AMD's third-quarter 2026 results, published on November 3, were carried by its data center business: revenue reached $13.4 billion, up 45% year over year and a company record, while data center revenue hit $8.5 billion, up 97% and accounting for 64% of total revenue. On the earnings call the same day, AMD raised its sights for 2027, expecting overall revenue growth of more than 80%, with the data center business contributing over 80% of total revenue. The reported figures are in; the 2027 claims still await delivery in the fourth quarter.
One segment's revenue now rivals all the others combined
Almost all of AMD's growth in the quarter came from the data center. The press release says data center revenue set a record at $8.5 billion, driven by strong demand for EPYC processors and the launch of the Instinct MI450 series GPUs, while the Helios and 'Venice' production ramps will decide whether growth can accelerate in the fourth quarter. The release also notes that Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are already using the first Helios rack-scale systems.
The rest of the results did not keep pace. Client and gaming revenue was $3.7 billion, down 8% year over year, with client revenue of $2.9 billion, up 7%, and gaming revenue of $773 million, down 40%; embedded revenue was $1.1 billion, up 29%. On profitability, non-GAAP diluted earnings per share were $2.09, up 74%, while GAAP operating income was $2.8 billion, up 123%. AMD shares rose about 8% in after-hours trading following the release.
The 2027 claims from the call: what is still only an expectation
The forecast of more than 80% growth in 2027 came from the earnings call, not from the formal guidance in the press release. On the call, CEO Lisa Su said overall revenue in 2027 is expected to grow more than 80%, above the 77% analysts had modelled; server revenue is expected to double, and data center AI revenue should grow even faster. CFO Jean Hu declined on the same call to give a 2027 gross-margin outlook, citing uncertainty over the revenue mix between Instinct GPUs and EPYC CPUs. AMD also expects PC shipments to fall by a double-digit percentage in 2027, leaving growth almost entirely dependent on the data center.
Fourth-quarter guidance is the first test of that case: AMD expects revenue of about $17 billion, plus or minus 3%, with the midpoint implying roughly 66% year-over-year growth and 27% sequential growth, and a non-GAAP gross margin of about 55%. If Helios deployments and the MI450 production ramp proceed as planned, the 2027 expectations have a footing; if delivery slips, the numbers from the call amount to no more than a verbal upgrade. The press release leaves the same opening: the outlook is based on current expectations, and actual results could differ materially with market conditions.
