AMD Reports Second Quarter 2025 Financial Results
SANTA CLARA, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced financial results for the second quarter of 2025. Second quarter revenue was a record $7.7 billion, gross margin was 40%, operating loss was $134 million, net income was $872 million and diluted earnings per share was $0.54. On a non-GAAP(*) basis, gross margin was 43%, operating income was $897 million, net income was $781 million and diluted earnings per share was $0.48. As previously announced, our second quarter results were impacted by the U.S. Government's export control on our AMD Instinct™ MI308 data center GPU products. For the quarter, these restrictions led to approximately $800 million in inventory and related charges. Excluding these charges, non-GAAP gross margin would have been approximately 54%.
"We delivered strong revenue growth in the second quarter led by record server and PC processor sales," said Dr. Lisa Su, AMD Chair and CEO. "We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year, driven by the ramp of our AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains."
"We achieved 32% year-over-year revenue growth and generated record free cash flow this quarter, reflecting our disciplined execution," said Jean Hu, AMD EVP, CFO and Treasurer. "Our strategic investments across hardware, software and systems position us well to support robust future growth and drive long-term shareholder value."
GAAP Quarterly Financial Results
Q2 2025
Q2 2024
Y/Y
Q1 2025
Q/Q
Revenue ($M)
$7,685
$5,835
Up 32%
$7,438
Up 3%
Gross profit ($M)
$3,059
$2,864
Up 7%
$3,736
Down 18%
Gross margin
40%
49%
Down 9 ppts
50%
Down 10 ppts
Operating expenses ($M)
$3,193
$2,595
Up 23%
$2,930
Up 9%
Operating income (loss) ($M)
$(134)
$269
Down 150%
$806
Down 117%
Operating margin
(2)%
5%
Down 7 ppts
11%
Down 13 ppts
Net income ($M)
$872
$265
Up 229%
$709
Up 23%
Diluted earnings per share
$0.54
$0.16
Up 238%
$0.44
Up 23%
Non-GAAP(*) Quarterly Financial Results
Q2 2025
Q2 2024
Y/Y
Q1 2025
Q/Q
Revenue ($M)
$7,685
$5,835
Up 32%
$7,438
Up 3%
Gross profit ($M)
$3,326
$3,101
Up 7%
$3,992
Down 17%
Gross margin
43%
53%
Down 10 ppts
54%
Down 11 ppts
Operating expenses ($M)
$2,429
$1,837
Up 32%
$2,213
Up 10%
Operating income ($M)
$897
$1,264
Down 29%
$1,779
Down 50%
Operating margin
12%
22%
Down 10 ppts
24%
Down 12 ppts
Net income ($M)
$781
$1,126
Down 31%
$1,566
Down 50%
Diluted earnings per share
$0.48
$0.69
Down 30%
$0.96
Down 50%
Segment Summary
Data Center segment revenue was $3.2 billion, up 14% year-over-year primarily driven by strong demand for AMD EPYC™ processors more than offsetting headwinds impacting AMD Instinct MI308 shipments to China.
Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year. Client revenue was a record $2.5 billion, up 67% year-over-year primarily driven by strong demand for the latest "Zen 5" AMD Ryzen™ desktop processors and a richer product mix. Gaming revenue was $1.1 billion, up 73% year-over-year driven by an increase in semi-custom revenue and strong AMD Radeon™ GPU demand.
Embedded segment revenue was $824 million, down 4% year-over-year as demand in end markets remained mixed.
Recent PR Highlights
At Advancing AI 2025, AMD announced its latest AI solutions, roadmap and vision for an open AI ecosystem alongside partners including Meta, OpenAI, xAI, Oracle and Microsoft. Event announcements included:
AMD Instinct MI350 Series GPUs and systems, with leadership performance, efficiency and scalability for generative AI and high-performance computing.
Next-generation "Helios" rack-scale solution powered by AMD Instinct MI400 GPUs, AMD EPYC "Venice" CPUs and AMD Pensando™ "Vulcano" NICs.
AMD ROCm™ 7 platform, the newest version of the AMD open-source AI software stack, delivering expanded support, tools and enterprise capabilities.
The AMD Developer Cloud, a platform to provide open-source contributors and developers with on-demand access to high-performance AMD Instinct MI300X GPUs.
Strategic AMD partners announced data center and AI infrastructure and services powered by AMD Instinct GPUs and EPYC CPUs:
HUMAIN and AMD announced a strategic collaboration to advance global AI infrastructure by deploying 500 megawatts of AI compute capacity over the next five years.
Red Hat and AMD expanded their strategic collaboration to deliver high-performance AI inference with vLLM on AMD Instinct GPUs along with Red Hat OpenShift Virtualization on AMD EPYC CPUs for optimized enterprise application deployment across the hybrid cloud.
AMD and KDDI announced an agreement to leverage 4th Gen AMD EPYC CPUs for its advanced 5G virtualized network.
Nokia will use 5th Gen AMD EPYC processors to power its Nokia Cloud Platform, bringing leadership performance and performance-per-watt to next-generation telecom infrastructure.
Dell announced the new Dell AI platform including the Dell PowerEdge XE9785 and XE9785L servers that maximize performance and efficiency with AMD Instinct MI350 Series GPUs and AMD EPYC CPUs.
AMD announced the availability of the AMD EPYC 4005 Series processors designed to deliver enterprise-class features and leadership performance for growing businesses and hosted IT service providers.
AMD now powers 172 supercomputers on the latest Top500 Supercomputers list, including the top two, El Capitan and Frontier, and 12 of the top 20 systems on the Green500 list.
AMD expanded its CPU and GPU portfolio for gamers, creators and developers:
AMD announced the AMD Ryzen Threadripper™ 9000WX and Ryzen Threadripper PRO 9000X Series processors enabling leadership workstation compute for the most demanding workloads.
AMD launched the Radeon RX 9060 XT with leadership gaming performance-per-dollar.
AMD announced the AMD Radeon AI PRO R9700 GPU, designed for local AI inference, model finetuning and complex creative workloads, with scalability for multi-GPU systems.
AMD is continuing to expand its portfolio of leadership embedded solutions for a broad set of markets:
Began shipments of the first AMD Spartan™ UltraScale+™ FPGA devices, delivering performance, low power, security features and reliability for cost-sensitive edge applications.
Bosch and AMD are collaborating on next-generation robotaxi services in Europe which includes a pilot program leveraging the AMD Versal™ device to support security and real-time encryption.
AMD announced that it has entered into a definitive agreement to sell ZT Systems' data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock, inclusive of a contingent payment of up to $450 million. As part of the transaction, Sanmina will become a preferred new product introduction manufacturing partner for AMD cloud rack and cluster-scale AI solutions. The transaction is expected to close near the end of 2025, subject to regulatory approvals and customary closing conditions.
Current OutlookAMD's outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.
For the third quarter of 2025, AMD expects revenue to be approximately $8.7 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 28% and sequential growth of approximately 13%. Non-GAAP gross margin is expected to be approximately 54%. Our current outlook does not include any revenue from AMD Instinct MI308 shipments to China as our license applications are currently under review by the U.S. Government.
AMD TeleconferenceAMD will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its second quarter 2025 financial earnings results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data) (Unaudited)
Three Months Ended
June 28,2025
March 29,2025
June 29,2024
GAAP gross profit
$
3,059
$
3,736
$
2,864
GAAP gross margin
40
%
50
%
49
%
Stock-based compensation
6
5
5
Amortization of acquisition-related intangibles
260
251
231
Acquisition-related and other costs (1)
1
—
1
Non-GAAP gross profit
$
3,326
$
3,992
$
3,101
Non-GAAP gross margin
43
%
54
%
53
%
GAAP operating expenses (2)
$
3,193
$
2,930
$
2,595
GAAP operating expenses/revenue %
42
%
39
%
44
%
Stock-based compensation
363
359
341
Amortization of acquisition-related intangibles
308
316
372
Acquisition-related and other costs (1)
93
42
45
Non-GAAP operating expenses (2)
$
2,429
$
2,213
$
1,837
Non-GAAP operating expenses/revenue %
32
%
30
%
31
%
GAAP operating income (loss)
$
(134
)
$
806
$
269
GAAP operating margin
(2
)
%
11
%
5
%
Stock-based compensation
369
364
346
Amortization of acquisition-related intangibles
568
567
603
Acquisition-related and other costs (1)
94
42
46
Non-GAAP operating income
$
897
$
1,779
$
1,264
Non-GAAP operating margin
12
%
24
%
22
%
Three Months Ended
June 28,2025
March 29,2025
June 29,2024
GAAP net income / earnings per share
$
872
$
0.54
$
709
$
0.44
$
265
$
0.16
(Gains) losses on equity investments, net
(61
)
(0.04
)
2
—
—
—
Stock-based compensation
369
0.23
364
0.22
346
0.21
Equity income in investee
(8
)
—
(7
)
—
(7
)
—
Amortization of acquisition-related intangibles
568
0.35
567
0.35
603
0.37
Acquisition-related and other costs (1)
96
0.05
42
0.03
46
0.03
Release of reserves for uncertain tax positions (3)
(853
)
(0.52
)
—
—
—
—
Income tax provision
(98
)
(0.06
)
(111
)
(0.08
)
(127
)
(0.08
)
Income from discontinued operations, net of tax (4)
(104
)
(0.07
)
—
—
—
—
Non-GAAP net income / earnings per share
$
781
$
0.48
$
1,566
$
0.96
$
1,126
$
0.69
(1) Acquisition-related and other costs primarily include transaction costs, purchase price fair value adjustments for inventory, certain compensation charges and workforce rebalancing charges.(2) Effective first quarter of 2025, licensing gain is reclassified against Marketing, general and administrative expenses as the amounts were immaterial.(3) Release of reserves for uncertain tax positions pertains to the reasonable cause relief related to dual consolidated losses approved by IRS in Q2'25. (4) Income from discontinued operations is related to ZT Systems' manufacturing business which is classified as held-for-sale.
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
(Millions) (Unaudited)
Three Months Ended
June 28,2025
GAAP gross profit
$
3,059
GAAP gross margin
40
%
Stock-based compensation, amortization of acquisition-related intangibles, acquisition-related and other costs
267
Inventory and related charges associated with U.S. export restrictions
800
Non-GAAP gross profit (as adjusted to exclude inventory and related charges associated with U.S. export restrictions)
$
4,126
Non-GAAP gross margin (as adjusted to exclude inventory and related charges associated with U.S. export restrictions)
54
%
About AMDFor more than 55 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ:AMD) website, blog, LinkedIn and X pages.
Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as, the features, functionality, performance, availability, timing and expected benefits of future AMD products; AMD's ability to position itself to deliver significant growth in second half 2025; AMD's ability to position itself to support robust future growth and drive long-term shareholder value based on its strategic investments; AMD's anticipated sale of ZTGroup Int'l, Inc.'s (ZT Systems) data center infrastructure manufacturing business and expected benefits and timing of the transaction; AMD's expected third quarter 2025 financial outlook, including revenue and non-GAAP gross margin; and the expected impact of export licensing requirements on AMD, including on its revenues and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, tariffs and trade protection measures, and licensing requirements; competitive markets in which AMD's products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD's ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD's products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD's products; AMD's reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD's products; AMD's reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD's internal business processes and information systems; compatibility of AMD's products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD's supply chain; AMD's ability to rely on third party supply-chain logistics functions; AMD's ability to effectively control sales of its products on the gray market; impact of climate change on AMD's business; AMD's ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD's notes, the guarantees of Xilinx's notes, the revolving credit agreement and the ZT Systems credit agreement; impact of acquisitions, joint ventures and/or strategic investments on AMD's business and AMD's ability to integrate acquired businesses, including ZT Systems; AMD's ability to complete the sale of ZT Systems' manufacturing business; impact of any impairment of the combined company's assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD's ability to attract and retain qualified personnel; and AMD's stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's most recent reports on Forms 10-K and 10-Q.
(*)
In this earnings press ...
