AMD Records $1.097 Billion From Revaluation of Customer Warrants in Third Quarter
Key Facts
AMD’s third-quarter 2026 results showed a $1.097 billion change in the fair value of its customer warrant liability, equivalent to $0.66 per share. The company included the item in its reported results; it is tied to quarterly revaluation and changes in AMD’s share price and other valuation assumptions. The figure relates to an accounting liability resulting from remeasurement, not an operating cash charge. The announcement came in a quarter in which the company reported revenue of $13.377 billion, up 45% year over year and 16% from the second quarter. AMD shares closed at $483.90 on November 3, 2026, while Meta shares closed at $621.03 in the same session.
AMD’s net income under generally accepted accounting principles was $2.428 billion, while diluted earnings per share reached $1.46; both figures rose 95% year over year. By comparison, diluted non-GAAP earnings per share was $2.09, up 74% from the year-earlier period. The $0.66-per-share customer warrant revaluation item provides important context for reading earnings per share on the reported accounting basis. The figures show two aspects of the report: strong annual growth in income and profitability, alongside the effect of remeasuring the warrant liability on results. Third-quarter revenue also exceeded the $9.246 billion reported in the same period of 2025 and rose from $11.536 billion in the second quarter of 2026.
The data center segment was the main growth driver, posting record revenue of $8.5 billion, up 97% from the third quarter of the previous year. The segment’s operating income rose to $2.9 billion, compared with $1.1 billion in the year-earlier period. AMD attributed the performance to demand for EPYC processors and the launch of Instinct MI450 processors. Commenting on the results, CEO Lisa Su said the company “delivered a record quarter, with revenue exceeding the high end of our guidance.” The widening gap between the segment’s revenue and its comparable operating income highlights improved activity in the unit linked to the company’s plans to expand its AI systems.
Not all businesses shared in the growth: client and gaming segment revenue was $3.7 billion, down 8% from the third quarter of 2025. Gaming revenue fell 40% year over year to $773 million, while embedded segment revenue rose 29% to $1.1 billion. The results reflect uneven performance across AMD’s businesses, with the data center segment driving the overall increase while a decline in gaming weighed on the client and gaming segment. Overall revenue growth therefore coincided with differing performance across segments, rather than uniform improvement across all businesses. Comparing these units provides a broader picture of the quarter’s revenue mix, alongside profitability and warrant liability figures.
AMD said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on the first Helios systems, equipped with Instinct MI450 processors and sixth-generation EPYC units. This commercial use links the data center expansion cited by the company with its new platform, without changing the nature of the warrant item included in the quarter’s results. Against the backdrop of its partnership with OpenAI, an agreement announced in October 2025 calls for the supply of 6 gigawatts of computing capacity, with the first 1 gigawatt deployment in the second half of 2026. Under the agreement, AMD granted OpenAI a warrant to purchase up to 160 million shares. The agreement combines the supply of computing capacity with the share-linked warrant, explaining the connection between the warrant liability and AMD’s customer relationships, while the company identified its share price and valuation assumptions as drivers of the change in value.
Looking to the next quarter, AMD expects growth to accelerate in the fourth quarter as it expands production of Helios and Venice. Su said the company expects “growth to accelerate further in the fourth quarter as we ramp Helios and Venice.” The company is placing higher production at the center of its outlook for the coming period, following third-quarter revenue that exceeded the high end of its guidance. The outlook also comes as major AI companies have begun running models and workloads on the first Helios systems, according to AMD’s disclosure. This guidance provides a near-term timeframe for tracking revenue growth and production expansion, alongside developments related to computing capacity supply under the OpenAI agreement.