AMD (NASDAQ:AMD) has released its financial results for the fourth quarter and full year of 2025, showcasing remarkable growth and performance. The company reported a record revenue of $10.3 billion for Q4, with a gross margin of 54% and an operating income of $1.8 billion. Additionally, the net income reached $1.5 billion, equating to diluted earnings per share of $0.92. Notably, on a non-GAAP basis, gross margin was even higher at 57%, and operating income hit a record $2.9 billion.
"2025 was a defining year for AMD, with record revenue and earnings driven by strong execution and broad-based demand for our high-performance and AI platforms," said Dr. Lisa Su, AMD chair and CEO. This statement underscores the company’s confidence as it progresses into 2026, showcasing momentum attributed to the increasing adoption of its EPYC and Ryzen CPUs, as well as the growth of its data center AI franchise.
Overall, AMD's full year results for 2025 were equally impressive, reporting record revenue of $34.6 billion, a gross margin of 50%, and an operating income of $3.7 billion. Net income stood at $4.3 billion, which leads to diluted earnings per share of $2.65. On a non-GAAP basis, the numbers are even more striking, with gross margin at 52% and operating income reaching a record $7.8 billion, highlighting a successful year of growth.
“Our record fourth quarter and full-year results demonstrate AMD’s ability to deliver profitable growth at scale,” said Jean Hu, AMD executive vice president, CFO and treasurer. Hu added that record non-GAAP operating income and free cash flow were achieved while simultaneously increasing strategic investments for future growth in the high-performance and adaptive computing sectors.
A deeper look at the quarterly figures shows significant year-over-year growth in several metrics. For instance, the company achieved a 34% increase in revenue, up from $7.7 billion in Q4 2024. Gross profit increased to $5.6 billion, bolstered by a rise in operating income of 101% compared to the same quarter last year.
In terms of inventory and related operations, the fourth quarter benefited from a $360 million release of previously reserved AMD Instinct™ MI308 inventory and related charges. Moreover, AMD's revenue from MI308 products to China was recorded at approximately $390 million. Excluding these factors, the fourth quarter non-GAAP gross margin would be about 55%, a solid figure that illustrates the company's resilience.
Segment-wise analysis reveals that the embedded segment revenue reached $950 million, a 3% increase from the previous year, while the client and gaming segments performed outstandingly as well. The client segment revenue grew to $3.9 billion, a 37% year-over-year increase, predominantly led by high demand for AMD Ryzen™ processors. Within this, client revenue hit a record $3.1 billion, supported by continued market share gains.
The gaming segment showed exceptional growth too, with revenue hitting $843 million, representing a hefty 50% year-over-year increase, primarily due to robust semi-custom revenue and a strong demand for AMD Radeon™ GPUs. Overall, the well-rounded growth across different segments of the company exhibits AMD's strategic planning in navigating market demands effectively.
Looking forward, AMD appears well-positioned for continued success in 2026 and beyond, maintaining a solid foundation for growth in high-performance computing and AI technologies. With the industry landscape continuously evolving, AMD's proactive approach and impressive financial results highlight a commitment to innovation and excellence in the competitive technology arena.