Earnings

🧠 AMD Q3 2025 Earnings — Core Brief Edition

Core-Brief

05 Nov 2025 — 3 min read

Headline: Record quarter on broad-based strength—Data Center and Client lead; AI accelerators ramping now, with MI450/Helios set to drive the next leg in 2026.

Key Metrics (per call’s non-GAAP framing)

Revenue: $9.2B (+36% YoY).
Gross margin: 54.0%.
Operating income: $2.2B (24.0% margin).
Diluted EPS: $1.20 (vs $0.92 a year ago; +30% YoY).
Free cash flow: $1.5B; CFO: $1.8B.
Share repurchase: $89M in Q3 ($1.3B YTD); authorization remaining: $9.4B.
Cash & ST investments: $7.2B; Total debt: $3.2B.

Segment & Strategy Highlights

Data Center (record)

Revenue: $4.3B (+22% YoY; +34% QoQ).
Operating income: $1.1B (25.0% margin, vs 29.0% LY on higher AI R&D).
EPYC: 5th-gen “Turin” adoption accelerated, ~½ of EPYC revenue; prior-gen Genoa demand remained robust.
Cloud: 160+ new EPYC-powered instances launched in the quarter; ~1,350 public EPYC instances now (~+50% YoY). Enterprise EPYC adoption tripled YoY.
Roadmap: Next-gen “Venice” 2nm EPYC in labs, on track for 2026; multiple cloud/OEM platforms already online.

AI Accelerators (Instinct)

MI350 series ramped sharply; broader MI300 deployments across clouds and AI developers.
Partners: Oracle launched public MI355X instances; Crusoe, DigitalOcean, TensorWave, Vultr ramping. IBM/Zyra training on MI300X; Cohere on OCI; Character.AI & Luma AI in production inference.
Software: ROCm 7 launched—up to 4.6× inference and 3× training vs prior release; distributed inference, portability, and new enterprise tools; expanding open-ecosystem contributions.
Next wave (2026): MI400 series + Helios rack-scale (Instinct MI400 + EPYC “Venice” + Pensando NICs), aligned with Meta’s Open Rack spec. ZT Systems team central to design; Sanmina becomes lead manufacturing partner for Helios.

Client & Gaming (record)

Revenue: $4.0B (+73% YoY, +12% QoQ).
- Client (PC): $2.8B (+46% YoY, +10% QoQ). Record desktop CPU sales; strong OEM sell-through; commercial Ryzen up 30%+ YoY with Fortune 500 wins.
- Gaming: $1.3B (+181% YoY, +16% QoQ). Console semi-custom up ahead of holidays; Radeon 9000 family driving sell-out; FSR 4 now in 85+ games (doubling since launch).
Operating income: $867M (21.0% margin, vs 12.0% LY).

Embedded

Revenue: $857M (–8% YoY, +4% QoQ).
Operating income: $283M (33.0% margin, vs 40.0% LY).
New products: Versal Prime Gen2 adaptive SoCs, Versal RF dev platform, Ryzen Embedded 9000.

Product, Tech, AI 🤖

ROCm 7: significant perf uplift; day-zero model/framework support; growing open-source contributions (e.g., Hugging Face, vLLM).
Helios rack-scale: double-wide rack integrating MI400/EPYC/Pensando for training + real-time inference; power/cooling/serviceability designed for next-gen AI DCs.
Flagship deals & programs:
- OpenAI: multi-year agreement to deploy 6 GW of Instinct capacity; first ~1 GW (MI450) online in H2’26; AMD sees potential for well over $100B revenue over the next few years from the broader DC AI opportunity.
- Oracle (OCI): lead MI450 launch partner (tens of thousands of GPUs, 2026–2027+).
- Sovereign/Scientific: UAE (G42/Cisco) MI350X cluster; U.S. DOE Lux AI (MI350 + EPYC + Pensando) early 2026; DOE Discovery supercomputer to use MI430X + EPYC “Venice”.

Balance Sheet & Capital 💼

Record FCF $1.5B; continued buybacks ($89M in Q3, $1.3B YTD).
Cash/Investments $7.2B vs Debt $3.2B.
ZT manufacturing sale to Sanmina closed; reported as discontinued operations and excluded from non-GAAP.

Guidance / Outlook 🔭

Q4’25 revenue: $9.6B ± $0.3B (~+25% YoY, ~+4% QoQ).
Non-GAAP gross margin: 54.5%; Non-GAAP opex: ~$2.8B; Other/interest: ~+$37M; Tax rate: ~13%; Diluted shares: ~1.65B.
Segment color (sequential):
- Data Center: up double digits (servers up strongly; MI350 ramp continues).
- Client vs Gaming: Client up; Gaming down strong double digits (net: segment declines).
- Embedded: up double digits.
China MI308: no Q3 revenue; Q4 outlook excludes MI308 shipments (licenses received on some SKUs; demand still being assessed).

Q&A Color (selected)

CPU demand: Broad, durable uplift tied to AI serving; hyperscalers planning larger CPU build-outs into 2026; strong pull for “Turin” now and early interest in “Venice.”
Supply/power constraints: Industry-wide tightness acknowledged; AMD working jointly with customers and suppliers on power, memory, packaging—positions to grow significantly into H2’26–2027.
ROCm competitiveness: Smoother bring-up for new customers; continued investment to expand libraries and next-gen workloads.
China MI308: dynamic; AMD has WIP inventory and will update when demand/licensing clearer.
Customer concentration: Targeting multiple large-scale customers in MI450 era; supply chain sized for breadth, not a single anchor.

Bottom Line

AMD delivered a record quarter with momentum across Data Center, Client, and Gaming. AI accelerators are scaling now, while MI450 + Helios and 2nm “Venice” EPYC set up a deeper 2026–2027 cycle. Capital discipline (FCF, buybacks) continues as AMD leans into the AI compute super-cycle.