AMD Earnings Beat; Q1 Guidance Suggests Slower Pace
AMD earnings showed a record Q4 on Feb. 3, 2026 powered by AI, but Q1 guidance of $9.8 billion softened growth outlook and may pressure sentiment.
KEY TAKEAWAYS
- Record Q4 revenue was $10.3 billion, led by 39% data-center growth.
- Q1 2026 revenue guidance was $9.8 billion, above consensus but below some analyst models.
- No full-year 2026 guidance was provided, leaving forecasts dependent on analyst models and deployments.
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Advanced Micro Devices Inc. (AMD) reported a record fourth quarter on Feb. 3, 2026. AMD earnings reflected strong AI-driven data-center demand, but the company’s first-quarter revenue forecast fell short of some elevated analyst models, indicating a potential slowdown in growth.
Record Fourth Quarter Results
AMD posted fourth-quarter revenue of $10.3 billion, a 34% increase from $7.7 billion a year earlier, the company said in a press release. The result exceeded the consensus estimate of $9.65 billion and set a new quarterly record.
On a non-GAAP basis, diluted earnings per share reached a record $1.53. Non-GAAP operating income was $2.9 billion, and non-GAAP net income was $2.5 billion. The company reported a non-GAAP gross margin of 57%, compared with a GAAP gross margin of 54%. On a GAAP basis, operating income was $1.8 billion, net income $1.5 billion, and diluted EPS $0.92.
For the full year 2025, AMD posted revenue of $34 billion, surpassing prior analyst expectations of about $33 billion.
The data-center segment drove the quarter’s growth, delivering 39% year-over-year revenue increase. This was fueled by strong demand for EPYC server processors and accelerating ramps of MI350 GPUs alongside ongoing MI300 deployments.
Guidance Reflects AI Demand but Signals Moderation
AMD projected first-quarter 2026 revenue of $9.8 billion, with a $300 million bandwidth, implying a range of $9.5 billion to $10.1 billion. The midpoint was about $420 million above the consensus estimate of $9.38 billion but below some analyst forecasts exceeding $10 billion.
The company attributed the outlook to robust demand for AI accelerators and expanding data-center capacity. It did not provide full-year 2026 revenue or earnings guidance, leaving investors to rely on existing models and reported large-scale customer deployments to shape forecasts.
Data-center revenue growth of 39% in the fourth quarter, driven by EPYC processors and MI350 and MI300 GPUs, remains the key factor for 2026 estimates. The absence of full-year guidance adds uncertainty to revenue and margin projections for the year ahead.
