AMD Revenue Rises 50% to Record $11.5 Billion in Second Quarter
Key Facts
AMD reported record revenue of $11.5 billion in the second quarter of 2026, up 50% year over year, as its data center business remained strong and accounted for 58% of total quarterly revenue, the company said. Results varied sharply by segment: data center revenue more than doubled, while gaming revenue declined. Revenue also rose 13% from the first quarter, from $10.253 billion to $11.536 billion, according to the results presentation filed with the U.S. Securities and Exchange Commission. AMD said strength in data centers supported overall revenue growth. The figures put the quarter’s results in the context of a growing share of the company’s business shifting to data centers.
Data center revenue was $6.7 billion, up 107% year over year, which AMD attributed to "strong demand for EPYC processors and Instinct accelerators." At 58% of company revenue, the segment was its largest business in the quarter and a key driver of the sequential revenue increase. Its more than doubling meant it expanded far faster than the company’s overall 50% growth rate. The comparison also shows that performance was uneven across segments: strong data center results came alongside mixed outcomes in client and gaming. The company’s explanation focused on demand for its products in the segment.
Combined revenue in the client and gaming segments rose 6% year over year to $3.8 billion. That figure combined two different trajectories: client revenue grew 23% to $3.1 billion, while gaming revenue fell 31% to $779 million. AMD attributed the decline in gaming to lower revenue from semi-custom products. Client growth was strong, but did not prevent weakness in gaming from holding the combined segments’ growth to 6%, far below the pace in data centers. The results show that the increase in total revenue was not evenly distributed across the company’s businesses, with client and data center growth alongside a decline in gaming.
The Embedded segment recorded revenue of $977 million, up 19% year over year, and AMD said demand improved across multiple end markets. The performance added another source of growth alongside data centers and client, although the segment remained smaller than data centers, which generated $6.7 billion. On the reported figures, did Embedded growth exceed the company’s overall 50% revenue growth? No; it came in at 19%, below the overall rate. This completes the picture of the quarter’s mix: strong data center growth, improvement in client and Embedded, and a decline in gaming. The company pointed to a broad improvement in Embedded demand across more than one end market.
AMD forecast third-quarter 2026 revenue of about $13 billion, plus or minus $300 million. The midpoint of the forecast range implies year-over-year growth of about 41% and a sequential increase of about 13%; the company forecast a non-GAAP gross margin of about 56%. The outlook puts revenue above the second-quarter level of $11.536 billion, with strong year-over-year growth continuing at a slower pace than the 50% annual increase recorded in the second quarter. Chief Financial Officer Jean Hu said the company expects "data center sales to accelerate in the second half of 2026, supporting stronger overall revenue growth and continued earnings expansion." The company thus linked its outlook for the coming period to data center sales in the second half of the year.