AI Takeaway
AMD delivered a standout Q1 2026 with revenue surging 37.8% YoY to $10.25B and net income nearly doubling to $1.38B, driven by strong data center demand and significant operating leverage.
Revenue
$10.25B
++37.85% YoY
EPS (Basic)
$0.85
++93.18% YoY
Gross Margin
52.8%
++2.60% YoY
Operating Income
$1.48B
++83.13% YoY
Filed · Source: SEC EDGAR 10-Q filing
AMD posted Q1 2026 revenue of $10.25B, up 37.8% YoY from $7.44B, reflecting robust demand across its product portfolio, particularly in data center and AI-related segments.
Source: Source: 10-Q Financial Data, Income Statement
Gross margin improved 254 basis points YoY to 52.8% (from 50.2%), indicating a more favorable product mix and improved pricing power, with gross profit rising 45.0% to $5.42B.
Source: Source: 10-Q Financial Data, Key Ratios
Operating income grew 83.1% YoY to $1.48B, with operating margin expanding 356 basis points to 14.4%, demonstrating that revenue growth is outpacing cost growth and delivering meaningful operating leverage.
Source: Source: 10-Q Financial Data, Income Statement
2 more insights available
Upgrade to unlockSG&A expenses grew 41.4% YoY to $1.25B and R&D expenses grew 38.7% YoY to $2.40B, both outpacing or matching revenue growth. If revenue growth decelerates, this cost structure could compress margins materially.
Source: Source: 10-Q Financial Data, Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.37 versus the $1.31 analyst consensus — a +4.8% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $10.25B | $7.44B | +37.85% |
Cost of Revenue | $4.84B | $3.7B | +30.66% |
Gross Profit | $5.42B | $3.74B | +44.97% |
Operating Income | $1.48B | $806M | +83.13% |
Net Income | $1.38B | $709M | +95.06% |
EPS (Basic) | $0.85 | $0.44 | +93.18% |
EPS (Diluted) | $0.84 | $0.44 | +90.91% |
R&D Expense | $2.4B | $1.73B | +38.72% |
SG&A Expense | $1.25B | $886M | +41.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $79.64B | $71.55B | +11.31% |
Current Assets | $28.63B | $21.59B | +32.57% |
Current Liabilities | $10.51B | $7.7B | +36.39% |
Stockholders' Equity | $64.46B | $57.88B | +11.37% |
Cash & Equivalents | $5.58B | $6.05B | -7.67% |
Long-Term Debt | $2.35B | $3.22B | -26.95% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.96B | $939M | +214.70% |
Investing Cash Flow | $-2.56B | $-357M | -618.49% |
Financing Cash Flow | $-350M | $1.67B | -121.01% |
Share Buybacks | $221M | $749M | -70.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 52.8% | 50.2% | +2.60% |
Operating Margin | 14.4% | 10.8% | +3.56% |
Net Margin | 13.5% | — | — |
ROE | 2.1% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $2.725 | — | — |
Other companies in Semiconductors
AMD reported Q1 2026 diluted EPS of $0.84, up 90.9% from $0.44 in Q1 2025, and revenue of $10.25B, up 37.8% YoY. While specific analyst consensus estimates are not included in the filing, the near-doubling of EPS and strong revenue growth suggest a very strong quarter by any measure.
The key takeaways are: revenue surged 37.8% to $10.25B, gross margin expanded to 52.8%, operating income jumped 83.1% to $1.48B, and operating cash flow tripled to $2.96B. AMD demonstrated strong operating leverage, meaning profits grew significantly faster than revenue.
AMD's Q1 2026 revenue grew 37.8% YoY to $10.25B from $7.44B in Q1 2025, driven by strong demand in data center and AI-related products. This represents one of AMD's strongest quarterly growth rates, with gross profit growing even faster at 45.0% YoY to $5.42B.
AMD's financial health appears strong: it holds $5.59B in cash, has a current ratio of 2.72, long-term debt of only $2.35B against $64.46B in stockholders' equity, and generated $2.96B in operating cash flow in a single quarter. The balance sheet is conservatively leveraged with ample liquidity.
Based on the financial data, key risks include the rapid growth in operating expenses (R&D up 38.7% to $2.40B, SG&A up 41.4% to $1.25B) which could pressure margins if revenue growth slows, a sharp increase in investing outflows to $2.57B suggesting heavy capital deployment, and intense competition in the AI accelerator and data center markets from NVIDIA and Intel.