AMD Smashes Records With $10.3B Q4 as AI and Data Center Demand Surge

According to AMD’s financial report, the company achieved a GAAP gross margin of 54%, with operating income of $1.8 billion, net income of $1.5 billion, and diluted earnings per share of $0.92 for Q4.

On a non-GAAP basis, AMD delivered even stronger results. Gross margin reached 57%, operating income hit a record $2.9 billion, net income climbed to a record $2.5 billion, and diluted EPS reached a record $1.53.

AMD noted that Q4 results included a $360 million release of previously reserved AMD Instinct MI308 inventory. The quarter also included approximately $390 million in Instinct MI308 revenue to China. Excluding both items, Q4 non-GAAP gross margin would have been around 55%.

Full-year 2025 sets new records for AMD

For the full year 2025, AMD posted record revenue of $34.6 billion. GAAP gross margin for the year came in at 50%, with operating income of $3.7 billion, net income of $4.3 billion, and diluted EPS of $2.65.

On a non-GAAP basis, full-year gross margin reached 52%, operating income climbed to a record $7.8 billion, net income rose to a record $6.8 billion, and diluted EPS reached a record $4.17.

AMD CEO Lisa Su described 2025 as a defining year for the company, citing strong demand for high-performance CPUs and data center AI platforms. During the earnings discussion, she also reaffirmed the shipping window for the Steam Machine and addressed ongoing development work related to the next-generation Xbox.

Segment highlights show broad-based growth

The Data Center segment delivered Q4 revenue of $5.4 billion, representing 39% year-over-year growth. AMD attributed this performance to strong adoption of EPYC server CPUs and Instinct accelerators. Full-year Data Center revenue reached $16.6 billion, up 32% year-over-year.

The Client and Gaming segment reported Q4 revenue of $3.9 billion, up 37% year-over-year. Client revenue totaled $3.1 billion, increasing 34% on the back of strong Ryzen demand and continued market share gains. Gaming revenue reached $843 million, up 50%, driven by semi-custom SoCs and Radeon GPU sales. Full-year Client and Gaming revenue reached $14.6 billion, marking a 51% increase year-over-year.

The Embedded segment delivered Q4 revenue of $950 million, up 3% year-over-year. For the full year, Embedded revenue declined 3% to $3.5 billion, reflecting earlier inventory adjustments across end markets.

Outlook for Q1 2026

Looking ahead, AMD expects Q1 2026 revenue of approximately $9.8 billion, plus or minus $300 million. The forecast includes about $100 million in Instinct MI308 sales to China. At the midpoint, the outlook implies 32% year-over-year growth, alongside a 5% sequential decline from Q4 levels.

AMD also expects a non-GAAP gross margin of around 55% in the first quarter of 2026.

In other recent developments, AMD has launched the Ryzen 7 9850X3D desktop processor and unveiled the Kintex UltraScale+ Gen 2 FPGA family, further expanding its product portfolio.

Via TechPowerUp