Earnings2 min read
Advanced Micro Devices (AMD): Q2 FY2026 Earnings Review
In brief
AMD reported Q2 CY2026 earnings this week, in index_constituents, with focus on data-center/AI accelerator revenue and full-year guidance.
AMD reported results for its fiscal second quarter ended June 27, 2026 (April–June 2026) on August 4 after the close. Revenue hit a record $11.5 billion, up 50% year-over-year and 13% sequentially. Non-GAAP diluted EPS reached $1.66, up 246% from a year ago. For Q3, AMD guided to roughly $13 billion in revenue, implying roughly 41% growth at the midpoint.
What's behind AMD's results
1. Data Center Revenue
Data Center was the engine of the quarter. Segment revenue reached $6.7 billion, up 107% year-over-year, and now accounts for 58% of total company revenue. The growth was powered by EPYC server CPUs and Instinct GPUs sold into AI training and inference workloads. Revenue growth of 107% year-over-year confirms that demand for AMD's data center products is accelerating.
2. Margins
Non-GAAP gross margin hit 56%, up 13 percentage points year-over-year from 43%. Operating margin reached 27%, more than double the 12% posted a year earlier. The lift came from a richer mix of high-margin Data Center silicon and improved operating leverage as revenue scaled faster than expenses. Operating expenses grew just 32% on a GAAP basis against 50% revenue growth, showing clear scaling.
3. Guidance and Pipeline
Management guided Q3 revenue to approximately $13 billion plus or minus $300 million, implying roughly 41% year-over-year growth and 13% sequential growth. Non-GAAP gross margin is expected to stay around 56%. New deals with Anthropic, Microsoft, Meta, OpenAI, and Oracle add a multi-gigawatt pipeline for AMD Instinct GPUs in Helios racks.
Historical Context
This is a continuation of an acceleration that has built over the past several quarters. Quarterly revenue rose from $7.7 billion a year ago to $11.5 billion now, with Data Center more than doubling over that span. The year-ago quarter was also dragged down by an $800 million charge tied to U.S. export controls on MI308 GPUs. Underneath that noise, the underlying growth curve keeps steepening.