Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AMD's second quarter of fiscal 2026 was defined by a surge in Data Center revenue, as demand for EPYC processors and Instinct MI350 AI accelerators more than doubled the segment's sales. Gross margin expanded dramatically, reaching 54%, aided by the absence of prior-year inventory charges related to U.S. export controls and a richer product mix. Operating income swung to a $2.0 billion profit, though research and development and marketing expenses each climbed over 30% as the company deepened investments in its AI strategy. Client and Gaming revenue grew modestly, but segment profit declined due to higher go-to-market spend, while Embedded demand firmed across end markets. The quarter also saw AMD disclose landmark multi-gigawatt GPU deployment agreements with OpenAI and Meta, with warrants tied to purchase milestones.
Revenue
$11.54B
+50.11% YoY
EPS (Diluted)
$1.38
+155.56% YoY
Gross Margin
53.8%
+14.0 pts YoY
Operating Income
$1.99B
+1585.07% YoY
Source: SEC XBRL
Advanced Micro Devices (AMD) reported Q2 FY2026 revenue of $11.54B, up 50.1% year over year. Operating margin was 17.3%, against -1.7% a year earlier. AMD's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.66 | 1.63 | Beat +1.8% |
| Mar 2026 | 1.37 | 1.31 | Beat +4.8% |
| Dec 2025 | 1.53 | 1.33 | Beat +14.8% |
| Sep 2025 | 1.20 | 1.18 | Beat +2.1% |
Adjusted (non-GAAP) EPS of $1.66 versus the $1.63 analyst consensus — a +1.8% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.38.
3 reported segments · SEC XBRL
Segment revenue totals $11.54B, which is the $11.54B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure AMD itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Data Center net revenue surged 107% year-over-year to $6.7 billion, fueled by strong demand for AMD EPYC processors and AMD Instinct MI350 Series GPUs. The segment swung to a $2.1 billion operating income, recovering from a prior-year loss that included inventory charges tied to export controls on MI308 GPUs.
Source: 10-Q Item 2 MD&A
Gross margin reached 54%, up from 40% a year ago, primarily due to the absence of inventory and related charges from the U.S. government export control on AMD Instinct MI308 products and a favorable product mix, including higher Data Center revenue.
Source: 10-Q Item 2 MD&A
AMD entered multi-year agreements with OpenAI and Meta, each intending to deploy up to 6 gigawatts of AMD data center GPUs, starting with the MI450 series. The companies received warrants to purchase up to 160 million shares each, vesting upon GPU purchase milestones and stock price/performance conditions.
Source: 10-Q Item 2 MD&A
R&D expenses rose 33% to $2.5 billion, mainly from increased headcount for the AI roadmap, while marketing, general and administrative expenses grew 41% to $1.4 billion due to expanded go-to-market activities supporting revenue growth.
Source: 10-Q Item 2 MD&A
Other income (expense), net soared to $598 million, driven by unrealized gains from the public market listing of non-marketable equity securities during the quarter.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 5 high, 0 medium, 0 low
AMD faces aggressive competition from Intel and Nvidia, which leverage their market positions, financial resources, and proprietary ecosystems to influence customer choices. A recent partnership between Nvidia and Intel to develop new data center and client platforms adds further pricing and design-win pressure.
Source: 10-Q Item 1A Risk Factors
All of AMD's products are manufactured by third-party foundries, primarily TSMC. Any disruption in supply, failure to secure sufficient leading-edge capacity, or inability to transition to advanced process nodes could severely harm production and competitiveness.
Source: 10-Q Item 1A Risk Factors
Customer demand for AI accelerators depends on their ability to secure data center capacity, energy, and capital. Industry-wide memory shortages and rising prices, construction delays, and evolving public perception or regulation of data centers could slow adoption and negatively impact AMD's revenue.
Source: 10-Q Item 1A Risk Factors
AMD relies on a small number of customers for a substantial portion of revenue and receivables. The loss of a key customer or a significant reduction in their demand would materially adversely affect the company's business and financial results.
Source: 10-Q Item 1A Risk Factors
Government actions, including export controls like those that restricted AMD Instinct MI308 GPUs in the prior year, as well as tariffs and trade measures, can limit AMD's ability to sell to certain customers, increase costs, and harm its competitive position in key markets.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 11.54 $B | 7.69 $B | +50.11% |
Cost of Revenue $B | 5.33 $B | 4.63 $B | +15.28% |
Gross Profit $B | 6.20 $B | 3.06 $B | +102.78% |
Operating Income $B | 1.99 $B | -0.13 $B | +1585.07% |
Net Income $B | 2.30 $B | 0.87 $B | +163.42% |
EPS (Basic) $ | 1.40 $ | 0.54 $ | +159.26% |
EPS (Diluted) $ | 1.38 $ | 0.54 $ | +155.56% |
R&D Expense $B | 2.53 $B | 1.89 $B | +33.47% |
SG&A Expense $B | 1.40 $B | 0.99 $B | +41.37% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
AMD delivered a landmark fiscal year 2025, with revenue surging 34.3% to $34.6B and net income more than doubling to $4.3B, driven by strong data center and AI chip demand.
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