AMD Q2 2026 earnings: record revenue, stock drops
Key Numbers at a Glance
Advanced Micro Devices Inc. reported Q2 2026 revenue of $11.5 billion, up 49.6% year over year on a company-reported basis, with GAAP diluted EPS of $1.38 and non-GAAP EPS of $1.66. The company guided Q3 revenue to about $13.0 billion, and shares traded lower after the announcement despite sharply higher revenue and profitability.
Source: company press release, August 4, 2026 at 4:15 PM ET · StockTitan analysis, August 4, 2026 at 5:01 PM ET
On a GAAP basis, Q2 gross margin was 54% and operating income was $2.0 billion, while net income rose to $2.3 billion; diluted EPS increased 156% year over year, according to the release. On a non-GAAP basis, gross margin was 56%, operating income $3.1 billion and net income $2.8 billion, all up strongly from a year earlier.
For the third quarter of 2026, AMD expects revenue to be approximately $13 billion, plus or minus $300 million, and projects a non-GAAP gross margin of about 56%, per the release. Management said the midpoint of that range implies roughly 41% year-over-year growth and a sequential increase of about 13%.
StockTitan data showed AMD shares were down 7.8% as of August 4, 2026 at 5:01 PM ET following the earnings release.
What do AMD's Q2 2026 results show?
Q2's company-reported revenue of $11.5 billion was 49.6% higher than a year earlier and 12.2% above Q1 2026 revenue, underscoring how quickly the top line is scaling. In Q1 2026, AMD had already grown revenue 37.8% year over year, and the company now has two consecutive quarters of accelerating year-over-year revenue growth. That trajectory culminated in AMD's highest quarterly revenue in the last 10 quarters, surpassing the prior peak set in Q4 2025.
| Quarter | Revenue (GAAP, USD) |
|---|---|
| Q2 2026 (company-reported) | $11.5B |
| Q1 2026 | $10.25B |
| Q4 2025 | $10.27B |
| Q3 2025 | $9.25B |
| Q2 2025 | $7.68B |
| Q1 2025 | $7.44B |
| Q4 2024 | $7.66B |
| Q3 2024 | $6.82B |
| Q2 2024 | $5.83B |
| Q1 2024 | $5.47B |
Revenue acceleration has been accompanied by sharp profitability improvements. GAAP gross margin expanded to 54% from 40% a year ago, while operating margin improved to 17%, and non-GAAP operating margin reached 27% versus 12% in Q2 2025, according to the tables in the release. GAAP net income rose 163% year over year to $2.3 billion, and non-GAAP net income climbed 253% to $2.8 billion.
Segment data illustrate where that growth is coming from. Data Center revenue of $6.7 billion was up 107% year over year and represented 58% of company revenue, while Client revenue of $3.1 billion increased 23% and Embedded revenue of $977 million grew 19%. By contrast, Gaming revenue declined 31% to $779 million as semi-custom demand softened, but the strength in Data Center, Client and Embedded more than offset that headwind.
Against this backdrop, the stock’s immediate reaction stands in contrast to the fundamentals. The post-earnings move was smaller in absolute terms than the stock’s average 10.9% post-report swing over the prior four quarters. AMD entered the release up 126.3% year to date and about 17.1% below its 52-week high, and at that snapshot StockTitan data showed it trading at roughly 20 times its trailing four-quarter revenue. For a stock that has already more than doubled this year, changes in growth mix and valuation often matter as much as the headline quarterly figures.
One open question is how long AMD can sustain triple-digit Data Center growth and elevated margins while its Gaming business contracts and Embedded grows more modestly.
Frequently Asked Questions
What did AMD report in Q2 2026?
In Q2 2026, AMD reported company-reported revenue of $11.5 billion. GAAP diluted EPS was $1.38 and non-GAAP diluted EPS was $1.66, and GAAP and non-GAAP gross margins were 54% and 56%, respectively, according to the release.
How did AMD's Q2 2026 results compare with last year?
Compared with Q2 2025, AMD's Q2 2026 company-reported revenue grew 49.6% and GAAP net income increased 163% to $2.3 billion. GAAP gross margin rose from 40% to 54%, operating margin reached 17%, and GAAP diluted EPS climbed 156% from $0.54 to $1.38.
How did AMD's Data Center business perform in Q2 2026?
AMD's Data Center segment generated $6.7 billion of revenue in Q2 2026, up 107% year over year, driven by demand for AMD EPYC processors and AMD Instinct GPUs. Management said Data Center represented 58% of total company revenue in the quarter.
Did AMD provide guidance for Q3 2026?
Yes. For the third quarter of 2026, AMD expects revenue of approximately $13 billion, plus or minus $300 million, and projects a non-GAAP gross margin of about 56%. The company said the midpoint of the revenue range implies roughly 41% year-over-year growth and about 13% sequential growth.
How did the stock react to AMD's Q2 2026 earnings?
AMD shares were down 7.8% as of August 4, 2026 at 5:01 PM ET following the earnings release. The stock was up 126.3% year to date and about 17.1% below its 52-week high at the prior close, and that move was smaller than its average 10.9% post-earnings swing over the prior four quarters.
What is AMD's valuation based on trailing revenue after Q2 2026?
At the post-release snapshot, StockTitan data showed AMD trading at roughly 20 times its trailing four-quarter revenue of about $41.3 billion, incorporating the Q2 2026 results.
Data Sources
Disclaimer: This article presents data from official company reports. The analysis provided is for informational purposes only and should not be considered financial or investment advice. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.