Advanced Micro Devices, Inc. (AMD) Announced Q1 2026 Earnings on May 5, 2026, Reporting "First quarter revenue increased 38% year-over-year to $10.3 billion"

Advanced Micro Devices, Inc. reported its first quarter 2026 financial results, stating that "First quarter revenue increased 38% year-over-year to $10.3 billion" driven by higher sales of EPYC CPUs, Instinct GPUs, and Ryzen processors.

Executive Vice President and CFO Jean Hu noted that for the quarter, "Gross margin was 55%" and "Operating income was $2.5 billion, representing a 25% operating margin." The company also generated a record $2.6 billion in free cash flow for the quarter, and diluted earnings per share was $1.37.

Chair and CEO Lisa Su emphasized that "Data center is now the primary driver of our revenue and earnings growth" with data center revenue increasing 57% year-over-year to a record $5.8 billion for the quarter.

She highlighted that "Inferencing and agentic AI are increasing the need for server CPU compute" and noted the company now expects the server CPU total addressable market to grow at greater than 35% annually, reaching over $120 billion by 2030.

The client segment also grew, with first quarter revenue up 26% year-over-year to $2.9 billion.

Management announced an "expanded strategic partnership with Meta to deploy up to 6 gigawatts of AMD Instinct GPUs spanning several product generations." This agreement includes a custom GPU accelerator based on the MI450 architecture.

Lisa Su stated the company has "begun sampling MI450 series GPUs to lead customers and remain on track to ramp Helios production shipments in the second half of the year." Additionally, the company is preparing for its sixth-gen EPYC Venice processor, which remains on track to launch later this year.

Providing forward guidance for the second quarter of 2026, Jean Hu stated, "We expect revenue to be approximately $11.2 billion, plus or minus $300 million." The company expects server CPU revenue to grow by more than 70% year-over-year in the second quarter.

Furthermore, the company guided second quarter non-GAAP gross margin to be approximately 56% and non-GAAP operating expenses to be approximately $3.3 billion.