By now, you should have had the opportunity to review a copy of our earnings press release and the accompanying slides. We delivered an outstanding quarter with record revenue and profitability reflecting broad-based demand across our data center AI, server, and PC businesses. Net income rose 31% and free cash flow more than tripled, led by record EPYC, Ryzen, and Instinct processor sales. Our record third-quarter performance marks a clear step up in our growth trajectory as a combination of our expanding compute franchise and rapidly scaling data center AI business drives significant revenue and earnings growth.
Turning to our segments, data center segment revenue increased 22% year-over-year to a record $4.3 billion, led by the ramp of our Instinct MI350 series GPUs and server share gains. Server CPU revenue reached an all-time high as adoption of 5th Gen EPYC Turin processors accelerated rapidly, accounting for nearly half of overall EPYC revenue in the quarter. In cloud, we had record sales as hyperscalers expanded EPYC CPU deployments to power both their own first-party services and public cloud offerings. There are now more than 1,350 public EPYC cloud instances available globally, a nearly 50% increase from a year ago.
Adoption of EPYC in the cloud by large businesses more than tripled year-over-year, as our on-prem share gains are driving increased demand from enterprise customers for AMD cloud instances to support hybrid compute. We expect cloud demand to remain very strong as hyperscalers are significantly increasing their general-purpose compute capacity as they scale their AI workloads. Customer pull and engagement for Venice are the strongest we have seen, reflecting our competitive positioning and the growing demand for more data center compute. Revenue grew year-over-year, driven by the sharp ramp of MI350 series GPU sales and broader MI300 series deployments.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | Q4 2025 | Approximately $9.6 billion, ±$300 million (~25% YoY growth at midpoint, ~4% sequentially); excludes any MI308 China revenue |
| Non-GAAP gross margin | Q4 2025 | Approximately 54.5% |
| Non-GAAP operating expenses | Q4 2025 | Approximately $2.8 billion |
| Net interest and other | Q4 2025 | Gain of approximately $37 million |
| Non-GAAP effective tax rate | Q4 2025 | 13% |
| Diluted share count | Q4 2025 | Approximately 1.65 billion shares |
| Segment growth mix | Q4 2025 | Double-digit growth in Data Center (strong server + continued MI350 ramp); client up but gaming down strong double digits; double-digit growth in Embedded |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +36% ($9.2B) | Broad-based demand across data center AI, server, and PC businesses; record EPYC, Ryzen, and Instinct sales |
| Data Center revenue | +22% ($4.3B) | Ramp of Instinct MI350 series GPUs and 5th Gen EPYC server share gains (also +34% sequentially) |
| Client and Gaming revenue | +73% ($4.0B) | Strong demand for latest client and graphics processors plus stronger console gaming products |
| Client revenue | +46% ($2.8B) | Record Ryzen processor sales and a richer product mix |
| Gaming revenue | +181% ($1.3B) | Higher semi-custom revenue and strong demand for Radeon GPUs |
| Embedded revenue | -8% ($857M) | Soft end-market demand and mix, though up 4% sequentially as certain end markets strengthened |
| Diluted EPS | +30% ($1.20 vs $0.92) | Higher revenue and profitability across the business |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| MI308 China export controls | — | No MI308 China revenue recognized in Q3 or assumed in Q4 guide; some licenses received but demand environment still being worked with customers | — |
| MI350 / MI355X Instinct ramp | — | Sharp MI350 series ramp underway; Oracle first hyperscaler to offer MI355X instances; neocloud providers (Crusoe, DigitalOcean, TensorWave, Vultr) ramping; expected to keep ramping into H1 2026 | — |
| MI400 / MI450 series and Helios rack | — | Launching in 2026; Helios integrates MI400 GPUs, Venice EPYC CPUs, and Pensando NICs; strong OCP reception; MI450 online H2 2026 with a sharper ramp | — |
| OpenAI partnership | — | New multi-year 6 GW Instinct deal (first GW MI450 in H2 2026); potential for well over $100 billion in revenue over the next few years; includes warrant structure and joint Triton/software work | — |
| EPYC server / general-purpose compute | — | Turin ramping fast to ~half of EPYC revenue; hyperscalers forecasting significant CPU builds into 2026 as AI spawns general-purpose compute; demand seen as durable and multi-quarter; Venice (2nm) on track for 2026 | — |
| ROCm open software stack | — | ROCm 7 launched with up to 4.6x higher inference and 3x higher training vs ROCm 6; day-zero model support; contributions from Hugging Face, vLLM, SGLang; strengthened by large-customer collaboration | — |
| ZT Systems | — | ZT team is central to Helios development; ZT manufacturing business sold to Sanmina last week (reported as discontinued operations), with Sanmina now lead manufacturing partner for Helios | — |
| AI silicon TAM | ~$500 billion | Management sees the AI compute TAM going up and will provide updated, larger numbers at Financial Analyst Day | — |