AMD Q3 2025 Earnings: Record Revenue on AI and PC Chip Demand
AMD posted record quarterly revenue in Q3 2025 as AI, server, and PC chip demand surged, with management guiding to further growth next quarter.
| Q3 2025 | Reported |
|---|---|
| EPS | $0.75 |
| Revenue | $9.25B |
Figures as reported by the company to the SEC for the quarter ended September 27, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue hit a record $9.2 billion for the quarter, up sharply from a year earlier as demand grew across AMD’s data-center, PC, and gaming chip businesses.
- Data center revenue reached a record $4.3 billion, up 22% year over year, driven by continued shipments of AMD’s newest AI accelerator chips (the Instinct MI350 series) and growing market share for its server processors.
- Client and gaming products (chips for PCs and game consoles) saw revenue jump 73% year over year to $4.0 billion, with PC chip sales up 46% and gaming chip sales up 181%, reflecting strong demand for AMD’s newest processors and graphics chips.
- Embedded chip revenue, used in industrial and networking gear, fell 8% year over year to $857 million — the one soft spot in an otherwise growing quarter, as customers worked through existing inventory.
- Looking at the trailing twelve months, AMD’s gross margin — the share of each sales dollar left after direct production costs — ran around 53%, and per-share profit growth accelerated sharply versus a year ago, reflecting the increasing share of higher-margin AI and server chips in AMD’s overall sales mix.
- For the current quarter (Q4 2025), AMD guided revenue to roughly $9.6 billion, plus or minus $300 million, and said it expects continued growth in data center, PC, and embedded chip sales, alongside gaming chip sales declining.
- CEO Lisa Su called it “an outstanding quarter with record revenue and profitability reflecting broad-based demand across our data center AI, server, and PC businesses,” adding that “the demand for compute has never been greater.”
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $9.2B | $6.8B | +35.6% |
| Net income | $1.2B | $771M | +61.2% |
| Free cash flow | $1.9B | $496M | +283.3% |
| Diluted EPS | $0.75 | $0.47 | +59.6% |
| Gross margin | 51.7% | 50.1% | +1.6 pts |
| Operating margin | 13.7% | 10.6% | +3.1 pts |
| Net margin | 13.4% | 11.3% | +2.1 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
Each company's quarter ending in calendar Q3 '25, as reported to the SEC. A peer that reported no revenue figure for that quarter is left out.
How the stock took it
Advanced Micro Devices, Inc. closed at $250.05 on Nov 4, 2025, the last session before the report, and at $237.70 on Nov 6, 2025, the first session after it — -4.9% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · earnings call