AMD | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 10.27 B

Revenue: As of FY2025 Q4, the actual value is USD 10.27 B, beating the estimate of USD 9.67 B.

EPS: As of FY2025 Q4, the actual value is USD 0.92, beating the estimate of USD 0.8299.

Fourth Quarter 2025 Financial Performance (GAAP)

• Revenue: Advanced Micro Devices, Inc. achieved a record revenue of $10.270 billion in Q4 2025, representing a 34% year-over-year increase and an 11% sequential increase . Total revenue reached a record $10.3 billion, an increase of 34% year-over-year (Y/Y), driven by broad-based demand across the Data Center and Client and Gaming segments, including approximately $390 million in revenue from AMD Instinct MI308 GPU product sales to China .
• Gross Margin: The company’s gross margin was 54% . GAAP gross margin was 54%, up 3 percentage points Y/Y .
• Operating Income: Operating income reached $1.752 billion, a 101% year-over-year increase . GAAP operating income was $1.8 billion, a 101% increase Y/Y, primarily driven by higher revenue partially offset by higher operating expenses .
• Operating Margin: The operating margin was 17%, up 6 percentage points year-over-year . GAAP operating margin was 17%, up 6 percentage points Y/Y .
• Operating Expenses: Operating expenses were $3.825 billion, an increase of 27% year-over-year . GAAP operating expenses were $3,825 million, up 27% Y/Y .
• Net Income: Net income was $1.511 billion, showing a 213% year-over-year increase . GAAP net income was $1,511 million, up 213% Y/Y .

Fourth Quarter 2025 Financial Performance (Non-GAAP)

• Gross Margin: Non-GAAP gross margin was 57%, up 3 percentage points year-over-year . Non-GAAP gross margin was 57%, up 3 percentage points Y/Y . Excluding the impact from the release of inventory and related charges of approximately $360 million and sales of AMD Instinct MI308 to China, non-GAAP gross margin would have been approximately 55% .
• Operating Income: Non-GAAP operating income was a record $2.854 billion, up 41% year-over-year . Non-GAAP operating income was $2.9 billion, a 41% increase Y/Y .
• Operating Margin: Non-GAAP operating margin was 28%, up 2 percentage points year-over-year . Non-GAAP operating margin was 28%, up 2 percentage points Y/Y .
• Operating Expenses: Non-GAAP operating expenses were $3.001 billion, up 42% year-over-year . Non-GAAP operating expenses were $3,001 million, up 42% Y/Y .
• Net Income: Non-GAAP net income was a record $2.519 billion, up 42% year-over-year . Non-GAAP net income was $2,519 million, up 42% Y/Y .

Full Year 2025 Financial Performance (GAAP)

• Revenue: For the full year 2025, Advanced Micro Devices, Inc. reported record revenue of $34.639 billion, a 34% increase year-over-year . Full year revenue reached a record $34.6 billion, an increase of 34% Y/Y, driven by growth in the Data Center and Client and Gaming segments .
• Gross Margin: The gross margin was 50%, up 1 percentage point year-over-year . GAAP gross margin was 50%, up 1 percentage point Y/Y .
• Operating Income: Operating income was $3.694 billion, a 94% increase year-over-year . GAAP operating income was $3,694 million, up 94% Y/Y, driven by higher revenue partially offset by higher operating expenses .
• Operating Margin: The operating margin was 11%, up 4 percentage points year-over-year . GAAP operating margin was 11%, up 4 percentage points Y/Y .
• Operating Expenses: Operating expenses totaled $13.458 billion, up 24% year-over-year . GAAP operating expenses were $13,458 million, up 24% Y/Y .
• Net Income: Net income was $4.335 billion, a significant 164% increase year-over-year . GAAP net income was $4,335 million, up 164% Y/Y .

Full Year 2025 Financial Performance (Non-GAAP)

• Gross Margin: Non-GAAP gross margin was 52%, down 1 percentage point year-over-year . Non-GAAP gross margin was 52%, down 1 percentage point Y/Y, remaining flat Y/Y when considering product mix offset by net inventory and related charges .
• Operating Income: Non-GAAP operating income was a record $7.768 billion, up 27% year-over-year . Non-GAAP operating income was $7,768 million, up 27% Y/Y .
• Operating Margin: Non-GAAP operating margin was 22%, down 2 percentage points year-over-year . Non-GAAP operating margin was 22%, down 2 percentage points Y/Y .
• Net Income: Non-GAAP net income was a record $6.831 billion, up 26% year-over-year . Non-GAAP net income was $6,831 million, up 26% Y/Y .

Segment Revenue

• Data Center Segment: This segment reported a record revenue of $5.380 billion in Q4 2025, up 39% year-over-year, and a record $16.635 billion for the full year 2025, up 32% year-over-year . Q4 2025 Net Revenue was $5,380 million, up 39% Y/Y . FY 2025 Net Revenue was $16,635 million, up 32% Y/Y .
• Client and Gaming Segment: Revenue for this segment was $3.940 billion in Q4 2025, up 37% year-over-year, and a record $14.550 billion for the full year 2025, up 51% year-over-year . Q4 2025 Net Revenue was $3,940 million, up 37% Y/Y . FY 2025 Net Revenue was $14,550 million, up 51% Y/Y . Client business revenue was a record $3.097 billion in Q4 2025 and $10.640 billion for the full year 2025 . Gaming business revenue was $843 million in Q4 2025 and $3.910 billion for the full year 2025 .
• Embedded Segment: This segment generated $950 million in revenue in Q4 2025, up 3% year-over-year, and $3.454 billion for the full year 2025, down 3% year-over-year . Q4 2025 Net Revenue was $950 million, up 3% Y/Y . FY 2025 Net Revenue was $3,454 million, down 3% Y/Y .

Operating Income by Segment (Full Year 2025)

• Data Center Segment: Operating income was $3.603 billion . Operating Income was $3,603 million, up 3% Y/Y .
• Client and Gaming Segment: Operating income was $2.855 billion . Operating Income was $2,855 million, up 141% Y/Y .
• Embedded Segment: Operating income was $1.243 billion . Operating Income was $1,243 million, down 13% Y/Y .
• All other: Operating loss was - $4.007 billion .

Operating Income by Segment (Q4 2025)

• Data Center: Operating Income was $1,752 million, up 51% Y/Y .
• Client & Gaming: Operating Income was $725 million, up 46% Y/Y .
• Embedded: Operating Income was $357 million, down 1% Y/Y .

Cash Flow and Other Metrics

• Net Cash Provided by Operating Activities of Continuing Operations: This was $6.493 billion for the full year 2025 . Cash from operating activities of continuing operations was a record $2.3 billion for Q4 2025 .
• Free Cash Flow: Free cash flow amounted to $5.519 billion for the full year 2025 . Free cash flow was a record $2.1 billion for Q4 2025 .
• Capital Expenditures: Capital expenditures were $974 million for the full year 2025 .
• Adjusted EBITDA: Adjusted EBITDA was $8.521 billion for the full year 2025 .
• Cash, Cash Equivalents and Short-Term Investments: Totaled $10.552 billion for the full year 2025 . Cash, Cash Equivalents and Short-term Investments were $10,552 million for Q4 2025 .
• Total Assets: Total assets were $76.926 billion for the full year 2025 .
• Total Debt: Total debt was $3.222 billion for the full year 2025 . Total Debt was $3,222 million for Q4 2025 .
• Accounts Receivable, Net: Accounts Receivable, Net were $6,315 million for Q4 2025 .
• Inventories: Inventories were $7,920 million for Q4 2025 .

Outlook for First Quarter 2026

Advanced Micro Devices, Inc. expects revenue for the first quarter of 2026 to be approximately $9.8 billion, plus or minus $300 million, including about $100 million from AMD Instinct MI308 sales to China . This midpoint represents an approximate 32% year-over-year growth and a sequential decline of about 5% . The company anticipates a non-GAAP gross margin of approximately 55% and non-GAAP operating expenses of about $3.05 billion .