AMD 8-K: Smart Summary

AMD reported record fourth quarter 2025 revenue of $10.3B (up 34% year-over-year) and record full year 2025 revenue of $34.6B (up 34% year-over-year), driven by strong demand across its Data Center, Client, and Gaming segments. The filing covers Item 2.02 results of operations for the fiscal quarter and fiscal year ended December 27, 2025. Full year 2025 results included approximately $440M in net inventory and related charges as a result of U.S. Government export controls on AMD Instinct MI308 data center GPU products.

• Q4 2025 GAAP revenue: $10,270M, up 34% YoY and up 11% QoQ
• Q4 2025 GAAP gross margin: 54%, up 3 ppts YoY; non-GAAP gross margin: 57%, up 3 ppts YoY
• Q4 2025 GAAP operating income: $1,752M, up 101% YoY; non-GAAP operating income: $2,854M (record), up 41% YoY
• Q4 2025 GAAP net income: $1,511M, up 213% YoY; non-GAAP net income: $2,519M (record), up 42% YoY
• Q4 2025 GAAP diluted EPS: $0.92, up 217% YoY; non-GAAP diluted EPS: $1.53 (record), up 40% YoY
• Full year 2025 GAAP revenue: $34,639M, up 34% YoY; GAAP net income: $4,335M, up 164% YoY; GAAP diluted EPS: $2.65, up 165% YoY
• Full year 2025 non-GAAP operating income: $7,768M (record), up 27% YoY; non-GAAP net income: $6,831M (record), up 26% YoY; non-GAAP diluted EPS: $4.17 (record), up 26% YoY
• Q4 2025 GAAP cash flow from operating activities of continuing operations: $2,304M (Q4 2024: $1,299M); full year 2025: $6,493M (full year 2024: $3,041M)
• Q4 2025 free cash flow: $2,082M, up from $1,091M in Q4 2024; full year 2025 free cash flow: $5,519M, up from $2,405M in full year 2024
• Q4 2025 Adjusted EBITDA: $3,048M vs. $2,198M in Q4 2024; full year 2025 Adjusted EBITDA: $8,521M vs. $6,810M in full year 2024

• Data Center: Q4 2025 revenue $5,380M (record), up 39% YoY, driven by strong demand for AMD EPYC processors and continued ramp of AMD Instinct GPU shipments; Q4 operating income $1,752M vs. $1,157M in Q4 2024
• Data Center full year 2025 revenue: $16,635M (record), up 32% YoY, reflecting growth across both EPYC CPUs and AMD Instinct GPUs
• Client and Gaming: Q4 2025 total revenue $3,940M, up 37% YoY; Client revenue $3,097M (record), up 34% YoY; Gaming revenue $843M, up 50% YoY; Q4 operating income $725M vs. $496M in Q4 2024
• Client and Gaming full year 2025 revenue: $14,550M (record), up 51% YoY; Client $10,640M (record), up 51% YoY; Gaming $3,910M, up 51% YoY
• Embedded: Q4 2025 revenue $950M, up 3% YoY; Q4 operating income $357M vs. $362M in Q4 2024
• Embedded full year 2025 revenue: $3,454M, down 3% YoY, reflecting customer inventory level adjustments earlier in the year

• Cash and cash equivalents at December 27, 2025: $5,539M vs. $3,787M at December 28, 2024
• Short-term investments at December 27, 2025: $5,013M vs. $1,345M at December 28, 2024
• Total cash, cash equivalents and short-term investments: $10,552M at end of Q4 2025 vs. $5,132M at end of Q4 2024
• Total debt at December 27, 2025: $3,222M vs. $1,721M at December 28, 2024; includes current portion of long-term debt, net of $874M
• Full year 2025 proceeds from debt and commercial paper issuance, net of issuance costs: $2,441M; repayment of debt and commercial paper: $950M
• Full year 2025 common stock repurchases: $1,316M; treasury stock at cost as of December 27, 2025: $7,079M vs. $6,106M at December 28, 2024
• Q4 2025 common stock repurchases: $0; stock repurchases for tax withholding on employee equity plans Q4 2025: $160M
• Full year 2025 capital expenditures: $974M vs. $636M in full year 2024

• "2025 was a defining year for AMD, with record revenue and earnings driven by strong execution and broad-based demand for our high-performance and AI platforms. We are entering 2026 with strong momentum across our business, led by accelerating adoption of our high-performance EPYC and Ryzen CPUs and the rapid scaling of our data center AI franchise." — Dr. Lisa Su, AMD chair and CEO
• "Our record fourth quarter and full-year results demonstrate AMD's ability to deliver profitable growth at scale. We achieved record non-GAAP operating income and free cash flow, while increasing our strategic investments to support long-term growth across our high-performance and adaptive computing product portfolio." — Jean Hu, AMD executive vice president, CFO and treasurer

• Q1 2026 expected revenue: approximately $9.8B, plus or minus $300M
• Q1 2026 revenue midpoint represents approximately 32% growth year-over-year and approximately 5% sequential decline
• Q1 2026 expected non-GAAP gross margin: approximately 55%
• Q1 2026 guidance includes approximately $100M of AMD Instinct MI308 sales to China