Advanced Micro Devices (AMD) reported third-quarter revenue of $13.4 billion, a record that exceeded the high end of its prior guidance, as Data Center sales nearly doubled year over year.

The semiconductor company said Data Center segment revenue reached a record $8.5 billion, up 97% from a year earlier, driven by demand for AMD EPYC processors and the launch of AMD Instinct MI450 Series GPUs. That sequential increase of 27% was faster than the 16% Data Center sequential rise in the second quarter. Data Center operating income was $2.9 billion.

Chair and CEO Lisa Su said the company delivered a record quarter with revenue exceeding the high end of guidance as Data Center sales nearly doubled year over year. She said demand for Instinct and EPYC products continued to strengthen and that the company expects growth to accelerate further in the fourth quarter as it scales Helios and “Venice” production. Chief financial officer Jean Hu said third-quarter revenue grew 45% year over year and that non-GAAP earnings per share grew 74%, citing operating leverage as the Data Center business drives scale.

GAAP operating income was $2.8 billion, with operating margin of 21%. Non-GAAP operating income was $3.9 billion and non-GAAP operating margin was 29%. GAAP diluted earnings per share were $1.46; non-GAAP diluted earnings per share were $2.09. GAAP gross margin was 54% and non-GAAP gross margin was 56%.

Client and Gaming revenue was $3.7 billion, down 8% year over year after 6% growth in the prior quarter. Client business revenue was $2.9 billion, up 7% year over year, which the company attributed to sales of AMD Ryzen mobile processors. Gaming business revenue was $773 million, down 40% year over year, due to lower semi-custom and graphics revenue.

Embedded segment revenue was $1.1 billion, up 29% year over year, led by growth in aerospace and defense, automotive, communications and industrial end markets.

Adjusted EBITDA was $4.2 billion. Free cash flow was $554 million, with free cash flow margin of 4%. Cash, cash equivalents and short-term investments were $15.8 billion.

AMD said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on the first AMD Helios rackscale solutions, powered by Instinct MI450 Series GPUs and 6th Gen AMD EPYC CPUs. HPE announced that Vultr will deploy the first AMD Helios by HPE systems. The company also announced agreements to acquire World Labs and Taalas.

For the fourth quarter of 2026, AMD expects revenue of approximately $17 billion, plus or minus 3%. The midpoint of that range represents year-over-year growth of approximately 66% and a sequential increase of approximately 27%. Non-GAAP gross margin is expected to be approximately 55%.