AMD Announces Third Quarter 2025 Financial Earnings Results

Advanced Micro Devices, Inc. (AMD) today announced its financial results for the third quarter of 2023, revealing a mixed performance. The company reported quarterly revenue of $9.25 billion, surpassing analysts’ expectations by approximately $489.5 million. However, AMD’s earnings per share came in at $0.75, falling short of the estimated $1.17, marking a notable miss in profitability.

Key Highlights:

• AMD reported record revenue of $9.2 billion for Q3 2025, a 36% increase year-over-year.
• Gross margin was 52%, with a non-GAAP gross margin of 54%.
• Operating income reached $1.3 billion, with net income of $1.2 billion and diluted earnings per share of $0.75.
• The Data Center segment revenue was $4.3 billion, up 22% year-over-year, driven by demand for EPYC processors and Instinct GPUs.
• The Client and Gaming segment revenue was $4 billion, up 73% year-over-year, with record sales of Ryzen processors.
• AMD expects Q4 2025 revenue to be approximately $9.6 billion, representing a year-over-year growth of about 25%.

In the third quarter of 2025, AMD achieved significant financial milestones, reporting a record revenue of $9.2 billion, which reflects a 36% increase compared to the same quarter last year. The company also noted a gross margin of 52%, with a non-GAAP gross margin of 54%. Dr. Lisa Su, AMD’s chair and CEO, stated, “We delivered an outstanding quarter, with record revenue and profitability reflecting broad-based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators.” This performance is attributed to strong demand across their product lines, particularly in the Data Center and Client and Gaming segments.

Looking ahead, AMD projects revenue for the fourth quarter of 2025 to be around $9.6 billion, indicating a year-over-year growth of approximately 25%. Jean Hu, AMD’s CFO, emphasized the company’s commitment to AI and high-performance computing, stating, “Our continued investments in AI and high-performance computing are driving significant growth and position AMD to deliver long-term value creation.” The company is also expanding its partnerships in the AI sector, which is expected to further enhance its growth trajectory.

Advanced Micro Devices, Inc. (AMD) has experienced a rollercoaster of price changes recently, with a notable 51.83% surge over the past month, reflecting strong investor sentiment and market enthusiasm. However, this excitement has been tempered by a slight decline of 3.10% in the last week, suggesting some volatility as traders react to broader market conditions. Over the past year, AMD’s stock has impressively risen by 77.68%, showcasing the company’s robust growth trajectory. Fundamental metrics reveal a price-to-earnings ratio of 145.70, indicating that investors are willing to pay a premium for future earnings potential, despite the absence of a two-year compound annual growth rate (CAGR) for earnings per share. The revenue CAGR of 16.32% and a remarkable free cash flow CAGR of 47.16% highlight AMD’s ability to generate substantial cash, which is crucial for funding innovation and expansion. Additionally, a net profit margin of 9.62% and a return on invested capital of 4.77% suggest that while the company is profitable, there is room for improvement in efficiency and capital utilization. As AMD continues to navigate the competitive landscape of the semiconductor industry, its financial performance will be closely watched by investors looking for sustained growth.

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. The company provides processors for desktop and notebook personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, and AMD PRO A-Series processors brands; discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics, AMD Embedded Radeon graphics brands; and professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands. It also offers Radeon Instinct, Radeon PRO V-series, and AMD Instinct accelerators for servers; chipsets under the AMD trademark; microprocessors for servers under the AMD EPYC; embedded processor solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD CPU, GPU, and multi-media technologies, as well as semi-custom SoC products. It serves original equipment manufacturers, public cloud service providers, original design manufacturers, system integrators, independent distributors, online retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.