Advanced Micro Devices (AMD) reported net income of $2.4 billion ($2,428 million) in the third quarter of 2026, up 95% from $1.2 billion ($1,243 million) in 3Q25. Revenue was $13.4 billion ($13,377 million), growth of 45% versus the same period a year earlier and 16% over 2Q26. Diluted earnings per share (EPS) were $1.46, compared with $0.75 a year earlier.
Operating income was $2.8 billion ($2,832 million), up 123%, with an operating margin of 21%. Gross margin was 54%, versus 52% in 3Q25. On an adjusted basis (non-GAAP, which excludes items the company considers non-recurring, such as stock-based compensation and amortization of acquisition-related intangibles), net income was $3.5 billion ($3,471 million) and adjusted EPS was $2.09, up 74%. Adjusted operating income totaled $3.9 billion and adjusted gross margin was 56%.
The Data Center segment had revenue of $8.5 billion, up 97%, driven by EPYC processors and the launch of the Instinct MI450 GPUs. The Client and Gaming segment totaled $3.7 billion, down 8%: the Client business rose 7% to $2.9 billion, and Gaming fell 40% to $773 million, due to lower semi-custom and graphics card revenue. The Embedded segment generated $1.1 billion in revenue, up 29%.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, with other adjustments) was $4.2 billion. Free cash flow was $554 million, versus $1.5 billion in 3Q25. Cash and short-term investments totaled $15.8 billion, and total debt reached $7.1 billion, including the $4.75 billion senior notes issuance completed in August. The company also announced agreements to acquire World Labs and Taalas.
For the fourth quarter of 2026, AMD projects revenue of about $17 billion, plus or minus 3%, which represents growth of approximately 66% over the prior year. Expected adjusted gross margin is about 55%.
