Key facts
- AMD's gaming revenue fell 40 percent year-on-year to $773 million in third-quarter 2026.
- AMD plans to outperform the market with its Ryzen roadmap and grow its commercial footprint in 2027.
- AMD reported third-quarter 2026 revenue of $13.4 billion, up 97 percent from the previous year, according to TweakTown.
- CEO Lisa Su cited declining semi-custom sales for consoles and handhelds as the primary cause of the gaming revenue drop during the Q3 earnings call.
AMD reported third-quarter 2026 revenue of $13.4 billion for the quarter ended September 26, 2026, while gaming revenue fell 40 percent year-on-year to $773 million.
Net income reached $2.4 billion, a 95 percent year-over-year gain, Thurrott.com reported as part of the quarterly results. AMD described the period as its largest and most profitable quarter ever, according to Digital Foundry.
Thurrott.com and Digital Foundry calculated total revenue growth at 45 percent year-over-year, a record for the fiscal third quarter. TweakTown reported a 97 percent increase from the previous year. Digital Foundry linked the 45 percent revenue increase to the AI boom.
Digital Foundry said the AI boom led to revenues in other areas for AMD as the company celebrated the quarter. TweakTown attributed the revenue strength to the Data Center segment and its Instinct and EPYC products as AI demand continued.
AMD’s Data Center segment delivered record revenues of $8.5 billion, a 97 percent year-over-year gain, Thurrott.com said. Chair and CEO Dr. Lisa Su said Data Center sales nearly doubled year-over-year as the company delivered a record quarter. Strong demand for EPYC processors and the launch of Instinct MI450 Series GPUs drove the results. Thurrott.com said AMD expects fourth-quarter growth to speed up as Helios and Venice production scales.
Thurrott.com characterized AMD’s AI datacenter chip bet as an effort to compete with Nvidia that has fallen short of that goal so far. The outlet said the AI datacenter push drives all growth and most revenues. It also said the bet has helped AMD overcome a major PC market downturn driven by a component crisis from the wider industry AI datacenter bet. Su also cited strengthening demand for Instinct and EPYC products, Thurrott.com reported.
AMD’s Client and Gaming segment revenue reached $3.7 billion, down 8 percent year-over-year, according to TweakTown and Thurrott.com. TweakTown breaks the segment into Client and Gaming components. Thurrott.com reports the same $3.7 billion total and 8 percent decline.
TweakTown reported Client business revenue of $2.9 billion, up 7 percent year-over-year, while Thurrott.com reported $2.6 billion, also up 7 percent. TweakTown says the Client side covers Ryzen products and was up 7 percent within the $3.7 billion total. Thurrott.com reports Client revenue inside the segment alongside Gaming revenue. AMD said strong sales of Ryzen mobile processors for laptops and mini PCs drove Client revenue growth rather than its desktop lineup.
CEO Lisa Su cited declining semi-custom sales for consoles and handhelds as the primary cause of the gaming revenue drop during the Q3 earnings call, Digital Foundry reported. Digital Foundry reported Su’s comments immediately after noting the decline.
AMD attributed the gaming decline to lower semi-custom and graphics revenue covering PlayStation 5, Xbox Series X|S, Radeon RX 9000 Series GPUs, Steam Deck, ASUS ROG Xbox Ally X, and Lenovo Legion Go 2, according to TweakTown.
These console, GPU, and handheld devices have all seen price increases over the past year, according to AMD via TweakTown. TweakTown linked the price increases to the lower semi-custom and graphics revenue driving the gaming decline.
Digital Foundry tied the gaming drop to sliding semi-custom sales. TweakTown tied it to lower semi-custom and graphics revenue. Thurrott.com placed the decline within the Client and Gaming segment decline.
AMD’s Embedded segment recorded revenues of $1.1 billion, up 29 percent year-over-year, Thurrott.com reported. Aerospace and defense, automotive, communications, and industrial sales led growth. Thurrott.com reports Embedded revenue after Client and Gaming in its segment breakdown.
AMD forecast a double-digit percentage drop in computers shipped for the PC market in 2027. Digital Foundry reported that Su stated the PC market will continue to decline in 2027, while TweakTown said AMD is actively planning for the decline due to higher memory and component costs.
AMD plans to outperform the market with its Ryzen roadmap and grow its commercial footprint in 2027. Su used the phrase “outperform the market” in describing the strategy, according to Digital Foundry.
The company debuted its first Zen 6 processors as Epyc workstation parts, with the same core technology expected to reach desktop products in 2027, Digital Foundry said. Digital Foundry also said the 2027 roadmap should see the same Zen 6 core technology come to desktop after the Epyc workstation debut.
AMD’s Radeon AI PRO Series workstation and AI-focused GPUs are seeing significant growth, and the company expects that trend to continue, TweakTown reported. TweakTown contrasted that growth with struggling desktop CPU and GPU sales caused by higher memory and component costs.
Digital Foundry expects Sony and Xbox to use Zen 6 chipsets in their upcoming PS6 and Project Helix consoles. The outlet said PC parts could offer a better idea of next-generation console performance and that it will look toward new AMD parts with interest.
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