Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) delivered record-breaking financial results for the fourth quarter and full year of 2025, significantly exceeding Wall Street expectations.
The chipmaker posted fourth quarter revenue of $10.3 billion, ahead of the analyst consensus of $9.65 billion and a substantial increase from the $7.7 billion reported in the year-ago quarter.
On a non-GAAP basis, the company achieved a record quarterly operating income of $2.9 billion and a record diluted earnings per share of $1.53, outperforming the projected $1.32.
The company's performance was bolstered by a record $5.4 billion in Data Center segment revenue, a 39% increase year-over-year driven by strong demand for EPYC processors and the continued ramp of Instinct GPU shipments.
The Client business also reached a record $3.1 billion in revenue, up 34% from the previous year, behind demand for Ryzen processors.
Gaming revenue rose 50% to $843 million, while the Embedded segment reported $960.7 million. For the full year, AMD delivered $34.6 billion in total revenue and non-GAAP earnings per share of $4.17.
“2025 was a defining year for AMD, with record revenue and earnings driven by strong execution and broad-based demand for our high-performance and AI platforms,” AMD CEO Dr Lisa Su.
“We are entering 2026 with strong momentum across our business, led by accelerating adoption of our high-performance EPYC and Ryzen CPUs and the rapid scaling of our data center AI franchise.”
Looking ahead to the first quarter of 2026, AMD expects revenue of approximately $9.8 billion, above Wall Street estimates of $9.33 billion. This guidance represents 32% year-over-year growth at the midpoint and includes roughly $100 million in sales of Instinct MI308 accelerators to China. The company anticipates a non-GAAP gross margin of approximately 55% for the upcoming quarter.
Shares of AMD traded down about 4% post-earnings at about $234, as some investors had expected even greater upside from the report.