Lead: Advanced Micro Devices reported third-quarter 2025 results on November 4, 2025 from Santa Clara, California, posting record revenue of $9.246 billion and GAAP net income of $1.243 billion. GAAP gross margin was 52% and diluted earnings per share were $0.75; on a non-GAAP basis AMD reported $1.965 billion net income and diluted EPS of $1.20. The company said Q3 results did not include any revenue from shipments of AMD Instinct MI308 GPUs to China. Management framed the quarter as a step-change driven by stronger demand for EPYC and Ryzen processors and accelerating data‑center AI deployments.
Key takeaways
- Revenue hit a record $9,246 million in Q3 2025, up 36% year-over-year from $6,819 million in Q3 2024 and up 20% sequentially from $7,685 million in Q2 2025.
- GAAP gross margin was 52% in Q3 2025 versus 50% in Q3 2024; non‑GAAP gross margin was 54% (flat year-over-year, up from 43% in Q2 2025).
- GAAP operating income was $1,270 million, a 75% increase year-over-year; non‑GAAP operating income was $2,238 million, up 30% year-over-year.
- GAAP net income was $1,243 million ($0.75 diluted EPS); non‑GAAP net income was $1,965 million ($1.20 diluted EPS).
- Segment drivers: Data Center revenue $4,341 million (up 22% Y/Y); Client and Gaming combined $4,048 million (up 73% Y/Y) with Client at a record $2,750 million and Gaming at $1,298 million.
- Free cash flow for the quarter was $1,530 million; cash and short‑term investments totaled $7,243 million at quarter end.
- Q4 2025 guidance: revenue expected at approximately $9.6 billion ± $300 million and non‑GAAP gross margin around 54.5%; the outlook excludes MI308 shipments to China.
Background
AMD has spent the last several years positioning its product portfolio around high‑performance x86 server CPUs, client processors and a growing family of AI accelerators. The company’s 5th Gen EPYC processors and successive Ryzen families are central to that strategy, and AMD’s Instinct family of GPUs is being promoted into large AI infrastructure deployments. Over the past five years AMD has broadened its addressable market through acquisitions, product diversity and partnerships with cloud and enterprise infrastructure providers.
The semiconductor industry remains cyclical and sensitive to macro demand, supply chain dynamics and government export controls. In Q2 2025 AMD recorded an $800 million charge tied to inventory and related costs associated with U.S. export restrictions on the Instinct MI308 product; the company says adjusted non‑GAAP metrics for Q2 would have reflected a higher gross margin absent those charges. AMD reports results on both GAAP and non‑GAAP bases to help investors compare underlying operating performance after excluding certain items such as stock‑based compensation and acquisition‑related amortization.
Main event
AMD announced on November 4, 2025 that Q3 revenue reached $9,246 million, driven by robust demand across its Data Center and Client & Gaming segments. Data Center revenue of $4,341 million rose 22% year‑over‑year, fueled by deployments of 5th Gen EPYC processors and Instinct MI350‑series GPUs. Client revenue hit a company record of $2,750 million, up 46% year‑over‑year, led by strong Ryzen processor sales and a richer product mix; Gaming revenue was $1,298 million, up 181% year‑over‑year largely from semi‑custom and Radeon GPU demand.
On profitability, GAAP gross profit was $4,780 million and GAAP operating income $1,270 million. Non‑GAAP metrics—excluding stock compensation, amortization and other adjustments—showed a gross profit of $4,992 million and operating income of $2,238 million. The company emphasized that Q3 figures excluded any revenue from MI308 shipments to China, a point it reiterated in its outlook and disclosures.
Management provided forward guidance for Q4 2025: revenue of approximately $9.6 billion plus or minus $300 million (mid‑point implying ~25% Y/Y growth) and expected non‑GAAP gross margin around 54.5%. The company also scheduled an investor conference call at 2:00 p.m. PT on November 4, 2025 to discuss results and outlook.
Analysis & implications
Revenue growth of 36% year‑over‑year and sequential improvement reflect both cyclical recovery and structural momentum in AI and high‑performance compute. Data Center strength signals expanding adoption of AMD’s server CPU and accelerator roadmap, while the record client revenue shows continued traction in consumer and enterprise PC markets. The simultaneous growth in client and data‑center businesses reduces single‑segment concentration risk and improves revenue mix.
Profitability expanded materially: GAAP operating income swung to $1.27 billion from an operating loss in Q2 2025, driven by higher revenue, improved gross margin and operating leverage. Non‑GAAP operating margin of 24% demonstrates how excluding certain non‑cash and one‑time items changes the picture for recurring operating performance; investors should weigh both GAAP and non‑GAAP views when valuing the company.
AMD’s highlighted partnerships and customer commitments—if executed on the stated timelines—could materially enlarge addressable AI infrastructure spend for AMD accelerators and EPYC CPUs. However, those are forward‑looking commercial rollouts that depend on supply, customer integration and regulatory factors. Export restrictions and prior inventory charges underscore geopolitical and policy risks that can affect near‑term revenue flows, particularly for specific GPU products and certain markets.
Comparison & data
| Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|---|---|---|---|
| Revenue | $9,246M | $7,685M | $6,819M |
| GAAP Gross Margin | 52% | 40% | 50% |
| GAAP Operating Income | $1,270M | $(134)M | $724M |
| GAAP Net Income | $1,243M | $872M | $771M |
| GAAP Diluted EPS | $0.75 | $0.54 | $0.47 |
| Non‑GAAP Net Income | $1,965M | $781M | $1,504M |
| Non‑GAAP Diluted EPS | $1.20 | $0.48 | $0.92 |
The table highlights the quarter‑to‑quarter swing driven by revenue growth and the absence of the inventory‑related Q2 charge when considering adjusted non‑GAAP comparatives. Investors should note the Q2’25 inventory and related charges tied to U.S. export restrictions, which materially reduced reported gross margin that quarter.
Reactions & quotes
AMD’s executive statements emphasized both product performance and strategic partnerships as growth engines; the company also reiterated risk factors tied to policy and supply.
CEO Lisa Su characterized the quarter as an “outstanding quarter” with record revenue and profitability driven by demand for EPYC, Ryzen and Instinct accelerators, and said the results signal a step up in AMD’s growth trajectory.
Dr. Lisa Su, AMD (CEO)
CFO Jean Hu said the company generated record quarterly revenue of $9.2 billion and strong free cash flow, noting continued AI and HPC investments that support long‑term value creation.
Jean Hu, AMD (CFO)
Market participants on the company call will be watching execution risk around large cloud deployments and the timing of announced partnerships, as those deals are major incremental demand drivers if delivered as planned.
Investor/analyst commentary (summary)
Unconfirmed
- The exact timing and ultimate scale of the OpenAI commitment to 6 gigawatts of AMD GPUs remain forward‑looking and subject to contractual and deployment contingencies.
- Oracle’s stated initial deployment of 50,000 GPUs in Q3 2026 is a company announcement and depends on supply, integration and customer adoption; timing could change.
- Projected revenue contributions from planned MI308 shipments to China are not included in Q3 results and the pace of any future shipments is subject to export controls and regulatory approvals.
Bottom line
AMD’s Q3 2025 results show a notable revenue and profit inflection: record quarterly revenue of $9,246 million, improved margins and substantial free cash flow. Growth was broad‑based across data center and client/gaming, reflecting both secular AI demand and cyclical recovery in PCs and gaming.
Near term, execution risk centers on fulfilling large announced cloud and enterprise deployments, managing geopolitical/export constraints (notably for specific GPU SKUs), and maintaining margin expansion as investments in AI infrastructure scale. For investors and customers, the quarter strengthens the narrative that AMD is capturing a growing share of compute spend, but forward commitments cited in the release remain contingent and require monitoring.