AMD reported record quarterly revenue of $13.377 billion for Q3 2026, up from $9.25 billion a year earlier. Net income rose 95% to $2.43 billion, while diluted earnings per share increased to $1.46 from $0.75.

The company expects Q4 revenue of approximately $17 billion, plus or minus 3%. At the midpoint, that would represent 66% year-over-year growth and 27% sequential growth. Intel, by comparison, forecast Q4 revenue of $15 billion to $16 billion. If AMD meets its outlook, it would record higher quarterly sales than Intel for the first time.

Data Center was AMD’s largest growth driver in Q3, generating a record $8.55 billion in revenue—97% more than a year earlier. The unit’s operating income climbed 168% to $2.88 billion. AMD linked the gains to demand for its Epyc processors and the launch of Instinct MI455X accelerators, which power its Helios systems.

AMD projects Data Center revenue will reach about $12.8 billion in Q4, supported by the ramp-up of those accelerators and systems. The company also expects server CPU revenue to double in 2027, with Data Center AI accelerator and rack revenue growing by more than two times. It said the segment could account for over 80% of total revenue in 2027, compared with 64% in Q3 2026.

Client and Gaming revenue fell 8% year over year to $3.722 billion. Client CPU sales were $2.95 billion, while gaming revenue declined to $773 million as Microsoft and Sony bought fewer console chips and Radeon graphics card sales remained weak. AMD expects the combined segment to contract by more than 20% sequentially in Q4, citing higher memory prices and weaker PC demand. CEO Lisa Su also said the company is planning for a double-digit percentage decline in PC shipments in 2027.

AMD’s Embedded business grew 29% year over year to $1.11 billion, with stronger demand from aerospace and defense, automotive, communications, and industrial customers. The company expects the segment to grow by double digits sequentially in Q4 and to post double-digit annual revenue growth over the following several years.

Sources: Tom's Hardware.