Advanced Micro Devices, Inc. Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 2026 revenue was $10.3 billion, up 38% year-over-year. Sequentially flat.
  • Strong growth driven by Data Center (+57% YoY), Client (+26% YoY), and Gaming (+11% YoY). Embedded returned to YoY growth (+6%).
  • Gross margin was 55%, up 170 bps YoY due to richer Data Center mix.
  • Diluted EPS was $1.37, up 43% YoY.
  • Free cash flow reached a record $2.6 billion (more than triple YoY).

Business Segment Highlights

Data Center

  • Record revenue of $5.8 billion, up 57% YoY and 7% QoQ.
  • Server CPU revenue grew more than 50% YoY, marking the fourth straight quarter of record server CPU revenue.
  • Cloud and Enterprise CPU revenue both grew more than 50% YoY.
  • EPYC instances in cloud expanded nearly 50% YoY to 1,600+.
  • Strong adoption of EPYC Turin and sustained strength from fourth‑gen EPYC.
  • New Venice (Zen 6, 2nm) CPU family launching later this year offers more than 2x throughput per socket vs leading ARM AI CPUs.
  • AMD now expects server CPU TAM to exceed $120 billion by 2030, growing more than 35% annually (previous estimate: ~$60B TAM growing 18%).
  • Server CPU revenue expected to grow more than 70% YoY in Q2, with strong growth through 2026–2027.

Data Center AI (Instinct GPUs & Helios Systems)

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Operator: Greetings, and welcome to the AMD First Quarter 2026 Conference Call. [Operator Instructions] And please note that this conference is being recorded. I will now turn the conference over to Matt Ramsay, Vice President of Financial Strategy and IR. Thank you, Matt. You may begin. Matthew Ramsay: Thank you, and welcome to AMD's First Quarter 2026 Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings press release and the accompanying slides. If you have not had a chance to review these materials, they can be found on the Investor Relations page of amd.com. We will refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and slides posted on our website. Participants on today's conference call are Dr. Lisa Su, our Chair and CEO; and Jean Hu, Executive Vice President, CFO and Treasurer. This is a live call and will be replayed via webcast on our website. Before we begin the call, I would like to note that Jean Hu will present at the Bank of America Global TMT Conference on Tuesday, June 2 in San Francisco. Today's discussion contains forward-looking statements based on current beliefs, assumptions and expectations, speak only as of today and as such, involve risks and uncertainties that could cause actual results to differ materially from our current expectations. Please refer to our cautionary statement in our press relea

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