AMD posted an AMD record quarter on Tuesday, reporting third-quarter 2026 revenue of $13.4 billion โ the largest quarter in company history โ as data center sales nearly doubled year over year and shares jumped about 8% in after-hours trading.
The chipmaker’s revenue of $13.38 billion rose 45% from a year ago and 16% sequentially, beating the $13.09 billion analyst consensus and landing above the high end of the company’s own guidance of around $13 billion. Non-GAAP earnings came in at $2.09 per share, up 74% and comfortably ahead of the $1.95 expected on Wall Street.
Data Center Revenue Nearly Doubles to $8.5B
The star of this AMD record quarter was the Data Center segment, which posted record revenue of $8.55 billion โ up 97% year over year and now accounting for 64% of total company revenue. AMD credited record server revenue, strong demand for its 5th-generation EPYC processors, the launch of its Instinct MI450 accelerators, and record data-center AI revenue.
“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” said AMD CEO Lisa Su, pointing to accelerating AI infrastructure demand as the engine behind the numbers.
$17B Q4 Guidance Beats Wall Street
AMD isn’t slowing down. The company guided fourth-quarter revenue to approximately $17 billion, plus or minus 3% โ representing roughly 66% year-over-year growth and 27% sequential growth, and well above the $16.3 billion analyst average. Management also signaled that 2027 revenue growth is expected to exceed 80%, an extraordinary outlook that underscores how central AMD has become to the AI buildout.
Profitability improved alongside the top line. GAAP net income reached $2.43 billion, with gross margin at 54%, reflecting the favorable mix shift toward higher-margin data center products.
What It Means for AMD’s AI Bet
This AMD record quarter cements the company’s position as the clearest challenger in the AI chip race. With data center now nearly two-thirds of revenue, AMD’s fortunes are increasingly tied to hyperscaler AI spending โ and with Q4 guidance that aggressive, the company is betting that spending keeps climbing.
Investors clearly bought the story: the roughly 8% after-hours pop added billions to AMD’s market value within minutes of the release. The question now is whether AMD can convert this momentum into sustained share gains through 2027, when it expects revenue growth above 80%.
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