45% Year-on-Year Rise Lifts AMD Q3 Revenue to Record High as Data Centre Revenue Almost Doubles!

Record data centre revenue of $8.546 billion was the leading contributor to AMD’s overall growth in the third quarter of 2026, increasing 97% year on year and 27% quarter on quarter. The US chipmaker published its quarterly financial results on Tuesday. AMD attributed the data centre performance chiefly to stronger demand for EPYC server processors and the launch of Instinct MI450 Series AI accelerators. Against a backdrop of continued investment in AI infrastructure by major technology companies, AMD is bringing its next-generation AI computing products into use more rapidly.

The first AMD Helios rack-scale solutions, equipped with Instinct MI450 Series GPUs and sixth-generation EPYC processors, are now running AI models and workloads for customers including Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure. In a further announcement, Oracle Cloud Infrastructure said it would deploy AMD’s sixth-generation EPYC processors in its OCI Compute E7 cloud instances. General availability of storage-optimised cloud instances using fifth-generation EPYC processors was also announced by Google Cloud and Microsoft.

An 8% year-on-year fall left AMD’s combined Client and Gaming revenue at $3.722 billion for the third quarter. The two businesses diverged: Client revenue increased 7% year on year to $2.949 billion, chiefly on stronger sales of Ryzen mobile processors, whereas Gaming revenue dropped 40% to just $773 million, largely owing to reduced revenue from semi-custom chips and graphics products. Third-quarter Embedded revenue, meanwhile, advanced 29% year on year to $1.109 billion. This increase was principally supported by rising demand in end markets including aerospace and defence, automotive, communications and industrial.

AMD’s fourth-quarter revenue guidance centres on approximately $17 billion, with a tolerance of plus or minus 3%, giving an approximate range of $16.49 billion to $17.51 billion. That midpoint would represent increases of approximately 66% year on year and 27% quarter on quarter. The guidance therefore points to AMD’s expectation that revenue growth will gather further pace towards year-end. For the same quarter, the company forecasts a non-GAAP gross margin of approximately 55%.

Revenue above the upper limit of the previous guidance range and a near-doubling of data centre revenue year on year marked AMD’s record third-quarter results, according to Chair and CEO Lisa Su. Demand continues to rise for both Instinct and EPYC products. The company anticipates faster growth again in the fourth quarter as it increases production of Helios systems and next-generation processors codenamed “Venice”.

Market Insight: AMD’s Adjusted Earnings Rise as Free Cash Flow Falls

Operating leverage from the expansion of AMD’s data centre business was reflected in a 74% year-on-year increase in third-quarter adjusted earnings per share, according to the company. Its outlook for the fourth quarter likewise points to robust demand across the data centre product portfolio. Free cash flow moved lower, however, with AMD reporting $554 million for the third quarter against $1.530 billion a year earlier. Cash, cash equivalents and short-term investments together stood at $15.776 billion at the close of the third quarter.