AMD Reports Record Q3 2025 Revenue and Strong Earnings

Advanced Micro Devices (AMD.US) announced record financial results for the third quarter of 2025, with revenue reaching $9.2 billion, marking a 36% year-over-year increase. Non-GAAP diluted earnings per share (EPS) was $1.20, exceeding the analyst estimate of $1.17 and representing a 30% increase year-over-year. These strong results were driven by broad-based demand across its Data Center AI, Server, and PC businesses.

Strong Segment Performance

The Data Center segment achieved revenue of $4.3 billion, growing 22% year-over-year, primarily due to robust demand for 5th Gen AMD EPYC™ processors and AMD Instinct MI350 Series GPUs. The Client and Gaming segment also showed significant strength, with revenue increasing 73% year-over-year to $4.0 billion, fueled by record sales of Ryzen™ processors, higher semi-custom revenue, and strong demand for Radeon™ gaming GPUs. Client revenue alone was a record $2.8 billion, up 46% year-over-year.

Conversely, the Embedded segment experienced an 8% year-over-year decline in revenue, totaling $857 million, despite a strengthened demand environment across multiple markets. Overall, the company's non-GAAP gross margin remained strong at 54%, flat year-over-year, reflecting a stable product mix.

Management Outlook

For the fourth quarter of 2025, AMD anticipates revenue to be approximately $9.6 billion, plus or minus $300 million, which would represent a 25% year-over-year growth. The non-GAAP gross margin is expected to be approximately 54.5%. This positive outlook underscores management's confidence in continued growth, particularly from its expanding compute franchise and rapidly scaling data center AI business.

Management highlighted accelerating customer momentum for AMD AI platforms, including a strategic partnership with OpenAI for the deployment of 6 gigawatts of AMD GPUs, with initial deployment of 1 gigawatt of AMD Instinct MI450 GPUs expected in the second half of 2026. Oracle and AMD also announced that Oracle Cloud Infrastructure will offer the first publicly available AI supercluster powered by AMD's "Helios" rack design, with 50,000 GPUs beginning deployment in Q3 2026. These collaborations are expected to drive significant future revenue and earnings growth.