By now, you should have had the opportunity to review a copy of our earnings press release and accompanying slides. 2025 was a defining year for AMD, with record revenue, net income, and free cash flow driven by broad-based demand for high-performance computing and AI products. Looking at our fourth quarter, fourth quarter revenue grew 34% year-over-year to $10.3 billion, led by record EPYC, Ryzen, and Instinct processor sales. Net income increased 42% to a record $2.5 billion, and free cash flow nearly doubled year-over-year to a record $2.1 billion.
For the full year, revenue grew 34% to $34.6 billion, and we added more than $7.6 billion of data center segment and client revenue. Turning to our fourth quarter segment results, data center segment revenue increased 39% year-over-year to a record $5.4 billion, led by accelerating Instinct MI350 series GPU deployments and server share gains. In server, adoption of 5th-gen EPYC Turin CPUs accelerated in the quarter, accounting for more than half of the total server revenue. As a result, we had record server CPU sales to both cloud and enterprise customers in the quarter and exited the year with record share.
In cloud, hyperscaler demand was very strong as North American customers expanded deployments. EPYC-powered public cloud offerings grew significantly in the quarter, with AWS, Google, and others launching more than 230 new AMD instances. In the enterprise, we are seeing a meaningful shift in EPYC adoption driven by our leadership performance, expanded platform availability, broad software enablement, and increased go-to-market programs. As a result, the number of large businesses deploying EPYC on-prem more than doubled in 2025, and we exited the year with record server sell-through.
| Metric | Period | Current guidance |
|---|---|---|
| Total revenue | Q1 2026 | ~$9.8B ± $300M (incl. ~$100M MI308 China), up ~32% YoY at midpoint, down ~5% sequentially |
| Non-GAAP gross margin | Q1 2026 | ~55% (up 130 bps YoY) |
| Non-GAAP operating expense | Q1 2026 | ~$3.05B |
| Non-GAAP other net income | Q1 2026 | ~$35M |
| Non-GAAP effective tax rate | Q1 2026 | 13% |
| Diluted share count | Q1 2026 | ~1.65B shares |
| MI308 China revenue | Q1 2026 | ~$100M, with no additional China revenue forecast beyond that |
| Semi-custom revenue | FY2026 | Expected to decline by a significant double-digit percentage (7th year of console cycle) |
| Data center segment revenue | FY2026 / 3-5 yr | Long-term target of >60% annual growth is possible in 2026; AI business scaling to tens of billions by 2027 |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +34% ($10.3B) | Broad-based demand led by record EPYC, Ryzen, and Instinct sales; up 11% sequentially. |
| Data center segment | +39% ($5.4B) | Accelerating MI350 series Instinct deployments and server share gains, with Turin >half of server revenue; up 24% sequentially. |
| Client and gaming segment | +37% ($3.9B) | Strong demand for leadership Ryzen processors, partially offset by lower semi-custom; down 3% sequentially. |
| Client business | +34% ($3.1B) | Strong channel and PC OEM demand plus market share gains; desktop CPU record for a fourth straight quarter; up 13% sequentially. |
| Gaming business | +50% ($843M) | Higher semi-custom revenue and strong Radeon RX 9000 GPU demand over the holidays; down 35% sequentially on lower semi-custom. |
| Embedded segment | +3% ($950M) | Improving end-customer demand led by test, measurement, and emulation plus aerospace; up 11% sequentially. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Instinct MI350/MI355 ramp | — | Record Instinct GPU revenue in Q4 led by MI350 series ramp; 8 of the top 10 AI companies now use Instinct in production; MI355 done well and continues ramping in 1H26. | — |
| MI400/MI450 series and Helios | — | Described as a major inflection point; second-half 2026 launch on track, revenue starting in Q3 and ramping significant volume in Q4 into 2027; multiple OEMs (HPE, Lenovo) to offer Helios racks. | — |
| OpenAI partnership | — | Multi-generation deal to deploy 6 GW of Instinct GPUs is on schedule to start in 2H26; active discussions with additional customers for at-scale multi-year MI450/Helios deployments. | — |
| China / MI308 export controls | — | ~$390M of MI308 China revenue in Q4 (from a license approved on early-2025 orders, not in guidance); only ~$100M forecast for Q1 and nothing beyond given the dynamic situation; MI325 licenses submitted. | — |
| EPYC server franchise / Venice | — | Record server CPU sales and record exit share; hyperscalers launched >500 AMD instances in 2025 (nearly 1,600 EPYC cloud instances, +50% YoY); next-gen Venice launching later in 2026 with high customer pull. | — |
| ZT Systems | — | Sale of ZT Systems manufacturing business to Sanmina closed in late October; results reported as discontinued operations and excluded from non-GAAP financials. | — |
| OpEx and operating leverage | OpEx grew as revenue rose in 2025 | OpEx up 42% YoY to $3.0B in Q4; management expects leverage in 2026 with OpEx growing slower than revenue, especially as 2H revenue inflects. | — |
| Gross margin trajectory | — | Favorable mix (Turin, MI355, richer client stack, embedded recovery) supports margins; each Instinct generation should carry higher margin long-term though early ramps dilute; MI450 ramp in Q4 to be mix-driven. | — |