We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AMD Beats on Earnings, Raises Guidance on AI and Data Center Growth
Read MoreHide Full Article
Advanced Micro Devices, Inc. (AMD - Free Report) reported first-quarter 2026 earnings of $1.37 per share, which beat the Zacks Consensus Estimate of $1.30 and rose from 96 cents a year earlier. This marks an 5.59% earnings surprise. In the prior quarter, it posted $1.53, topping the consensus mark of $1.32, delivering a 15.91% surprise. The company exceeded earnings estimates in each of the past four quarters.
Revenue for the March 2026 quarter came in at $10.25 billion, topping expectations by 4.09% and up from $7.44 billion last year. AMD has also beaten revenue estimates in each of the last four quarters. Free cash flow reached $2.57 billion in the quarter compared with $727 million in the first quarter of 2025.
The data center business led this performance, delivering $5.8 billion in revenue, a 57% year-over-year increase, supported by strong demand for AMD EPYC processors and continued shipments of AMD Instinct GPUs. The client and gaming segment generated $3.6 billion, rising 23% from a year ago, while the embedded division reported $873 million in revenue, reflecting 6% growth.
The company delivered a strong first quarter, driven by accelerating demand for AI infrastructure, with the data center segment emerging as the primary contributor to revenue and earnings growth. The momentum is being supported by the rising adoption of high-performance CPUs and accelerators, fueled by inferencing and agentic AI workloads. Server growth is expected to pick up further as supply scales to meet demand, while increasing customer engagement around newer platforms like the MI450 series and Helios, along with a growing pipeline of large-scale deployments, provides improved visibility into future growth.
For second-quarter 2026, AMD expects revenues of around $11.2 billion, with a possible variation of $300 million on either side, implying roughly 46% year-over-year growth.
AMD, which belongs to the Zacks Computer - Integrated Systems industry, currently boasts a Zacks Rank #1 (Strong Buy), and its shares have gained 65.9% year to date. In the same period, two of its peers, Micron Technology, Inc. (MU - Free Report) and International Business Machines Corporation (IBM - Free Report) , have gained 124.3% and lost 22.7%, respectively. While MU also carries a #1, IBM has a #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom Line
AMD’s performance over the first quarter indicates strength across key financial metrics, including faster revenue growth, expanding earnings and record quarterly free cash flow. This suggests effective execution and growing operating leverage, enabling continued investment in expansion while improving profitability.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
AMD Beats on Earnings, Raises Guidance on AI and Data Center Growth
Advanced Micro Devices, Inc. (AMD - Free Report) reported first-quarter 2026 earnings of $1.37 per share, which beat the Zacks Consensus Estimate of $1.30 and rose from 96 cents a year earlier. This marks an 5.59% earnings surprise. In the prior quarter, it posted $1.53, topping the consensus mark of $1.32, delivering a 15.91% surprise. The company exceeded earnings estimates in each of the past four quarters.
Revenue for the March 2026 quarter came in at $10.25 billion, topping expectations by 4.09% and up from $7.44 billion last year. AMD has also beaten revenue estimates in each of the last four quarters. Free cash flow reached $2.57 billion in the quarter compared with $727 million in the first quarter of 2025.
The data center business led this performance, delivering $5.8 billion in revenue, a 57% year-over-year increase, supported by strong demand for AMD EPYC processors and continued shipments of AMD Instinct GPUs. The client and gaming segment generated $3.6 billion, rising 23% from a year ago, while the embedded division reported $873 million in revenue, reflecting 6% growth.
The company delivered a strong first quarter, driven by accelerating demand for AI infrastructure, with the data center segment emerging as the primary contributor to revenue and earnings growth. The momentum is being supported by the rising adoption of high-performance CPUs and accelerators, fueled by inferencing and agentic AI workloads. Server growth is expected to pick up further as supply scales to meet demand, while increasing customer engagement around newer platforms like the MI450 series and Helios, along with a growing pipeline of large-scale deployments, provides improved visibility into future growth.
For second-quarter 2026, AMD expects revenues of around $11.2 billion, with a possible variation of $300 million on either side, implying roughly 46% year-over-year growth.
AMD, which belongs to the Zacks Computer - Integrated Systems industry, currently boasts a Zacks Rank #1 (Strong Buy), and its shares have gained 65.9% year to date. In the same period, two of its peers, Micron Technology, Inc. (MU - Free Report) and International Business Machines Corporation (IBM - Free Report) , have gained 124.3% and lost 22.7%, respectively. While MU also carries a #1, IBM has a #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom Line
AMD’s performance over the first quarter indicates strength across key financial metrics, including faster revenue growth, expanding earnings and record quarterly free cash flow. This suggests effective execution and growing operating leverage, enabling continued investment in expansion while improving profitability.