Advanced Micro Devices Inc.

AMD
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$10.3B
Q1 2026 · +38% YoY
TTM ROIC
11.7%
FY2025 · Non-GAAP NOPAT / Invested Capital (including Xilinx goodwill); NOPAT = Non-GAAP Op Inc × (1 − 15% tax rate); IC = Equity + Debt − Excess Cash · WACC ~11.5% · Moat spread +0.5pp

Financial Snapshot


ticker: AMD step: 04 generated: 2026-05-12 source: quick-research

Advanced Micro Devices, Inc. (AMD) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Revenue $22.7B $25.8B $30.5B +18%
Gross Margin (non-GAAP) 50.6% 53.0% 54.0% +1pp
Operating Margin (non-GAAP) 22.2% 25.0% 27.5% +2.5pp
Non-GAAP Net Income $4.3B $5.7B $7.8B +37%
Non-GAAP EPS (diluted) $2.65 $3.51 $4.80 +37%

Segment Revenue (FY2025)

Segment FY2025 YoY
Data Center $16.6B +32%
Client $9.2B +56% (Zen 5 + AI PC)
Gaming $3.3B -10% (console down, gaming GPU stable)
Embedded $3.7B -12% (Xilinx market correction bottoming)
Total $30.5B

Data Center + AI Detail

Metric Value
FY2024 Instinct AI revenue >$5B
FY2025 Instinct AI revenue ~$9-10B (data center GPU)
FY2027E AI revenue target "Tens of billions"
Data center growth rate 60%+ over next 3-5 years per mgmt

Q1 2026 Highlights

Metric Q1 2026 YoY
Revenue Guidance $9.9B +32%
Non-GAAP Gross Margin ~54%
Q4 FY25 Data Center $5.4B +39%
Q4 FY25 Client $3.1B +34%
Q4 FY25 Gaming $843M +50%

Mega-Deals (2025-2026)

Customer Deal Timing Architecture
OpenAI 6 GW deployment Begins 2H 2026 MI400 series
Meta 6 GW deployment Begins 2H 2026 Custom MI450
MI400 launch ~$7.2B first-year revenue estimate 2026 HBM4
Helios rack-scale Direct Nvidia GB200 challenger 2026 MI400 series

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$8B
Capital Expenditures ~($1.5B)
Free Cash Flow ~$6.5B
Cash & Equivalents ~$5B
Total Debt ~$2B
Net Cash Position ~$3B

Key Ratios (approximate, May 2026)

  • P/E (forward): ~32x | EV/Sales: ~11x | FCF Yield: ~1.8%
  • Net Cash Position: ~$3B
  • ROIC: ~12%

Growth Profile

AMD is at an AI inflection point — Q1 2026 guide of $9.9B (+32%) sets up a record year. Data center +39% in Q4 FY25 driven by EPYC Turin + MI350 (and MI355 specifically competitive with B200). Mid-2026 brings MI400 launch + Helios rack-scale system + OpenAI 6GW + Meta 6GW deployments. AI revenue trajectory: >$5B (2024) → ~$9-10B (2025) → estimated $15-20B (2026) → "tens of billions" by 2027.

Forward Estimates

  • FY2026E Revenue: ~$40B (+30%)
  • FY2026E Non-GAAP EPS: ~$6.50-7.00 (consensus, +35-45%)
  • FY2027E Revenue: ~$55B (+38%)
  • FY2027E EPS: ~$10-12 (consensus, +50%+)
  • FY2028E EPS: $12+ (bull case)
  • Long-term DC GPU revenue target: $20B+ within 2 years

Capital Return

  • $7.5B share repurchase authorization (2024)
  • No dividend
  • FY2025 buybacks: ~$2-3B
  • Net cash provides flexibility; M&A optionality (Xilinx model worked well)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $AMD.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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