AMD: Advanced Micro Devices Inc. Innovation and Excellence
On February 3, 2026, Advanced Micro Devices, Inc. (AMD) reported its impressive financial results for the fourth quarter and full year of 2025. The fourth quarter saw a record revenue of $10.3 billion, reflecting a 34% increase compared to the previous year. The company achieved a gross margin of 54%, with an operating income of $1.8 billion and a net income of $1.5 billion. Diluted earnings per share (EPS) were reported at $0.92.
Using non-GAAP figures, AMD’s gross margin improved to 57%, with record operating income of $2.9 billion and a net income of $2.5 billion for the fourth quarter. The diluted EPS based on these measures climbed to a record $1.53.
Full-Year Financial Performance
For the complete year of 2025, AMD reported record revenue of $34.6 billion, an increase of 34% year-over-year. This financial success was supported by a gross margin of 50%, operating income of $3.7 billion, and net income of $4.3 billion. Diluted EPS for the year stood at $2.65. On a non-GAAP basis, revenue was the same, with an operating income of $7.8 billion and a net income of $6.8 billion, leading to a diluted EPS of $4.17.
Leadership Comments
Dr. Lisa Su, AMD’s chair and CEO, emphasized the company’s momentum heading into 2026, noting strong demand for high-performance EPYC and Ryzen CPUs and substantial growth in data center AI operations. Similarly, Jean Hu, AMD’s executive vice president and CFO, highlighted the company’s ability to generate profitable growth and its plans for strategic investments to bolster future growth.
Key Financial Metrics
| Metric | Q4 2025 | Q4 2024 | Change (%) | 2025 | 2024 | Change (%) |
|---|---|---|---|---|---|---|
| Revenue ($M) | 10,270 | 7,658 | 34% | 34,639 | 25,785 | 34% |
| Operating Income ($M) | 1,752 | 871 | 101% | 3,694 | 1,900 | 94% |
| Net Income ($M) | 1,511 | 482 | 213% | 4,335 | 1,641 | 164% |
| Diluted EPS | 0.92 | 0.29 | 217% | 2.65 | 1.00 | 165% |
Segment Performance
The Data Center segment generated record revenue of $5.4 billion in the fourth quarter, marking a 39% rise from the previous year. Full-year revenue for this segment stood at $16.6 billion, up 32% year-over-year. The Client and Gaming segment achieved fourth-quarter revenue of $3.9 billion, up 37% from last year.
- Client revenue: $3.1 billion (up 34% YoY)
- Gaming revenue: $843 million (up 50% YoY)
For the entire year, Client and Gaming segment revenue reached $14.6 billion, an increase of 51% over the previous year.
Looking Ahead
AMD anticipates a revenue of approximately $9.8 billion for the first quarter of 2026, including about $100 million from AMD Instinct MI308 sales to China. This projection indicates approximately 32% year-over-year growth, despite a sequential decline of around 5%. The predicted non-GAAP gross margin for this quarter is expected to be around 55%.
AMD’s ongoing innovations in high-performance computing and AI solutions underscore its commitment to excellence in the tech industry as it heads into 2026.
