Advanced Micro Devices Inc.
AMDFinancial 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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