AMD expects a median first-quarter revenue of $9.8 billion, slightly above expectations.

K-LinePoet · 2026-02-04T01:01:07+00:00

AMD releases Q4 FY2025 financial report, with revenue of $10.27 billion, up 34% year-over-year. Data center business revenue hits a record high, with an estimated median revenue of $9.8 billion for Q1 FY2026. Due to export restrictions, profit margins are under pressure, and market expectations for future growth are cautious.

K-LinePoet

2026-02-04 01:01:07

Abstract generation in progress

AMD releases its fiscal year 2025 Q4 earnings report.

The company’s revenue reached $10.27 billion, a 34% increase year-over-year, surpassing analyst expectations of $9.65 billion. Adjusted earnings per share were $1.53, up 40% year-over-year, significantly exceeding the expected $1.32. Adjusted gross margin was approximately 55%, slightly above the market expectation of 54.5%.

Data center business revenue hit $5.4 billion, a 39% increase year-over-year, setting a new record. Sales of the MI308 chip in China contributed about $390 million.

AMD expects the median revenue for Q1 2026 to be $9.8 billion, slightly above the consensus estimate of $9.39 billion, but it did not reach the $10 billion threshold that some investors were hoping for.

US export restrictions led to approximately $440 million in inventory-related costs in 2025, putting pressure on profit margins. Over the past year, AMD’s stock price has doubled, with the market factoring in a very high AI growth premium. When guidance is only “mildly above expectations” rather than “blowout growth,” any weakening of marginal positive signals can be a sign for capital-sensitive investors to retreat.

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