AMD Reports 36% Revenue Growth to $9.246 Billion in Latest Quarter

Advanced Micro Devices, Inc. (AMD) reported significant financial growth in its latest quarterly results, with net revenue reaching $9.246 billion for the three months ended September 27, 2025, a 36% increase from $6.819 billion in the same period last year. For the nine months, revenue also rose to $24.369 billion, up from $18.127 billion. The company's gross profit for the quarter was $4.780 billion, yielding a gross margin of 52%, compared to 50% in the prior year. Operating income surged to $1.270 billion, up from $724 million, while net income increased to $1.243 billion from $771 million year-over-year.

The substantial revenue growth was primarily driven by strong demand in the Client and Gaming segments, particularly for AMD Ryzen processors and Radeon gaming GPUs, as well as robust sales of 5th generation AMD EPYC processors in the Data Center segment. The Client and Gaming segment alone saw a 73% increase in revenue to $4.048 billion for the quarter, while the Data Center segment contributed $4.341 billion, a 22% increase. However, the Embedded segment experienced a decline, with revenue falling to $857 million, down 8% from the previous year.

Strategically, AMD completed the acquisition of ZT Group Int’l, Inc. (ZT Systems) on March 31, 2025, for a total consideration of $4.4 billion, which is expected to enhance AMD's capabilities in delivering AI solutions and infrastructure. Following the acquisition, AMD sold the ZT Manufacturing Business to Sanmina Corporation for $2.4 billion in cash and stock, with potential additional cash consideration of up to $450 million. The company also issued a warrant to OpenAI for the purchase of up to 160 million shares, contingent on certain performance milestones.

Operationally, AMD's cash, cash equivalents, and short-term investments totaled $7.2 billion as of September 27, 2025, an increase from $5.1 billion at the end of the previous fiscal year. The company generated $5.1 billion in cash from operating activities during the nine months, while returning $1.3 billion to shareholders through stock repurchases. The workforce was reduced by approximately 4% as part of a restructuring plan initiated in late 2024, with the company reporting a headcount of 1,628 employees as of the latest quarter.

Looking ahead, AMD anticipates continued strong demand for its products, particularly in the AI and data center markets, despite facing challenges such as U.S. export restrictions impacting certain product lines. The company expects that its cash reserves and operational cash flows will be sufficient to support its strategic initiatives and commitments in the coming year.