AMD reported record third-quarter revenue of $13.4 billion, up 45 percent on a year earlier, and guided to about $17 billion for the fourth quarter. The numbers were driven by data centre sales, while its PC and gaming business shrank, and chief executive Lisa Su told analysts she expects the PC market to decline by double digits in 2027.
The quarter in numbers
AMD said on 3 November that revenue for the quarter ended 26 September rose 16 percent from the previous quarter. Non-GAAP gross margin was 56 percent, non-GAAP operating income reached a record $3.9 billion, and non-GAAP earnings per share were $2.09, up 74 percent. GAAP earnings per share were $1.46, which Investing.com says includes a $1.1 billion non-cash warrant charge.
Data Center revenue was $8.5 billion, up 97 percent year on year, and now makes up about 64 percent of the company's sales, compared with 47 percent a year ago. AMD credits demand for EPYC server processors and the launch of the Instinct MI450 GPU series. The company says Helios rack-scale systems built around MI450 GPUs and sixth-generation EPYC chips are running at Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure. Lisa Su said demand for Instinct and EPYC "continued to strengthen".
Embedded revenue rose 29 percent to $1.1 billion. The quarter was also a record for cash, at $15.8 billion, although total debt more than doubled from the previous quarter to $7.1 billion after a $4.75 billion notes offering in August, according to Investing.com's reading of the filing.
The PC side is a different story
For readers who follow PCs, the weaker half of the report matters most. Client and Gaming revenue was $3.7 billion, down 8 percent year on year. Within that, Client, which covers Ryzen processors for laptops and desktops, rose 7 percent to $2.9 billion, while Gaming fell 40 percent to $773 million. Investing.com attributes the gaming drop to weaker semi-custom and graphics sales, and reports the segment's operating margin fell to 15 percent from 21 percent.
The outlook is harsher. AMD expects Data Center revenue to rise about 50 percent from the third quarter to the fourth, while Client and Gaming is guided to fall by more than 20 percent. For 2027, Investing.com reports Su expects total revenue growth above 80 percent, server revenue to double and Data Center to exceed 80 percent of sales, while the PC market declines by double digits.
That echoes what Intel said last week, when it warned of a sharp PC slump alongside its own third-quarter results. Memory costs are a common thread. AI data centres have absorbed so much DRAM supply that PC makers face higher component bills.
New products and deals
AMD's release lists several product moves. It launched the Ryzen AI Halo platform, built around the Ryzen AI Max PRO 400 Series, and a Threadripper Halo Station workstation PC. It released ROCm 10, its GPU software stack, and introduced a Helion reference architecture for rack-scale systems aimed at agentic AI. It also began sampling a space-grade Versal AI Core chip, and EuroHPC selected MI430X GPUs and EPYC processors for the LUMI-AI supercomputer.
The company also announced agreements to acquire World Labs, the research lab founded by Fei-Fei Li, and a second company called Taalas. Gadgets365 reported the World Labs deal, valued at $8.2 billion in stock, in September.
What it means for buyers
AMD's guidance suggests the company is willing to let its consumer business shrink while it chases AI infrastructure demand. For laptop and desktop buyers, that is a reminder that the chip makers' attention, and the memory supply they compete for, is tilting toward servers. Su's forecast of a double-digit PC decline implies fewer units and probably firmer prices rather than a pricing war, though AMD did not give price guidance.
India was not mentioned in the results. Indian buyers of Ryzen laptops and handheld gaming PCs should expect the same component cost pressures that are showing up in other markets, but AMD has not announced any India-specific pricing change.
What to watch next
The key test is the fourth quarter, when AMD expects a sharp jump in Data Center sales as MI450 and Helios shipments ramp, and a steep fall in Client and Gaming. Watch for AMD's outlook on console and graphics demand, for any change to Ryzen pricing as memory costs rise, and for the first results from the World Labs and Taalas deals after they close.
Published 6 November 2026. Gadgets365 will update this article as more information becomes available.
