps 45% to record $13.4B as AI data center sales nearly double appeared first on Crypto Briefing .

    Open source
  2. WS

    Wall St Engine@wallstenginePost on X ·

    $AMD Segment Revenue Growth (YoY): Data Center: +97% Client: +7% Gaming: -40% Embedded: +29% Combined Client and Gaming revenue: -8% https://t.co/crPv2DZAno

    Open source
  3. SI

    Solid Intel 📡@solidintel_xPost on X ·

    INTEL: AMD $AMD beats estimates with $13.38 billion in revenue vs $13.08 billion expected

    Open source
  4. WS

    Wall St Engine@wallstenginePost on X ·

    $AMD Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $13.40B (Est. $13.09B) 🟢; +45% YoY 🔹 Adj. EPS: $2.09 (Est. $1.95) 🟢; +74% YoY Q4 Guide: 🔹 Revenue: ~$17B +/- 3% (Est. $16.23B) 🟢 🔹 Non-GAAP Gross Margin: ~55% Segment Net Revenue: 🔹 Data Center: $8.55B; +97% YoY (Est. $8.27B) 🟢 🔹 Client and Gaming: $3.70B; -8% YoY 🔹 Client: $2.95B; +7% YoY (Est. $3.03B) 🔴 🔹 Gaming: $773M; -40% YoY (Est. $634M) 🟢 🔹 Embedded: $1.11B; +29% YoY (Est. $1.07B) 🟢 Announcements: 🔹 Helios: Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models on first AMD Helios rackscale solutions powered by MI450 GPUs and 6(th) Gen EPYC CPUs 🔹 HPE: Vultr will deploy first AMD Helios by HPE systems in a $12B deal 🔹 Versal AI Core XQRVC1902: space-grade SoC designed for missions lasting up to 15 years Other Q3 Metrics: 🔹 Non-GAAP Gross Margin: 56%; +200 bps YoY 🔹 Non-GAAP Oper Income: $3.92B (Est. $3.67B) 🟢; +75% YoY 🔹 Adj. EBITDA: $4.16B (Est. $4.02B) 🟢; +71% YoY 🔹 FCF: $554M (Est. $1.05B) 🔴; -64% YoY Comments: 🔸 “Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and ‘Venice’ production.” 🔸 “Our fourth-quarter outlook reflects accelerating revenue and earnings growth, driven by strong demand across our Data Center portfolio.”

    Open source
  5. UW

    unusual_whales@unusual_whalesPost on X ·

    AMD, $AMD, has brought in more revenue in the first three quarters of 2026 than in all of 2025. Its has said that its data center business grew 97% from a year ago last quarter, and now makes up 64% of the company, up from 28% in 2023.

    Open source
  6. EV

    Evan@StockMKTNewzPost on X ·

    $AMD JUST REPORTED EARNINGS EPS of $2.09 beating expectations of $1.89🟢 Revenue of $13.4B beating expectations of $13.1B🟢 https://t.co/mJAFaSCDd2

    Open source
  7. SB

    Shay Boloor@StockSavvyShayPost on X ·

    $AMD CRUSHED THEIR Q3 EARNINGS • Revenue $13.4B vs. Est. $13.1B • EPS $2.09 vs. Est. $1.94 • Data Center Revenue $8.55B vs Est. $8.13B • Gross Margin 56% vs. Est. 45% Q4 Guidance • Revenue $17B vs Est. $16B • Gross Margin 55% vs. Est. 55%

    Open source
  8. CN

    CNBC@CNBCPost on X ·

    AMD beats on earnings as data center revenue nearly doubles on soaring sales of AI chips https://t.co/FNl08cT7OJ

    Open source
  9. BL

    Bloomberg@businessPost on X ·

    AMD, a key challenger to Nvidia in AI chips, gave a revenue forecast that exceeded analysts’ estimates, indicating that demand for data center processors remains strong https://t.co/0ueaUXldPR

    Open source
  10. CN

    CNBC@CNBCPost on X ·

    EARNINGS: AMD reported third-quarter earnings that beat Wall Street expectations, with revenue jumping 45% from a year earlier. https://t.co/vfZ48E1UVR https://t.co/HVI3QmZYMs

    Open source
  11. WS

    Wall St Engine@wallstenginePost on X ·

    $AMD RECORDED A $1.1B NON-CASH CHARGE TIED TO ITS OPENAI & META WARRANTS DEALS IN Q3 Buried in AMD's Q3 earnings reconciliation is a $1.097B change in the fair value of customer warrants, reducing GAAP EPS by $0.66. Here's how it works. Under its AI deals, OpenAI and Meta each received warrants to buy up to 160 million AMD shares at just $0.01 per share, or 320 million shares combined. The warrants vest as customers meet GPU purchase commitments and AMD achieves specified stock-price milestones. AMD must revalue these warrants every quarter based on its stock price and other assumptions. As their value increases, AMD records an accounting expense. So the $1.1B charge wasn't cash paid to customers, but it was the largest single adjustment between AMD's $2.43B GAAP net income and $3.47B adjusted net income. The other thing worth watching is the potential shareholder dilution if those warrants eventually vest and are exercised.

    Open source
  12. TE

    Techmeme@TechmemePost on X ·

    AMD reports Q3 revenue up 45% YoY to $13.38B, vs. $13.09B est., Data Center revenue up 97% to $8.5B, forecasts Q4 revenue above est.; AMD jumps 7%+ after hours (@katietarasov / CNBC) (Visit Techmeme dot com for the link and full context!)

    Open source
  13. CB

    Crypto BriefingArticle ·

    AMD posts record $13.38 billion Q3 as data center sales nearly double AMD's record growth highlights the critical role of data centers in driving tech innovation and investor expectations amid the AI boom. The post AMD posts record $13.38 billion Q3 as data center sales nearly double appeared first on Crypto Briefing .

    Open source
  14. MA

    MarketWatch@MarketWatchPost on X ·

    AMD earnings are out — and the stock is up. Here's what investors need to know. https://t.co/vbUb723WAR

    Open source
  15. HE

    Hedgeye@HedgeyePost on X ·

    BREAKING: Advanced Micro Devices, $AMD, soars +7.1% after quarterly revenue and earnings guidance beat estimates. https://t.co/uLQFjjvIry

    Open source