AMD (NASDAQ: AMD) Q3 2025 Financial Results Summary
Release Date: November 4, 2025
AMD (NASDAQ: AMD) reported its financial results for the third quarter of 2025, achieving record revenue and profitability. The results highlighted strong demand across its product segments, particularly for EPYC and Ryzen processors, as well as AI accelerators.
- Financial Performance Highlights:
- Revenue:
- $9.2 billion in Q3 2025, up 36% from $6.8 billion in Q3 2024 and up 20% from $7.7 billion in Q2 2025.
- Gross Profit:
- $4.8 billion, a 40% increase year-over-year from $3.4 billion in Q3 2024, and a 56% increase from $3.1 billion in Q2 2025.
- Gross Margin:
- 52%, up 2 percentage points from 50% in Q3 2024, and up 12 percentage points from 40% in Q2 2025.
- Operating Expenses:
- $3.5 billion, up 30% year-over-year from $2.7 billion in Q3 2024, and up 10% from $3.2 billion in Q2 2025.
- Operating Income:
- $1.3 billion, achieving a 75% growth compared to $724 million in Q3 2024, and transitioned from a loss of $134 million in Q2 2025, reflecting a 1,048% increase.
- Operating Margin:
- 14%, up 3 percentage points from 11% a year ago and up 16 percentage points from a -2% margin in Q2 2025.
- Net Income:
- $1.2 billion, up 61% from $771 million in Q3 2024 and up 43% from $872 million in Q2 2025.
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Diluted Earnings per Share:
- $0.75, a 60% increase compared to $0.47 in Q3 2024 and up 39% from $0.54 in Q2 2025.
-
Non-GAAP Results:
- Non-GAAP Revenue: $9.2 billion, reflecting the same year-over-year and quarter-over-quarter growth rates as GAAP revenue.
- Non-GAAP Gross Margin: 54%, unchanged from the previous year, and up 11 percentage points from 43% in Q2 2025.
- Non-GAAP Operating Income: $2.2 billion, up 30% from $1.7 billion in Q3 2024, and up 149% from $897 million in Q2 2025.
- Non-GAAP Net Income: $2 billion, up 31% from $1.5 billion a year ago and up 152% from $781 million in Q2 2025.
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Non-GAAP Diluted Earnings per Share: $1.20, up 30% from $0.92 in Q3 2024, and up 150% from $0.48 in Q2 2025.
-
Segment Performance:
- Data Center Segment:
- Revenue reached $4.3 billion, a 22% year-over-year increase mainly driven by demand for AMD EPYC processors.
- Client and Gaming Segment:
- Generated $4 billion, a significant 73% year-over-year growth, with client revenue at $2.8 billion (up 46%) and gaming revenue at $1.3 billion (up 181%).
-
Embedded Segment:
- Revenue of $857 million, which represents an 8% decrease compared to last year.
-
Recent Highlights:
- AMD established partnerships with major players:
- OpenAI for AI infrastructure deployment.
- Oracle for the first AI supercluster based on AMD technology.
- Launched Helios rack scale design supporting new specifications.
- Introduced new supercomputers with advanced AI capabilities.
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Released noteworthy product updates including high-performance gaming processors.
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Outlook for Q4 2025:
- Expected revenue to be approximately $9.6 billion, with a growth estimate of 25% year-over-year and a 4% sequential increase.
- Anticipated non-GAAP gross margin around 54.5%.
Dividend and Share Repurchase
- AMD did not declare a quarterly dividend during this reporting period.
- The company repurchased $89 million in common stock during the third quarter 2025.
In summary, AMD’s Q3 2025 financial results exhibit a strong upward trajectory in revenue and profitability, largely attributed to its growth in data center and gaming segments, reinforcing its competitive position in a demanding marketplace.
| Three Months Ended | September 27, 2025 | June 28, 2025 | September 28, 2024 | Nine Months Ended | September 27, 2025 | September 28, 2024 |
|---|---|---|---|---|---|---|
| Net revenue | $9,246 | $7,685 | $6,819 | $24,369 | $18,127 | |
| Cost of sales | $4,206 | $4,366 | $3,167 | $12,023 | $8,590 | |
| Amortization of acquisition-related | $260 | $260 | $233 | $771 | $694 | |
| intangibles | ||||||
| Total cost of sales | $4,466 | $4,626 | $3,400 | $12,794 | $9,284 | |
| Gross profit | $4,780 | $3,059 | $3,419 | $11,575 | $8,843 | |
| Gross margin | 52% | 40% | 50% | 47% | 49% | |
| Research and development | $2,139 | $1,894 | $1,636 | $5,761 | $4,744 | |
| Marketing, general and administrative | $1,069 | $991 | $707 | $2,946 | $1,954 | |
| Amortization of acquisition-related | $302 | $308 | $352 | $926 | $1,116 | |
| intangibles | ||||||
| Total operating expenses | $3,510 | $3,193 | $2,695 | $9,633 | $7,814 | |
| Operating income (loss) | $1,270 | $-134 | $724 | $1,942 | $1,029 | |
| Interest expense | $-37 | $-38 | $-23 | $-95 | $-73 | |
| Other income (expense), net | $82 | $98 | $36 | $219 | $144 | |
| Income from continuing operations before | $1,315 | $-74 | $737 | $2,066 | $1,100 | |
| income taxes and equity income | ||||||
| Income tax provision (benefit) | $153 | $-834 | $-27 | $-558 | $-38 | |
| Equity income in investee | $10 | $8 | $7 | $25 | $21 | |
| Income from continuing operations, net | $1,172 | $768 | $771 | $2,649 | $1,159 | |
| of tax | ||||||
| Income from discontinued operations, net | $71 | $104 | $— | $175 | $— | |
| of tax | ||||||
| Net income | $1,243 | $872 | $771 | $2,824 | $1,159 | |
| Earnings per share: | ||||||
| Earnings from continuing operations – | $0.72 | $0.47 | $0.48 | $1.63 | $0.72 | |
| basic | ||||||
| Earnings from discontinued operations – | $0.04 | $0.07 | $— | $0.11 | $— | |
| basic | ||||||
| Basic earnings per share | $0.76 | $0.54 | $0.48 | $1.74 | $0.72 | |
| Earnings from continuing operations – | $0.71 | $0.47 | $0.47 | $1.62 | $0.71 | |
| diluted | ||||||
| Earnings from discontinued operations – | $0.04 | $0.07 | $— | $0.11 | $— | |
| diluted | ||||||
| Diluted earnings per share | $0.75 | $0.54 | $0.47 | $1.73 | $0.71 | |
| Shares used in per share calculation | ||||||
| Basic | 1,626 | 1,623 | 1,620 | 1,623 | 1,619 | |
| Diluted | 1,641 | 1,630 | 1,636 | 1,632 | 1,638 |
| September 27, 2025 | December 28, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $4,808 | $3,787 |
| Short-term investments | $2,435 | $1,345 |
| Accounts receivable, net | $6,201 | $6,192 |
| Inventories | $7,313 | $5,734 |
| Assets held for sale | $3,990 | $— |
| Prepaid expenses and other current | $2,253 | $1,991 |
| assets | ||
| Total current assets | $27,000 | $19,049 |
| Property and equipment, net | $2,205 | $1,802 |
| Goodwill | $25,083 | $24,839 |
| Acquisition-related intangibles, net | $17,250 | $18,930 |
| Deferred tax assets | $633 | $688 |
| Other non-current assets | $4,720 | $3,918 |
| Total Assets | $76,891 | $69,226 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $3,483 | $2,466 |
| Accrued liabilities | $5,112 | $4,260 |
| Current portion of long-term debt, net | $873 | $— |
| Liabilities held for sale | $1,908 | $— |
| Other current liabilities | $324 | $555 |
| Total current liabilities | $11,700 | $7,281 |
| Long-term debt | $2,347 | $1,721 |
| Long-term operating lease liabilities | $650 | $491 |
| Deferred tax liabilities | $326 | $349 |
| Other long-term liabilities | $1,078 | $1,816 |
| Stockholders’ equity: | ||
| Capital stock: | ||
| Common stock, par value $0.01 | $17 | $17 |
| Additional paid-in capital | $62,657 | $61,362 |
| Treasury stock, at cost | $-7,059 | $-6,106 |
| Retained earnings | $5,188 | $2,364 |
| Accumulated other comprehensive loss | $-13 | $-69 |
| Total stockholders’ equity | $60,790 | $57,568 |
