AMD announced financial results for its second quarter of 2026, reporting revenue of $11.5 billion, up 50% year-over-year and up 13% quarter-over-quarter. Gross margin was 54% (56% non-GAAP), operating income was $2.0 billion ($3.1 billion non-GAAP), net income was $2.3 billion ($2.8 billion non-GAAP), and diluted earnings per share was $1.38 ($1.66 non-GAAP).
The Data Center segment was the primary growth driver, with revenue of $6.7 billion, up 107% year-over-year, representing 58% of total company revenue. AMD credited strong demand for EPYC processors and Instinct GPUs. CEO Lisa Su said Data Center revenue more than doubled year-over-year and that the company enters the second half of the year with strong momentum as EPYC demand accelerates, Instinct deployments scale, and the Helios rackscale solution begins to ramp. CFO Jean Hu said Data Center sales are expected to accelerate further in the second half of 2026.
The Client and Gaming segment brought in $3.8 billion, up 6% year-over-year. Within that, Client revenue rose 23% to $3.1 billion on strong Ryzen processor demand, with Su noting Ryzen PRO sales grew more than 50% year-over-year on new wins in healthcare, technology, automotive, and financial services. Gaming revenue, however, fell 31% year-over-year to $779 million, which AMD attributed to lower semi-custom revenue. Su also said rising industry-wide component costs have pushed up graphics card prices and weighed on demand. AMD had earlier forecast a 20% decline in gaming revenue for the second half of the year, and Hu reaffirmed expectations of a strong double-digit decline in gaming alongside slight growth in client for that period.
Despite the gaming decline, Su expressed optimism about the client CPU business going into 2026, saying AI PCs will become more important to that business and that first-half performance was strong. She noted that while the market is expected to decline in the second half, it has held up better than many anticipated.
Embedded segment revenue was $977 million, up 19% year-over-year, which AMD said reflected strengthening demand across multiple end markets; Hu also pointed to expected strong double-digit growth in embedded going forward.
Looking ahead, AMD said it expects third-quarter 2026 revenue of approximately $13 billion, plus or minus $300 million, representing about 41% year-over-year growth and roughly 13% sequential growth, with non-GAAP gross margin expected around 56%. Hu said the growth is expected to be driven by very strong double-digit growth in the Data Center segment. Alongside the earnings report, AMD detailed a broad set of product launches and partnerships during the quarter, including the Helios rackscale AI server, the Instinct MI400 series GPUs, 6th Gen EPYC CPUs, and collaborations with Anthropic, Microsoft, Cerebras, and Cisco, as well as new Ryzen AI Halo systems and embedded and adaptive computing products.