| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||
| December 27, 2025 |
September 27, 2025 |
December 28, 2024 |
December 27, 2025 |
December 28, 2024 |
||||||||||||||||||||||||||||||||||||
| GAAP net income / earnings per share | $ | 1,511 | $ | 0.92 | $ | 1,243 | $ | 0.75 | $ | 482 | $ | 0.29 | $ | 4,335 | $ | 2.65 | $ | 1,641 | $ | 1.00 | ||||||||||||||||||||
| Stock-based compensation | 486 | 0.29 | 419 | 0.26 | 339 | 0.21 | 1,638 | 1.00 | 1,407 | 0.86 | ||||||||||||||||||||||||||||||
| Amortization of acquisition-related intangibles | 557 | 0.34 | 562 | 0.34 | 584 | 0.36 | 2,254 | 1.38 | 2,394 | 1.46 | ||||||||||||||||||||||||||||||
| Acquisition-related and other costs(1) | 50 | 0.03 | 43 | 0.03 | 46 | 0.03 | 231 | 0.14 | 187 | 0.11 | ||||||||||||||||||||||||||||||
| Inventory loss at (recovery from) contract manufacturer(2) | — | — | (67 | ) | (0.04 | ) | — | — | (67 | ) | (0.04 | ) | 65 | 0.04 | ||||||||||||||||||||||||||
| Loss contingency on legal matter | 9 | 0.01 | 12 | 0.01 | — | — | 21 | 0.01 | — | — | ||||||||||||||||||||||||||||||
| Gains on long-term investments, net | (280 | ) | (0.17 | ) | (26 | ) | (0.02 | ) | — | — | (365 | ) | (0.22 | ) | 2 | — | ||||||||||||||||||||||||
| Equity income in investee | (1 | ) | — | (10 | ) | — | (12 | ) | (0.01 | ) | (26 | ) | (0.02 | ) | (33 | ) | (0.02 | ) | ||||||||||||||||||||||
| Restructuring charges(4) | — | — | — | — | 186 | 0.11 | — | — | 186 | 0.11 | ||||||||||||||||||||||||||||||
| Release of reserves for uncertain tax positions(5) | — | — | — | — | — | — | (853 | ) | (0.52 | ) | — | — | ||||||||||||||||||||||||||||
| Income tax provision | 78 | 0.04 | (140 | ) | (0.09 | ) | 152 | 0.10 | (271 | ) | (0.17 | ) | (429 | ) | (0.25 | ) | ||||||||||||||||||||||||
| Loss (Income) from discontinued operations, net of tax(6) | 109 | 0.07 | (71 | ) | (0.04 | ) | — | — | (66 | ) | (0.04 | ) | — | — | ||||||||||||||||||||||||||
| Non-GAAP net income / earnings per share | $ | 2,519 | $ | 1.53 | $ | 1,965 | $ | 1.20 | $ | 1,777 | $ | 1.09 | $ | 6,831 | $ | 4.17 | $ | 5,420 | $ | 3.31 | ||||||||||||||||||||
| (1 | ) | Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges, and workforce rebalancing charges. | |
| (2 | ) | Inventory loss at (recovery from) contract manufacturer is related to losses due to an incident at a third-party contract manufacturing facility and the corresponding recovery. | |
| (3 | ) | Effective first quarter of 2025, licensing gain is reclassified against Marketing, general and administrative expenses as the amounts were immaterial. | |
| (4 | ) | Restructuring charges are related to the 2024 Restructuring Plan which comprised of employee severance charges and non-cash asset impairments. | |
| (5 | ) | Release of reserves for uncertain tax positions pertains to the reasonable cause relief related to dual consolidated losses approved by the IRS in the second quarter of 2025. | |
| (6 | ) | Loss (Income) from discontinued operations relates to ZT Systems’ manufacturing business which was divested in the fourth quarter of 2025. |
| RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES | |||
| (Millions) (Unaudited) | |||
| Three Months Ended | |||
| December 27, 2025 |
|||
| GAAP gross profit | $ | 5,577 | |
| GAAP gross margin | 54 | % | |
| Stock-based compensation, amortization of acquisition-related intangibles, acquisition-related and other costs | 278 | ||
| Impact from the release of inventory and related charges associated with U.S. export restrictions and AMD Instinct MI308 revenue to China | (430 | ) | |
| Adjusted Non-GAAP gross profit | $ | 5,425 | |
| Adjusted Non-GAAP gross margin | 55 | % | |
About AMD
AMD (NASDAQ: AMD) drives innovation in high-performance and AI computing to solve the world’s most important challenges. Today, AMD technology powers billions of experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. With a broad portfolio of AI-optimized CPUs, GPUs, networking and software, AMD delivers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing. Learn more at www.amd.com.
Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as, AMD entering 2026 with strong momentum across its business; the accelerating adoption of high-performance EPYC and Ryzen CPUs and the rapid scaling of the data center AI franchise; the features, functionality, performance, availability, timing and expected benefits of future AMD products; and AMD’s expected first quarter 2026 financial outlook, including revenue, expected revenue from AMD Instinct MI308 sales to China and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD’s ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD’s ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD’s ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD’s reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD’s reliance on Microsoft and other software vendors’ support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD’s ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.
| (*) | In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue percent, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2025, AMD used a non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments. Additionally, AMD has provided an adjusted non-GAAP gross profit and gross margin which excludes the impact from the release of inventory and related charges associated with U.S. export restrictions and AMD InstinctTM MI308 revenue to China. AMD also provides adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of February 3, 2026, and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD’s control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law. |
©2026 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, AMD Instinct, EPYC, FidelityFX, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.
ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)
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