AMD delivered a blockbuster finish to 2025, posting record quarterly and annual results driven by surging demand for AI, data center and high‑performance computing products.
AMD Q4 2025 Earnings Overview
In Q4 2025, AMD reported record revenue of 10.3 billion dollars, an increase of 34% year over year and 11% quarter over quarter. GAAP gross margin reached 54%, while non‑GAAP gross margin rose to 57%, reflecting a richer mix of high‑value data center and AI products.
GAAP operating income doubled versus the prior year to 1.8 billion dollars, with GAAP net income climbing to 1.5 billion dollars and diluted EPS of 0.92 dollars. On a non‑GAAP basis, AMD delivered operating income of 2.9 billion dollars, net income of 2.5 billion dollars and record diluted EPS of 1.53 dollars, up 40% compared to Q4 2024.
Full‑Year 2025: Record Revenue and Earnings
For the full year 2025, AMD generated record revenue of 34.6 billion dollars, up 34% from 2024. GAAP gross margin improved to 50%, and GAAP operating income nearly doubled to 3.7 billion dollars, underscoring strong operating leverage as the company scales.
On a non‑GAAP basis, AMD reported a 52% gross margin, 7.8 billion dollars of operating income and 6.8 billion dollars of net income. Non‑GAAP diluted EPS reached 4.17 dollars, an increase of 26% year over year, highlighting the strength of AMD’s AI‑ and data‑center‑centric strategy.
Segment Performance: Data Center, Client & Gaming, Embedded
Data Center
The Data Center segment was the primary growth engine in Q4 2025. Segment revenue reached a record 5.4 billion dollars, up 39% year over year. This growth was driven by strong demand for EPYC server processors and accelerating shipments of AMD Instinct GPUs for AI and high‑performance computing workloads.
For the full year 2025, Data Center revenue rose to 16.6 billion dollars, up 32% from the prior year, reflecting broad adoption across cloud, enterprise and AI customers.
Client and Gaming
Client and Gaming segment revenue in Q4 2025 totaled 3.9 billion dollars, a 37% year‑over‑year increase. Within this segment:
- Client revenue was a record 3.1 billion dollars, up 34%, supported by strong demand for Ryzen processors and continued PC market share gains.
- Gaming revenue reached 843 million dollars, up 50%, driven by higher semi‑custom SoC sales and robust Radeon GPU demand.
For the full year, Client and Gaming revenue rose to 14.6 billion dollars, up 51% year over year, with both Client and Gaming businesses posting 51% growth.
Embedded
Embedded segment revenue in Q4 2025 was 950 million dollars, up 3% versus the prior year as demand strengthened across several end markets. For the full year 2025, Embedded revenue totaled 3.5 billion dollars, down 3% year over year due to customer inventory adjustments earlier in the year.
AI, China Effects and Margin Quality
AMD’s Q4 2025 results were influenced by U.S. export controls and the handling of Instinct MI308 data center GPUs. The quarter included approximately 360 million dollars of benefit from the release of previously reserved MI308 inventory and related charges, as well as about 390 million dollars of Instinct MI308 revenue to China.
Excluding both the inventory reserve reversal and MI308 sales to China, AMD’s Q4 non‑GAAP gross margin would have been around 55%. This demonstrates that the underlying margin profile of AMD’s core business remains robust, even without these one‑off elements and region‑specific contributions.
Cash Flow, Balance Sheet and 2026 Outlook
AMD exited 2025 with a strong financial foundation and increasing cash generation. Free cash flow for the year reached 5.5 billion dollars, supported by higher profitability and disciplined capital spending. The company also strengthened its balance sheet with over 10.5 billion dollars in cash, cash equivalents and short‑term investments at year end, despite continued investments and share repurchases.
For Q1 2026, AMD expects revenue of approximately 9.8 billion dollars, plus or minus 300 million dollars, including around 100 million dollars of Instinct MI308 sales to China. At the midpoint, this implies about 32% year‑over‑year growth and a modest 5% sequential decline after a record quarter. Non‑GAAP gross margin is projected to be around 55%, indicating continued strength from data center, AI and advanced CPU platforms.
FAQ: AMD Q4 2025 and 2025 Results
Q1: What was AMD’s revenue in Q4 2025?
AMD reported Q4 2025 revenue of 10.3 billion dollars, up 34% year over year and 11% sequentially.
Q2: How profitable was AMD in the fourth quarter?
GAAP net income was 1.5 billion dollars with diluted EPS of 0.92 dollars, while non‑GAAP net income was 2.5 billion dollars with record diluted EPS of 1.53 dollars.
Q3: Which segment drove the most growth?
The Data Center segment led growth with record Q4 revenue of 5.4 billion dollars, fueled by strong EPYC CPU and Instinct GPU demand.
Q4: How did the Client and Gaming business perform?
Client and Gaming revenue reached 3.9 billion dollars in Q4 2025, up 37% year over year, with record Client revenue and a 50% increase in Gaming revenue.
Q5: What impact did China and export controls have on results?
Q4 included a 360 million dollar release of reserved Instinct MI308 inventory and about 390 million dollars of MI308 revenue to China; excluding these effects, non‑GAAP gross margin would have been around 55%.
Q6: What were AMD’s full‑year 2025 results?
AMD posted full‑year 2025 revenue of 34.6 billion dollars, GAAP net income of 4.3 billion dollars and non‑GAAP diluted EPS of 4.17 dollars.
Q7: What is AMD guiding for Q1 2026?
AMD expects Q1 2026 revenue of roughly 9.8 billion dollars (plus or minus 300 million dollars) and a non‑GAAP gross margin of about 55%.
Q8: Why are these results important for investors?
The results highlight accelerating AI and data center momentum, strong margin expansion and rising free cash flow, supporting a positive long‑term growth thesis.
Disclaimer
This text is provided for informational and educational purposes only and does not constitute financial, investment, legal or tax advice. It is not a recommendation to buy, sell or hold any security, nor is it a substitute for independent professional advice tailored to your individual circumstances. Financial markets and company fundamentals can change rapidly, and any investment decision should be based on your own research, judgment and, where appropriate, consultation with a qualified advisor.
