AMD cracks $10 billion quarterly revenue for the first time
The year 2025 was pleasing for AMD, including a sales record for Ryzen CPUs. Nevertheless, the stock falls by over ten percent.
(Image: Andreas Wodrich / heise medien)
AMD's streak continues: the company is also closing the fourth quarter of 2025 with record revenue. AMD exceeds its forecast and cracks the $10 billion revenue mark for the first time in its company history. It reached nearly $10.3 billion, 34 percent more than a year earlier and 11 percent more than in the previous quarter.
Thanks to higher average prices, profit is increasing even more. In the business report, AMD names an operating profit of nearly $1.8 billion for the quarter and a net profit of $1.5 billion. Compared to the fourth quarter of 2024, this corresponds to a doubling and a good tripling, respectively. Net profit is rising so sharply because AMD booked $186 million for restructuring at the end of 2024, among other things.
The entire year 2025 can also be seen favorably. AMD reports revenues of a good $34.6 billion (+34 percent), operating profit of $3.7 billion (+94 percent), and net profit of $4.3 billion (+164 percent). The latter is higher because AMD booked a tax advantage of $103 million and income from other sources of $577 million, among other things. These are primarily unrealized gains from long-term investments.
Epyc and Instinct grow
The two core divisions, Data Center and Client & Gaming, have grown significantly in 2025. Hardware for data centers brings AMD the most money again, but the gap is shrinking.
Epyc processors and Instinct accelerators generated $16.6 billion over the entire year, an increase of 32 percent. According to AMD, Epycs are performing consistently strongly, while the production of Instinct GPUs is being ramped up. With the MI400 series and Epyc Venice, the outlook is positive. Operating profit is only increasing slightly to $3.6 billion due to higher investments.
Since the end of 2025, AMD has also been allowed to sell adjusted AI accelerators to China again. Previously tax-deducted Instinct-MI308 models are now bringing in $390 million. Sales are expected to continue in 2026.
AMDs Umsatz aufgeschlĂĽsselt (5 Bilder)
AMD
)Ryzen record
Client & Gaming, on the other hand, improved by 51 percent to $14.6 billion in annual revenue. The division includes all Ryzen processors, Radeon graphics cards, and console chips, for example for the Playstation 5 and Xbox Series X/S. Operating profit increased by 141 percent to $2.9 billion due to a favorable product mix.
AMD reports a sales record for Ryzen processors in the past quarter. There, they accounted for almost 79 percent of the division's revenue with $3.1 billion – 34 percent more than a year earlier. Graphics cards and console chips generated $843 million in quarterly revenue (+50 percent).
Only the Embedded division with products from the acquired FPGA specialist Xilinx is declining. Annual revenue decreased by three percent to nearly $3.5 billion, and operating profit by 13 percent to a good $1.2 billion.
In the complete year, AMD spent $8.1 billion on research and development, 25 percent more than in 2024. Marketing and administrative costs increased by 52 percent to $4.1 billion.
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Sell-off on the stock market
In the current first quarter of 2026, AMD expects revenue of $9.8 billion (+/- 300 million). On average, revenue will therefore only decrease by five percent compared to the last result, which is a good figure considering the traditionally weak start to the year. Compared to the first quarter of 2025, this would correspond to 32 percent growth.
Meanwhile, the stock market is not pleased with the business report, even though AMD has beaten its expectations and market forecasts. The stock has fallen by over ten percent since the announcement.
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