The Pulse
AMD Data Center Revenue Jumps 97% on Instinct and EPYC Sales
AMD says its Data Center revenue reached $8.5 billion in the third quarter of 2026, up 97% year over year. The company forecast fourth-quarter revenue of about $17 billion as it scales Helios and Venice production.
AI.info Team · Written with AI · fact-checked ·
AMD’s Data Center revenue climbed 97% year over year in the third quarter, while its Client and Gaming segment fell 8%. The company reported $8.5 billion in Data Center sales, driven by demand for EPYC processors and the launch of Instinct MI450 Series GPUs. The contrasting segment results framed AMD’s Nov. 3 earnings report, which recorded $13.4 billion in total revenue.
Instinct and EPYC drive the Data Center jump
AMD chair and CEO Dr. Lisa Su described the quarter as a record, saying Data Center sales nearly doubled from a year earlier. She tied the segment’s momentum to strengthening demand for the company’s Instinct and EPYC products, and said AMD expects growth to accelerate further in the fourth quarter as it scales Helios and “Venice” production.
“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,”
Dr. Lisa Su, AMD chair and CEO
The company also named several customers and partners using its first Helios rack-scale systems: Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure. AMD said the systems combine Instinct MI450 Series GPUs with sixth-generation EPYC CPUs. The announcements put the quarter’s product demand alongside deployments and workload plans across the companies named in AMD’s release.
Record sales came with higher earnings
Total third-quarter revenue rose 45% from a year earlier and 16% from the previous quarter. GAAP operating income reached $2.8 billion, up 123% year over year, while GAAP net income was $2.4 billion, up 95%. Diluted GAAP earnings per share came to $1.46, also a 95% year-over-year increase.
On a non-GAAP basis, AMD reported operating income of $3.9 billion, up 75%, and net income of $3.5 billion, up 77%. Non-GAAP diluted earnings per share rose 74% to $2.09. CFO Jean Hu said the revenue and earnings growth reflected the scale of AMD’s Data Center business.
“Third quarter revenue grew 45% year-over-year to a record $13.4 billion, while non-GAAP earnings per share grew 74%, demonstrating the significant operating leverage in our business model as our Data Center business drives scale,”
Jean Hu, AMD executive vice president, chief financial officer and treasurer
Client and Gaming sales moved the other way
Client and Gaming revenue totaled $3.7 billion, down 8% year over year. AMD’s Client business brought in $2.9 billion, up 7%, with sales of Ryzen mobile processors driving that result. Gaming revenue was $773 million, down 40%, as semi-custom and graphics revenue declined.
The Embedded segment contributed $1.1 billion, a 29% increase from a year earlier. AMD attributed the growth to aerospace and defense, automotive, communications and industrial end markets. Its results show that the quarter’s gains extended beyond Data Center, even as the Client and Gaming segment contracted.
AMD sets a $17 billion fourth-quarter target
AMD expects fourth-quarter revenue of approximately $17 billion, plus or minus 3%, and non-GAAP gross margin of about 55%. The company said the midpoint of its revenue outlook would represent year-over-year growth of approximately 66% and a sequential increase of approximately 27%. Su said AMD expects growth to accelerate as it scales Helios and “Venice” production.
The release also lists a series of product and customer announcements, including Oracle Cloud Infrastructure’s plans to use sixth-generation EPYC CPUs in OCI Compute E7 instances. AMD said ROCm 10 had been released with updated libraries, compilers, frameworks, tools and model support. Its forecast and those announcements are company expectations and plans; AMD cautioned that actual results could differ materially because of market conditions and other risks described in the release.