AMD (NASDAQ: AMD) Q1 2026 revenue surges 38% on AI data center demand
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Advanced Micro Devices, Inc. reported very strong first quarter 2026 results with sharp year-over-year growth. Revenue reached $10.3 billion, up 38% from $7.4 billion a year earlier, as Data Center became the main growth engine. GAAP net income rose to $1.4 billion and diluted EPS increased to $0.84, up 91% year-over-year, while non-GAAP diluted EPS grew 43% to $1.37.
Data Center segment revenue climbed 57% to $5.8 billion, driven by AMD EPYC processors and Instinct GPUs, while Client and Gaming revenue rose 23% to $3.6 billion and Embedded grew 6% to $873 million. AMD generated record free cash flow of $2.6 billion and ended the quarter with $12.3 billion in cash, cash equivalents and short-term investments. For the second quarter of 2026, the company expects revenue of about $11.2 billion, plus or minus $300 million, implying roughly 46% year-over-year and 9% sequential growth at the midpoint, with non-GAAP gross margin around 56%.
Positive
- Strong top-line acceleration: Q1 2026 revenue reached $10.3 billion, up 38% year-over-year, with Data Center revenue up 57% to $5.8 billion driven by EPYC CPUs and Instinct GPUs.
- Significant earnings expansion: GAAP diluted EPS increased 91% year-over-year to $0.84, while non-GAAP diluted EPS rose 43% to $1.37 on higher margins and scale.
- Record cash generation: Free cash flow grew to $2.6 billion with an approximately 25% margin, and cash plus short-term investments increased to $12.3 billion.
- Robust outlook: For Q2 2026, AMD expects about $11.2 billion in revenue (±$300 million), implying roughly 46% year-over-year and 9% sequential growth at the midpoint, with non-GAAP gross margin around 56%.
Negative
- None.
Insights
AMD posts strong AI-driven Q1 growth and guides to further acceleration.
AMD delivered Q1 2026 revenue of $10.3 billion, up 38% year-over-year, with non-GAAP EPS up 43% to $1.37. Growth was led by the Data Center segment, where revenue reached $5.8 billion, up 57% year-over-year, reflecting demand for EPYC CPUs and Instinct GPUs supporting AI infrastructure.
Profitability expanded meaningfully. GAAP operating income nearly doubled year-over-year to $1.5 billion, while non-GAAP operating income rose to $2.5 billion with a 25% non-GAAP operating margin. Free cash flow hit a record $2.6 billion, and cash plus short-term investments increased to $12.3 billion, strengthening the balance sheet even as AMD continues to invest in AI products and collaborations.
Management’s Q2 2026 outlook points to continued momentum: revenue of about $11.2 billion, plus or minus $300 million, implies roughly 46% year-over-year and 9% sequential growth at the midpoint, with non-GAAP gross margin around 56%. The release cites expanding partnerships with hyperscalers and customers such as Meta, Samsung and major cloud providers as supporting the data center AI growth trajectory.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $10.253B
Q1 2026 GAAP diluted EPS: $0.84
Q1 2026 non-GAAP diluted EPS: $1.37
+5 more
8 metrics
Q1 2026 Revenue
$10.253B
GAAP net revenue, up 38% year-over-year from $7.438B
Q1 2026 GAAP diluted EPS
$0.84
Up 91% year-over-year from $0.44 in Q1 2025
Q1 2026 non-GAAP diluted EPS
$1.37
Up 43% year-over-year from $0.96 in Q1 2025
Data Center segment revenue
$5.775B
Q1 2026, up 57% year-over-year from $3.674B
Client and Gaming revenue
$3.605B
Q1 2026, up 23% year-over-year from $2.941B
Free cash flow
$2.566B
Q1 2026, with free cash flow margin of 25%
Cash and short-term investments
$12.347B
Balance sheet as of March 28, 2026
Q2 2026 revenue outlook
$11.2B ± $0.3B
Midpoint implies ~46% YoY and ~9% sequential growth
Key Terms
non-GAAP, free cash flow, Data Center segment, Adjusted EBITDA, +2 more
6 terms
non-GAAP financial
"in addition to financial results presented on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis, contains certain non-GAAP financial information"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
free cash flow financial
"record quarterly free cash flow"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Data Center segment financial
"Data Center segment revenue was $5.8 billion, up 57% year-over-year"
Adjusted EBITDA financial
"Adjusted EBITDA (2) | | $ | 2,746"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
operating margin financial
"Operating margin | 14% | 11% | Up 3 ppts | 17% | Down 3 ppts"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
Earnings Snapshot
Revenue: $10.253B · Guidance included
Q1 2026
Revenue
$10.253B
+38% YoY
GAAP diluted EPS
$0.84
+91% YoY
Non-GAAP diluted EPS
$1.37
+43% YoY
Data Center revenue
$5.775B
+57% YoY
Guidance
For Q2 2026, AMD expects revenue of approximately $11.2 billion, plus or minus $300 million, with non-GAAP gross margin around 56%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
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(408 ) 749-4000
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 5, 2026, Advanced Micro Devices, Inc. ("AMD") announced its financial results for its first quarter of 2026 ended March 28, 2026 in a press release that is attached hereto as Exhibit 99.1. Attached hereto as Exhibit 99.2 is a presentation regarding AMD's first quarter of 2026.
The attached Exhibits 99.1 and 99.2, in addition to financial results presented on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis, contains certain non-GAAP financial information and forward-looking financial guidance. Certain of these non-GAAP financial measures will be used in AMD’s earnings conference call. A reconciliation of these non-GAAP financial measures to their nearest GAAP equivalents is provided in the data tables at the end of the attached Exhibits 99.1 and 99.2. These non-GAAP financial measures should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP.
The information in this report furnished pursuant to Items 2.02 and 7.01, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or the Securities Act of 1933, as amended, if such subsequent filing specifically references the information furnished pursuant to Items 2.02 and 7.01 of this report.
Item 7.01 Regulation FD Disclosure.
The information set forth under Item 2.02 “Results of Operations and Financial Condition” is incorporated into this Item 7.01 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| EXHIBIT INDEX | ||||||||
Exhibit No. | Description | |||||||
| 99.1 | Press Release dated May 5, 2026 | |||||||
| 99.2 | First Quarter 2026 Financial Results Presentation | |||||||
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K | |||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 5, 2026 | ADVANCED MICRO DEVICES, INC. | ||||||||||
By: | /s/ Jean Hu | ||||||||||
Name: | Jean Hu | ||||||||||
Title: | Executive Vice President, Chief Financial Officer & Treasurer | ||||||||||
NEWS RELEASE
Media Contact:
Phil Hughes
AMD Communications
512-865-9697
phil.hughes@amd.com
Investor Contact:
Liz Stine
AMD Investor Relations
720-652-3965
liz.stine@amd.com
AMD Reports First Quarter 2026 Financial Results
SANTA CLARA, Calif. ― May 5, 2026 ― AMD (NASDAQ:AMD) today announced financial results for the first quarter of 2026. First quarter revenue was $10.3 billion, gross margin was 53%, operating income was $1.5 billion, net income was $1.4 billion and diluted earnings per share was $0.84. On a non-GAAP(*) basis, gross margin was 55%, operating income was $2.5 billion, net income was $2.3 billion and diluted earnings per share was $1.37.
“We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth,” said Dr. Lisa Su, AMD chair and CEO. “We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators. Looking ahead, we expect server growth to accelerate meaningfully as we scale supply to meet demand. Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory."
“First quarter results reflect strong performance across all key financial metrics, with accelerating revenue growth, earnings expansion and record quarterly free cash flow,” said Jean Hu, AMD executive vice president, CFO and treasurer. “These results highlight continued momentum and execution across the business, demonstrating the leverage in our operating model as we invest for accelerated growth while expanding profitability.”
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GAAP Quarterly Financial Results
| Q1'26 | Q1'25 | Y/Y | Q4'25 | Q/Q | |||||||||||||
| Revenue ($M) | $10,253 | $7,438 | Up 38% | $10,270 | Flat | ||||||||||||
| Gross profit ($M) | $5,416 | $3,736 | Up 45% | $5,577 | Down 3% | ||||||||||||
| Gross margin | 53% | 50% | Up 3 ppts | 54% | Down 1 ppt | ||||||||||||
| Operating expenses ($M) | $3,940 | $2,930 | Up 34% | $3,825 | Up 3% | ||||||||||||
| Operating income ($M) | $1,476 | $806 | Up 83% | $1,752 | Down 16% | ||||||||||||
| Operating margin | 14% | 11% | Up 3 ppts | 17% | Down 3 ppts | ||||||||||||
| Net income ($M) | $1,383 | $709 | Up 95% | $1,511 | Down 8% | ||||||||||||
| Diluted earnings per share | $0.84 | $0.44 | Up 91% | $0.92 | Down 9% | ||||||||||||
Non-GAAP(*) Quarterly Financial Results
| Q1'26 | Q1'25 | Y/Y | Q4'25 | Q/Q | |||||||||||||
| Revenue ($M) | $10,253 | $7,438 | Up 38% | $10,270 | Flat | ||||||||||||
| Gross profit ($M) | $5,685 | $3,992 | Up 42% | $5,855 | Down 3% | ||||||||||||
| Gross margin | 55% | 54% | Up 1 ppt | 57% | Down 2 ppts | ||||||||||||
| Operating expenses ($M) | $3,145 | $2,213 | Up 42% | $3,001 | Up 5% | ||||||||||||
| Operating income ($M) | $2,540 | $1,779 | Up 43% | $2,854 | Down 11% | ||||||||||||
| Operating margin | 25% | 24% | Up 1 ppt | 28% | Down 3 ppts | ||||||||||||
| Net income ($M) | $2,265 | $1,566 | Up 45% | $2,519 | Down 10% | ||||||||||||
| Diluted earnings per share | $1.37 | $0.96 | Up 43% | $1.53 | Down 10% | ||||||||||||
Segment Summary
•Data Center segment revenue was $5.8 billion, up 57% year-over-year, driven by strong demand for AMD EPYC™ processors and the continued ramp of AMD Instinct™ GPU shipments.
•Client and Gaming segment revenue was $3.6 billion, up 23% year-over-year. Client business revenue was $2.9 billion, up 26% year-over-year, primarily driven by strong demand for leadership AMD Ryzen™ processors and continued market share gains. Gaming business revenue was $720 million, up 11% year-over-year, driven by solid demand for AMD Radeon™ GPUs partially offset by lower semi-custom revenue.
•Embedded segment revenue was $873 million, up 6% year-over-year, as demand strengthened across several end markets.
Recent PR Highlights
•AMD expanded its data center offerings and deepened strategic collaborations to deliver global compute infrastructure:
◦Meta and AMD announced plans to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first 1-GW to be powered by a custom AMD Instinct MI450-based GPU. Meta will also be a lead customer for the upcoming 6th Gen AMD EPYC CPUs, codenamed “Venice” and “Verano.”
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◦AWS, Google Cloud, Microsoft Azure and Tencent announced new and expanded 5th Gen EPYC-powered cloud instances, including Google Cloud H4D VMs for HPC and Azure instances across general-purpose, memory- and compute-optimized workloads.
◦In the latest MLPerf® results, AMD Instinct MI355X delivered strong competitive performance across the full suite, with leadership results in multiple categories.
◦AMD announced EPYC 8005 server CPUs, delivering leadership performance per-watt-per-dollar optimized for telecommunications and edge environments.
◦AMD and Tata Consultancy Services (TCS) are co-developing AMD Helios-based rack-scale AI infrastructure to accelerate enterprise AI deployments and sovereign AI initiatives in India.
◦AMD and Samsung are collaborating on next-generation AI memory and compute technologies, including HBM4 supply for AMD Instinct MI455X GPUs and advanced DRAM solutions for 6th Gen AMD EPYC CPUs.
◦AMD is collaborating with NAVER Cloud and Upstage to deploy AMD Instinct GPUs and EPYC CPUs across their AI infrastructure, advancing sovereign AI initiatives in Korea.
◦AMD joined Open Telco AI, a GSMA-led initiative to accelerate telco-grade AI models and systems, with AMD Instinct GPUs training Open Telco AI models.
•AMD expanded its offerings for premium enterprise and enthusiast PCs, including:
◦The AMD Ryzen AI PRO 400 Series processors, expanding its lineup of next-generation enterprise desktop PCs that deliver Copilot+ experiences.
◦The Ryzen 9950X3D2 Dual Edition processor, delivering enhanced performance for creative and developer workloads with dual stacks of AMD 3D V-Cache™ technology.
•AMD announced new adaptive and embedded AI processors, including:
◦New Ryzen AI Embedded P100 Series processors, delivering scalable, power-efficient AI compute for industrial and edge applications.
◦The Kintex™ UltraScale+™ Gen 2 family of mid-range FPGAs, delivering advanced memory bandwidth and I/O performance for industrial, imaging and broadcast applications.
Current Outlook
AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.
For the second quarter of 2026, AMD expects revenue to be approximately $11.2 billion, plus or minus $300 million. The mid-point of the revenue range represents year-over-year growth of approximately 46% and a sequential increase of approximately 9%. Non-GAAP gross margin is expected to be approximately 56%.
AMD Teleconference
AMD will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its first quarter 2026 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.
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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
(in millions, except per share data) (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 28, 2026 | December 27, 2025 | March 29, 2025 | |||||||||||||||||||||
| GAAP gross profit | $ | 5,416 | $ | 5,577 | $ | 3,736 | |||||||||||||||||
| GAAP gross margin | 53 | % | 54 | % | 50 | % | |||||||||||||||||
| Stock-based compensation | 8 | 8 | 5 | ||||||||||||||||||||
| Amortization of acquisition-related intangibles | 261 | 260 | 251 | ||||||||||||||||||||
Acquisition-related and other costs (1) | — | 1 | — | ||||||||||||||||||||
| Loss contingency on legal matter | — | 9 | — | ||||||||||||||||||||
| Non-GAAP gross profit | $ | 5,685 | $ | 5,855 | $ | 3,992 | |||||||||||||||||
| Non-GAAP gross margin | 55 | % | 57 | % | 54 | % | |||||||||||||||||
| GAAP operating expenses | $ | 3,940 | $ | 3,825 | $ | 2,930 | |||||||||||||||||
| GAAP operating expenses/revenue % | 38 | % | 37 | % | 39 | % | |||||||||||||||||
| Stock-based compensation | 479 | 478 | 359 | ||||||||||||||||||||
| Amortization of acquisition-related intangibles | 290 | 297 | 316 | ||||||||||||||||||||
Acquisition-related and other costs (1) | 26 | 49 | 42 | ||||||||||||||||||||
| Non-GAAP operating expenses | $ | 3,145 | $ | 3,001 | $ | 2,213 | |||||||||||||||||
| Non-GAAP operating expenses/revenue % | 31 | % | 29 | % | 30 | % | |||||||||||||||||
| GAAP operating income | $ | 1,476 | $ | 1,752 | $ | 806 | |||||||||||||||||
| GAAP operating margin | 14 | % | 17 | % | 11 | % | |||||||||||||||||
| Stock-based compensation | 487 | 486 | 364 | ||||||||||||||||||||
| Amortization of acquisition-related intangibles | 551 | 557 | 567 | ||||||||||||||||||||
Acquisition-related and other costs (1) | 26 | 50 | 42 | ||||||||||||||||||||
| Loss contingency on legal matter | — | 9 | — | ||||||||||||||||||||
| Non-GAAP operating income | $ | 2,540 | $ | 2,854 | $ | 1,779 | |||||||||||||||||
| Non-GAAP operating margin | 25 | % | 28 | % | 24 | % | |||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
| March 28, 2026 | December 27, 2025 | March 29, 2025 | |||||||||||||||||||||||||||||||||||||||
| GAAP net income / earnings per share | $ | 1,383 | $ | 0.84 | $ | 1,511 | $ | 0.92 | $ | 709 | $ | 0.44 | |||||||||||||||||||||||||||||
| Stock-based compensation | 487 | 0.30 | 486 | 0.29 | 364 | 0.22 | |||||||||||||||||||||||||||||||||||
| Amortization of acquisition-related intangibles | 551 | 0.33 | 557 | 0.34 | 567 | 0.35 | |||||||||||||||||||||||||||||||||||
Acquisition-related and other costs (1) | 27 | 0.02 | 50 | 0.03 | 42 | 0.03 | |||||||||||||||||||||||||||||||||||
| Loss contingency on legal matter | — | — | 9 | 0.01 | — | — | |||||||||||||||||||||||||||||||||||
| (Gains) losses on long-term investments, net | (66) | (0.04) | (280) | (0.17) | 2 | — | |||||||||||||||||||||||||||||||||||
| Equity income in investee | (6) | — | (1) | — | (7) | — | |||||||||||||||||||||||||||||||||||
| Income tax provision | (100) | (0.07) | 78 | 0.04 | (111) | (0.08) | |||||||||||||||||||||||||||||||||||
(Income) loss from discontinued operations, net of tax (2) | (11) | (0.01) | 109 | 0.07 | — | — | |||||||||||||||||||||||||||||||||||
| Non-GAAP net income / earnings per share | $ | 2,265 | $ | 1.37 | $ | 2,519 | $ | 1.53 | $ | 1,566 | $ | 0.96 | |||||||||||||||||||||||||||||
| (1) | Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, and workforce rebalancing charges. | ||||
| (2) | (Income) loss from discontinued operations relates to ZT Systems' manufacturing business which was divested in the fourth quarter of 2025, and includes impact from measurement period adjustments. | ||||
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About AMD
AMD (NASDAQ: AMD) drives innovation in high-performance and AI computing to solve the world’s most important challenges. Today, AMD technology powers billions of experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. With a broad portfolio of AI-optimized CPUs, GPUs, networking and software, AMD delivers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing. Learn more at www.amd.com.
Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as, AMD’s strong momentum based on increasing demand for high-performance CPUs and accelerators due to inferencing and agentic AI; server growth expected to accelerate meaningfully; customer engagements for MI450 Series and Helio strengthening; customer forecasts exceeding initial expectations; AMD’s growing pipeline and growth trajectory; AMD investing to accelerate growth and expand profitability; expected plans, benefits and timing of AMD’s strategic collaborations; the features, functionality, performance, availability, timing and expected benefits of future AMD products; and AMD’s expected second quarter 2026 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD's ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, components (such as memory supply), substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees, leases and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.
5
| (*) | In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue percent, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2026, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provides adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of May 5, 2026, and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law. | |||||||
©2026 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, AMD Instinct, EPYC, FidelityFX, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.
6
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 28, 2026 | December 27, 2025 | March 29, 2025 | ||||||||||||||||||
| Net revenue | $ | 10,253 | $ | 10,270 | $ | 7,438 | ||||||||||||||
| Cost of sales | 4,576 | 4,433 | 3,451 | |||||||||||||||||
| Amortization of acquisition-related intangibles | 261 | 260 | 251 | |||||||||||||||||
| Total cost of sales | 4,837 | 4,693 | 3,702 | |||||||||||||||||
| Gross profit | 5,416 | 5,577 | 3,736 | |||||||||||||||||
| Gross margin | 53 | % | 54 | % | 50 | % | ||||||||||||||
| Research and development | 2,397 | 2,330 | 1,728 | |||||||||||||||||
| Marketing, general and administrative | 1,253 | 1,198 | 886 | |||||||||||||||||
| Amortization of acquisition-related intangibles | 290 | 297 | 316 | |||||||||||||||||
| Total operating expenses | 3,940 | 3,825 | 2,930 | |||||||||||||||||
| Operating income | 1,476 | 1,752 | 806 | |||||||||||||||||
| Interest expense | (37) | (36) | (20) | |||||||||||||||||
| Other income (expense), net | 165 | 358 | 39 | |||||||||||||||||
| Income from continuing operations before income taxes and equity income | 1,604 | 2,074 | 825 | |||||||||||||||||
| Income tax provision | 238 | 455 | 123 | |||||||||||||||||
| Equity income in investee | 6 | 1 | 7 | |||||||||||||||||
| Income from continuing operations, net of tax | 1,372 | 1,620 | 709 | |||||||||||||||||
| Income (loss) from discontinued operations, net of tax | 11 | (109) | — | |||||||||||||||||
| Net income | $ | 1,383 | $ | 1,511 | $ | 709 | ||||||||||||||
| Earnings (loss) per share: | ||||||||||||||||||||
| Basic earnings from continuing operations | $ | 0.84 | $ | 1.00 | $ | 0.44 | ||||||||||||||
| Basic earnings (loss) from discontinued operations | $ | 0.01 | $ | (0.07) | $ | — | ||||||||||||||
| Basic earnings per share | $ | 0.85 | $ | 0.93 | $ | 0.44 | ||||||||||||||
| Diluted earnings from continuing operations | $ | 0.83 | $ | 0.99 | $ | 0.44 | ||||||||||||||
| Diluted earnings (loss) from discontinued operations | $ | 0.01 | $ | (0.07) | $ | — | ||||||||||||||
| Diluted earnings per share | $ | 0.84 | $ | 0.92 | $ | 0.44 | ||||||||||||||
| Shares used in per share calculation | ||||||||||||||||||||
| Basic | 1,631 | 1,630 | 1,620 | |||||||||||||||||
| Diluted | 1,650 | 1,649 | 1,626 | |||||||||||||||||
7
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
| March 28, 2026 | December 27, 2025 | |||||||||||||
| (Unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 5,585 | $ | 5,539 | ||||||||||
| Short-term investments | 6,762 | 5,013 | ||||||||||||
| Accounts receivable, net | 6,035 | 6,315 | ||||||||||||
| Inventories | 8,045 | 7,920 | ||||||||||||
| Prepaid expenses and other current assets | 2,201 | 2,160 | ||||||||||||
| Total current assets | 28,628 | 26,947 | ||||||||||||
| Property and equipment, net | 2,723 | 2,312 | ||||||||||||
| Goodwill | 25,344 | 25,126 | ||||||||||||
| Acquisition-related intangibles, net | 16,154 | 16,705 | ||||||||||||
| Deferred tax assets | 476 | 384 | ||||||||||||
| Other non-current assets | 6,317 | 5,452 | ||||||||||||
| Total Assets | $ | 79,642 | $ | 76,926 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 2,997 | $ | 2,929 | ||||||||||
| Accrued liabilities | 5,785 | 5,250 | ||||||||||||
| Current portion of long-term debt, net | 874 | 874 | ||||||||||||
| Other current liabilities | 850 | 402 | ||||||||||||
| Total current liabilities | 10,506 | 9,455 | ||||||||||||
| Long-term debt | 2,350 | 2,348 | ||||||||||||
| Long-term operating lease liabilities | 647 | 625 | ||||||||||||
| Deferred tax liabilities | 307 | 313 | ||||||||||||
| Other long-term liabilities | 1,370 | 1,186 | ||||||||||||
| Stockholders' equity: | ||||||||||||||
| Capital stock: | ||||||||||||||
| Common stock, par value $0.01 | 17 | 17 | ||||||||||||
| Additional paid-in capital | 63,856 | 63,365 | ||||||||||||
| Treasury stock, at cost | (7,421) | (7,079) | ||||||||||||
| Retained earnings | 8,082 | 6,699 | ||||||||||||
| Accumulated other comprehensive loss | (72) | (3) | ||||||||||||
| Total stockholders' equity | 64,462 | 62,999 | ||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 79,642 | $ | 76,926 | ||||||||||
8
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions) (Unaudited)
| Three Months Ended | |||||||||||||||||
| March 28, 2026 | March 29, 2025 | ||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 1,383 | $ | 709 | |||||||||||||
| (Income) from discontinued operations, net of tax | (11) | — | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 206 | 175 | |||||||||||||||
| Amortization of acquisition-related intangibles | 551 | 567 | |||||||||||||||
| Stock-based compensation | 487 | 364 | |||||||||||||||
| (Gains) losses on long-term investments, net | (66) | 2 | |||||||||||||||
| Deferred income taxes | (79) | (167) | |||||||||||||||
| Other | 28 | 37 | |||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts receivable, net | 280 | 748 | |||||||||||||||
| Inventories | (125) | (682) | |||||||||||||||
| Prepaid expenses and other assets | (308) | (237) | |||||||||||||||
| Accounts payable | (104) | (289) | |||||||||||||||
| Accrued and other liabilities | 713 | (288) | |||||||||||||||
| Net cash provided by operating activities of continuing operations | 2,955 | 939 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (389) | (212) | |||||||||||||||
| Purchases of short-term investments | (2,545) | (304) | |||||||||||||||
| Proceeds from maturity of short-term investments | 652 | 365 | |||||||||||||||
| Proceeds from sale of short-term investments | 126 | 33 | |||||||||||||||
| Purchases of long-term investments | (409) | (239) | |||||||||||||||
| Net cash used in investing activities of continuing operations | (2,565) | (357) | |||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from debt and commercial paper issuance, net of issuance costs | — | 2,441 | |||||||||||||||
| Proceeds from sales of common stock through employee equity plans | 5 | 4 | |||||||||||||||
| Repurchases of common stock | (221) | (749) | |||||||||||||||
| Stock repurchases for tax withholding on employee equity plans | (134) | (30) | |||||||||||||||
| Net cash (used in) provided by financing activities of continuing operations | (350) | 1,666 | |||||||||||||||
| Net increase in cash, cash equivalents and restricted cash | 40 | 2,248 | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 5,556 | 3,811 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 5,596 | $ | 6,059 | |||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash | |||||||||||||||||
| Cash and cash equivalents | $ | 5,585 | $ | 6,049 | |||||||||||||
| Restricted cash included in Prepaid expenses and other current assets | 11 | 10 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 5,596 | $ | 6,059 | |||||||||||||
9
ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions) (Unaudited)
| Three Months Ended | |||||||||||||||||||||||
| March 28, 2026 | December 27, 2025 | March 29, 2025 | |||||||||||||||||||||
Segment and Disaggregated Revenue Information (1) | |||||||||||||||||||||||
| Net Revenue: | |||||||||||||||||||||||
| Data Center Segment | $ | 5,775 | $ | 5,380 | $ | 3,674 | |||||||||||||||||
| Client and Gaming Segment | |||||||||||||||||||||||
| Client | 2,885 | 3,097 | 2,294 | ||||||||||||||||||||
| Gaming | 720 | 843 | 647 | ||||||||||||||||||||
| Total Client and Gaming | 3,605 | 3,940 | 2,941 | ||||||||||||||||||||
| Embedded Segment | 873 | 950 | 823 | ||||||||||||||||||||
| Total net revenue | $ | 10,253 | $ | 10,270 | $ | 7,438 | |||||||||||||||||
| Operating Income (Loss): | |||||||||||||||||||||||
| Data Center Segment | $ | 1,599 | $ | 1,752 | $ | 932 | |||||||||||||||||
| Client and Gaming Segment | 575 | 725 | 496 | ||||||||||||||||||||
| Embedded Segment | 338 | 357 | 328 | ||||||||||||||||||||
| All other | (1,036) | (1,082) | (950) | ||||||||||||||||||||
| Total operating income | $ | 1,476 | $ | 1,752 | $ | 806 | |||||||||||||||||
| Other Data | |||||||||||||||||||||||
| Capital expenditures | $ | 389 | $ | 222 | $ | 212 | |||||||||||||||||
Adjusted EBITDA (2) | $ | 2,746 | $ | 3,048 | $ | 1,954 | |||||||||||||||||
| Cash, cash equivalents and short-term investments | $ | 12,347 | $ | 10,552 | $ | 7,310 | |||||||||||||||||
Free cash flow (3) | $ | 2,566 | $ | 2,082 | $ | 727 | |||||||||||||||||
| Total assets | $ | 79,642 | $ | 76,926 | $ | 71,550 | |||||||||||||||||
| Total debt | $ | 3,224 | $ | 3,222 | $ | 4,164 | |||||||||||||||||
| (1) | The Company operates as three operating segments, Data Center, Client and Gaming, and Embedded segments. The Data Center segment primarily includes Artificial Intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), AI Network Interface Cards (AI NICs), Field Programmable Gate Arrays (FPGAs) and adaptive System-on-Chip (SoC) products for data centers. The Client and Gaming segment primarily includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. The Embedded segment primarily includes embedded CPUs, APUs, FPGAs, System on Modules (SOMs), and adaptive SoC products. From time to time, the Company may also sell or license portions of its IP portfolio. All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangibles, employee stock-based compensation expense, and acquisition-related and other costs. | |||||||||||||
10
| (2) | Reconciliation of GAAP Net Income to Adjusted EBITDA | |||||||
| Three Months Ended | |||||||||||||||||||||||
| (Millions) (Unaudited) | March 28, 2026 | December 27, 2025 | March 29, 2025 | ||||||||||||||||||||
| GAAP net income | $ | 1,383 | $ | 1,511 | $ | 709 | |||||||||||||||||
| Interest expense | 37 | 36 | 20 | ||||||||||||||||||||
| Other (income) expense, net | (165) | (358) | (39) | ||||||||||||||||||||
| Income tax provision (benefit) | 238 | 455 | 123 | ||||||||||||||||||||
| Equity income in investee | (6) | (1) | (7) | ||||||||||||||||||||
| Stock-based compensation | 487 | 486 | 364 | ||||||||||||||||||||
| Depreciation and amortization | 206 | 194 | 175 | ||||||||||||||||||||
| Amortization of acquisition-related intangibles | 551 | 557 | 567 | ||||||||||||||||||||
| Acquisition-related and other costs | 26 | 50 | 42 | ||||||||||||||||||||
| Loss contingency on legal matter | — | 9 | — | ||||||||||||||||||||
| (Income) loss from discontinued operations, net of tax | (11) | 109 | — | ||||||||||||||||||||
| Adjusted EBITDA | $ | 2,746 | $ | 3,048 | $ | 1,954 | |||||||||||||||||
| The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other (income) expense, net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense, amortization of acquisition-related intangibles, acquisition-related and other costs, loss contingency on legal matter, and (income) loss from discontinued operations, net of tax. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of net income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows. | ||
| (3) | Reconciliation of GAAP Net Cash Provided by Operating Activities of Continuing Operations to Free Cash Flow | |||||||
| Three Months Ended | |||||||||||||||||||||||
| (Millions except percentages) (Unaudited) | March 28, 2026 | December 27, 2025 | March 29, 2025 | ||||||||||||||||||||
| GAAP net cash provided by operating activities of continuing operations | $ | 2,955 | $ | 2,304 | $ | 939 | |||||||||||||||||
| Operating cash flow margin % from continuing operations | 29 | % | 22 | % | 13 | % | |||||||||||||||||
| Purchases of property and equipment | (389) | (222) | (212) | ||||||||||||||||||||
| Free cash flow | $ | 2,566 | $ | 2,082 | $ | 727 | |||||||||||||||||
| Free cash flow margin % | 25 | % | 20 | % | 10 | % | |||||||||||||||||
| The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities of continuing operations for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company's net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities. | ||
11
AMD Financial Results First Quarter 2026 May 5, 2026
2 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Cautionary Statement This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD), such as the features, functionality, performance, availability, timing and expected benefits of future AMD products; AMD's large growth opportunities across diverse set of markets; AMD's data center AI accelerator opportunity; the expected plans, benefits and timing of AMD’s strategic collaborations; the strategic partnership with Meta and the deployment of up to six gigawatts of AMD Instinct GPUs; AMD's expected second quarter 2026 financial outlook, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP Interest Expense/Other Income (Expense), net, non-GAAP tax rate and diluted share count; AMD’s large and compelling TAM; AMD’s ability to expand Data Center and AI leadership; AMD's financial and operating performance; and AMD’s ability to drive long-term shareholder returns, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD's ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, components (such as memory), substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees, leases and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. NON-GAAP Financial Measures In this presentation, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue percent, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2026, AMD uses a projected non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD also provides adjusted free cash flow as supplemental non- GAAP measures of its performance. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance. The non-GAAP financial measures disclosed in this presentation should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the Appendices at the end of this presentation. This presentation also contains forward-looking non-GAAP measures concerning AMD’s financial outlook such as gross margin, operating expenses, interest expense/other income (expense), net, tax rate and diluted share count. These forward-looking non- GAAP measures are based on current expectations as of May 5, 2026, and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent or obligation to publicly update or revise its forward-looking statements made in this presentation except as may be required by law.
3 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Our Journey Leadership Product Portfolio Expanding Customer & Partner Ecosystem Data Center and AI Growth Strong Financial Foundation
4 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Powering AI and High-Performance Compute Everywhere Strategic Pillars High-Performance, Adaptive and Custom AI Platforms Powering AI Everywhere Cloud, Enterprise and Rack-Scale Solutions Expand Data Center Leadership Production-Grade AMD ROCm Software Stack Open Software Platforms & Developer Enablement CPU, GPU, FPGA, Networking, System-on-Chip, Chiplets & Packaging Extend Compute Technology Leadership
5 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Large Growth Opportunities Across a Diverse Set of Markets Embedded Industry’s broadest portfolio of adaptive and embedded computing platforms Data Center Leadership performance and TCO across cloud, enterprise and AI workloads Client and Gaming Performance, efficiency and AI capabilities for commercial and consumer PC and gaming experiences
6 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Revenue Revenue of $10.3 billion increased 38% y/y Driven primarily by strong growth in our Data Center and Client and Gaming segments and a return to growth in the Embedded segment $7.4B $10.3B Q1 2025 Q1 2026
7 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Gross Margin 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP 1 54% 55% Q1 2025 Q1 2026 Non-GAAP gross margin1 was up 170bps y/y driven by a favorable product mix, including a higher Data Center revenue contribution 50% 53% Q1 2025 Q1 2026
8 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Operating Income GAAP Non-GAAP 1 Operating income growth driven by higher revenue partially offset by higher operating expenses Q1 2025 Q1 2026 $0.8B $1.5B 1. See Appendices for GAAP to Non-GAAP reconciliation $1.8B $2.5B Q1 2025 Q1 2026
9 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 GAAP EPS up 91% y/y, primarily driven by higher revenue Q1 2026 Diluted Earnings Per Share GAAP Non-GAAP 1 1. See Appendices for GAAP to Non-GAAP reconciliation $0.44 $0.84 Q1 2025 Q1 2026 Non-GAAP EPS up 43% y/y driven by strong revenue growth and both gross and operating margin expansion $0.96 $1.37 Q1 2025 Q1 2026
10 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Summary P&L | GAAP Q/QQ4’25Y/YQ1’25Q1’26$ in millions, except per share data and % Flat $10,270 Up 38% $7,438 $10,253 Revenue Down 3% $5,577 Up 45% $3,736 $5,416 Gross Profit Down 1 ppt 54%Up 3 ppts 50%53%Gross Margin Up 3% $3,825 Up 34% $2,930 $3,940 Operating Expenses Up 1% 37%Down 1% 39%38%Operating Expense/Revenue % Down 16% $1,752 Up 83% $806 $1,476 Operating Income Down 3 ppts 17%Up 3 ppts 11%14%Operating Margin Down 8% $1,511 Up 95% $709 $1,383 Net Income Down 9% $0.92 Up 91% $0.44 $0.84 Diluted Earnings Per Share
11 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Summary P&L | NON-GAAP1 Q/QQ4’25Y/YQ1’25Q1’26$ in millions, except per share data and % Flat $10,270 Up 38% $7,438 $10,253 Revenue Down 3% $5,855 Up 42% $3,992 $5,685 Gross Profit Down 2 ppts 57%Up 1 ppt 54%55%Gross Margin Up 5% $3,001 Up 42% $2,213 $3,145 Operating Expenses Up 2% 29%Up 1% 30%31%Operating Expense/Revenue % Down 11% $2,854 Up 43% $1,779 $2,540 Operating Income Down 3 ppts 28%Up 1 ppt 24%25%Operating Margin Down 10% $2,519 Up 45% $1,566 $2,265 Net Income Down 10% $1.53 Up 43% $0.96 $1.37 Diluted Earnings Per Share 1. See Appendices for GAAP to Non-GAAP reconciliation
12 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Segment Results Q/QQ4'25Y/YQ1’25Q1’26$ in millions Data Center Up 7%5,380Up 57%3,6745,775Net Revenue Down 9%1,752 Up 72%932 1,599 Operating Income Client & Gaming Down 9%3,940Up 23%2,9413,605Net Revenue Down 21%725Up 16%496 575 Operating Income Embedded Down 8%950Up 6%823873Net Revenue Down 5%357Up 3%328 338 Operating Income
13 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 1. See Appendices for GAAP to Non-GAAP reconciliation Q/QQ4’25Q1’26$ in millions Up 17% $10,552 $12,347 Cash, Cash Equivalents and Short-term Investments Down 4% $6,315 $6,035Accounts Receivable, Net Up 2% $7,920 $8,045 Inventories Flat $3,222 $3,224 Total Debt Q1 2026 Summary Balance Sheet Items Record cash from operating activities of continuing operations of $3.0 billion; record free cash flow of $2.6 billion1
14 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Driven by strong demand for AMD EPYCTM processors and AMD InstinctTM GPUs Strategic Highlights Q1 2026 Data Center Segment Revenue $3.7B $5.8B Q1 2025 Q1 2026 Revenue $5.8 Billion Up 57% y/y Operating Margin Driven by higher revenue partially offset by higher operating expenses Operating Income $1.6 Billion vs. $0.9 Billion a year ago • Meta plans to deploy up to 6 GW of AMD Instinct GPUs, with the first 1-GW deployment powered by a custom AMD Instinct MI450-based GPU. Meta will also be a lead customer for 6th Gen AMD EPYC CPUs. • AWS, Google Cloud, Microsoft Azure and Tencent announced new and expanded 5th Gen EPYC-powered cloud instances, including Google Cloud H4D VMs for HPC and Azure instances across general-purpose, memory- and compute-optimized workloads. • In the latest MLPerf® results, AMD Instinct MI355X GPUs delivered strong competitive performance across the full suite, with leadership results in multiple categories. • Announced EPYC 8005 Server CPUs, delivering leadership performance per-watt-per-dollar for telecommunications and edge environments. • AMD and Samsung announced a collaboration on HBM4 supply for AMD Instinct MI455X GPUs and advanced DRAM solutions for 6th Gen AMD EPYC CPUs. 25% 28% Q1 2025 Q1 2026
15 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Client and Gaming Segment 17% 16% Q1 2025 Q1 2026 Revenue Operating Margin Driven by higher revenue partially offset by higher operating expenses Revenue $3.6 Billion Up 23% y/y Operating Income $575 Million vs. $496 Million a year ago Strategic Highlights • Launched AMD Ryzen AI PRO 400 Series processors, enabling next-generation enterprise desktop PCs that deliver Copilot+ experiences. • Introduced Ryzen 9950X3D2 Dual Edition processors, delivering enhanced performance for creative and developer workloads with dual stacks of 3D V-Cache . • Enabled day-zero support for the latest Gemma 4 models on AMD Ryzen AI processors and Radeon GPUs. • Released FSR 4.1 and Ray Regeneration 1.1, improving raytracing performance for high-quality visuals Client $2.3B Client $2.9B Gaming $0.6B Gaming $0.7B Q1 2025 Q1 2026 $2.9B $3.6B Driven by strong sales of the latest AMD Ryzen processors and continued share gains across consumer and commercial markets
16 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Embedded Segment Revenue Demand strengthened across several end markets Operating Margin Relatively flat due to end market mix $873M Q1 2025 Q1 2026 $823M 40% 39% Q1 2025 Q1 2026 Revenue $873 Million Up 6% y/y Operating Income $338 Million vs. $328 Million a year ago Strategic Highlights • Launched the Kintex UltraScale+ Gen 2 family of mid-range FPGAs, delivering advanced memory bandwidth and I/O performance for industrial, imaging and broadcast applications. • Cisco announced that AMD Ryzen Embedded V3000 processors will power new Cisco N9300 Series switches and 8000 Series routers for AI workloads. • Announced new Ryzen AI Embedded P100 Series processors, delivering scalable, power-efficient AI compute for industrial and edge applications.
17 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Financial Outlook – NON-GAAP1 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of May 5, 2026, and assumptions and beliefs that involve numerous risks and uncertainties. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law. All items, except revenue, are on a non-GAAP basis. Adjustments to arrive at the GAAP financial outlook typically include stock-based compensation, amortization of acquired intangible assets, income tax provision, and other non-recurring items such as impairment charges and acquisition-related costs. A reconciliation to equivalent GAAP measures is not practicable at this time as the timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control. Such events may include unanticipated changes in AMD’s GAAP effective tax rate, unanticipated one-time charges related to asset impairments, unanticipated acquisition-related expenses, unanticipated gains, losses, and impairments, and other unanticipated non-recurring items not reflective of ongoing operations. 2. Refer to Diluted Share Count overview in the Appendices. Q2’26 ~$11.2 Billion +/- $300 Million Revenue ~56%Gross Margin ~$3.3 BillionOperating Expenses $60 MillionInterest Expense/Other Income (Expense), net 13% of pre-tax incomeEffective Tax Rate ~1.66 Billion sharesDiluted Share Count2
18 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Q1 2026 Summary1 1. See Appendices for GAAP to Non-GAAP reconciliation Accelerating revenue growth, earnings expansion and record quarterly free cash flow Revenue $10.3B Up 38% Y/Y Gross Margin 53% Non-GAAP Gross Margin 55% Data Center Segment Revenue $5.8B Up 57% Y/Y Client and Gaming Segment Revenue $3.6B Up 23% Y/Y Diluted EPS $0.84 Non-GAAP Diluted EPS $1.37
19 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Corporate Responsibility at AMD Environmental Advancing environmental solutions across our products, supply chain and operations while accelerating energy efficiency for IT users Social Fostering a workplace where all voices are welcome and valued, partnering with suppliers and positively impacting our communities Governance Integrating corporate responsibility and governance across product design, supply chain, operations and external engagement
20 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Our Momentum Driving Long-term Shareholder Returns Large and Compelling TAM Expanding Data Center and AI Leadership World-Class Execution and Focus Strong Balance Sheet Technology Leadership
21 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Appendices Q4’25Q1’25Q1’26$ in millions, except % (Unaudited) $ 5,577$ 3,736$ 5,416GAAP gross profit 54%50%53%GAAP gross margin 858Stock-based compensation 260251261Amortization of acquisition-related intangibles 1--Acquisition-related and other costs (1) 9--Loss contingency on legal matter $ 5,855$ 3,992$ 5,685Non-GAAP gross profit 57%54%55%Non-GAAP gross margin (1) Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, and workforce rebalancing charges. Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin Q4’25Q1’25Q1’26$ in millions, except % (Unaudited) $ 3,825$ 2,930$ 3,940GAAP operating expenses 37%39%38%GAAP operating expenses/revenue % 478359479Stock-based compensation 297316290Amortization of acquisition-related intangibles 494226Acquisition-related and other costs (1) $ 3,001$ 2,213$ 3,145Non-GAAP operating expenses 29%30%31%Non-GAAP operating expenses/revenue % Reconciliation of GAAP to Non-GAAP Operating Expenses
22 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Appendices Q4’25Q1’25Q1’26$ in millions, except % (Unaudited) $ 1,752$ 806$ 1,476GAAP operating income 17%11%14%GAAP operating margin 486364487Stock-based compensation 557567551Amortization of acquisition-related intangibles 504226Acquisition-related and other costs (1) 9--Loss contingency on legal matter $ 2,854$ 1,779$ 2,540Non-GAAP operating income 28%24%25%Non-GAAP operating margin Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (1) Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, and workforce rebalancing charges.
23 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Appendices Reconciliation of GAAP to Non-GAAP Net Income / Diluted Earnings Per Share Q4’25Q1’25Q1’26$ in millions, except per share data (Unaudited) $ 0.92$ 1,511$ 0.44$ 709$ 0.84$ 1,383GAAP net income / earnings per share 0.294860.223640.30487Stock-based compensation 0.345570.355670.33551Amortization of acquisition-related intangibles 0.03500.03420.0227Acquisition-related and other costs (1) 0.019----Loss contingency on legal matter (0.17)(280)-2(0.04)(66)(Gains) losses on long-term investments, net -(1)-(7)-(6)Equity income in investee 0.0478(0.08)(111)(0.07)(100)Income tax provision 0.07109--(0.01)(11)(Income) loss from discontinued operations, net of tax (2) $ 1.53$ 2,519$ 0.96$ 1,566$ 1.37$ 2,265Non-GAAP net income / earnings per share (1) Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, and workforce rebalancing charges. (2) (Income) loss from discontinued operations relates to ZT Systems' manufacturing business which was divested in the fourth quarter of 2025, and includes impact from measurement period adjustments.
24 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Appendices Reconciliation of GAAP Net Cash Provided by Operating Activities of Continuing Operations to Free Cash Flow Q1’26$ in millions, except % (Unaudited) $ 2,955GAAP net cash provided by operating activities of continuing operations 29%Operating cash flow margin % from continuing operations (389)Purchases of property and equipment $ 2,566Free cash flow 25%Free cash flow margin %
25 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026 Appendices Share Count Overview The table above provides actual share count for Q1’26 and an estimate of share count to use when calculating GAAP and non-GAAP diluted earnings per share for Q2’26. (1) Share counts are weighted average shares. (2) The dilutive impact of employee equity grants is based on the Treasury Stock method and is dependent on the average stock price during the period. The Q1’26 average stock price was $214. The estimated dilutive impact of employee equity grants in Q2’26 is based on the average stock price of $253 between March 29, 2026 and Apr il 24, 2026. Q2’26Q1’26 Shares (millions) (Unaudited) (1) EstimateActual 1,6321,631Basic shares 2319Dilutive impact from employee equity grants (2) 1,6551,650Diluted shares
26 | | Q1 2026 FINANCIAL RESULTS – May 5, 2026
FAQ
How did AMD (AMD) perform financially in Q1 2026?
AMD delivered strong Q1 2026 results with revenue of $10.3 billion, up 38% year-over-year. GAAP net income reached $1.4 billion and diluted EPS was $0.84, while non-GAAP diluted EPS rose to $1.37 on higher margins and scale.
What drove AMD’s revenue growth in Q1 2026?
Q1 2026 revenue growth was led by the Data Center segment, where sales reached $5.8 billion, up 57% year-over-year. Strong demand for AMD EPYC processors and AMD Instinct GPUs for AI infrastructure, plus growth in Client and Gaming and Embedded, supported results.
How profitable was AMD (AMD) in Q1 2026 on a non-GAAP basis?
On a non-GAAP basis, AMD generated Q1 2026 operating income of $2.5 billion with a 25% operating margin. Non-GAAP net income was $2.3 billion and non-GAAP diluted EPS was $1.37, reflecting improved gross margin and operating leverage.
What is AMD’s Q2 2026 financial outlook?
For Q2 2026, AMD expects revenue of approximately $11.2 billion, plus or minus $300 million. At the midpoint, this implies about 46% year-over-year and 9% sequential growth, with expected non-GAAP gross margin of roughly 56%.
How did AMD’s individual segments perform in Q1 2026?
In Q1 2026, Data Center revenue was $5.8 billion (up 57% year-over-year), Client and Gaming revenue was $3.6 billion (up 23%), and Embedded revenue was $873 million (up 6%), showing broad-based growth across AMD’s portfolio.
What was AMD’s cash flow and balance sheet position in Q1 2026?
AMD generated record Q1 2026 free cash flow of $2.6 billion, with free cash flow margin around 25%. Cash, cash equivalents and short-term investments totaled $12.3 billion, while total debt stood at $3.2 billion, indicating a strong net cash position.
What non-GAAP measures does AMD (AMD) highlight for Q1 2026?
AMD highlights non-GAAP gross margin of 55%, non-GAAP operating income of $2.5 billion, non-GAAP operating margin of 25%, and non-GAAP net income of $2.3 billion, providing investors with adjusted views excluding stock-based compensation and acquisition-related items.