TLDR
- AMD beat Q1 earnings with EPS of $1.37 vs. $1.29 expected and revenue of $10.25B vs. $9.89B expected
- Data center revenue rose 57% year over year to $5.8B, beating estimates of $5.6B
- Q2 revenue guidance of $10.9B–$11.5B came in well above Wall Street’s $10.52B forecast
- CEO Lisa Su expressed strong confidence in delivering “tens of billions” in AI data center revenue by 2027
- AMD stock jumped over 12% in after-hours trading, adding to a 60% gain year to date
AMD posted a clean beat across the board in Q1, sending its stock up more than 12% in after-hours trading on Tuesday.
$AMD Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $10.25B (Est. $9.89B) 🟢; +38% YoY
🔹 Adj. EPS: $1.37 (Est. $1.28) 🟢; +43% YoY
🔹 Data Center Revenue: $5.8B (Est. $5.6B) 🟢; +57% YoY
🔹 Adj. Gross Margin: 55% (Est. 55.06%) 🔴; +1 ppt YoY
🔹 Data Center now the primary driver of… pic.twitter.com/trRFeAwXT2— Wall St Engine (@wallstengine) May 5, 2026
EPS came in at $1.37, ahead of the $1.29 consensus. Revenue hit $10.25 billion, topping the $9.89 billion Wall Street expected. A year ago, AMD posted EPS of $0.96 on revenue of $7.43 billion.
The stock was already up around 60% for the year before Tuesday’s results. After-hours, it pushed further, trading at $411.94 — up $56.68 from the regular session close of $355.26.
Advanced Micro Devices, Inc., AMD
Data center was the standout segment. Revenue there hit $5.8 billion, up 57% year over year and slightly above the $5.6 billion estimate. Operating margin in the segment came in at 28%, which was a touch below what analysts had penciled in.
Q2 guidance was the real headline-grabber. AMD guided for revenue between $10.9 billion and $11.5 billion — well above the $10.52 billion Wall Street had expected. Adjusted gross profit projections also came in above consensus.
The one soft spot: expense guidance was slightly above analyst estimates.
Lisa Su On AI Data Centers
CEO Lisa Su was direct on the earnings call. “We have strong and increasing confidence in our ability to deliver tens of billions of dollars in annual data center AI revenue in 2027,” she said, adding that AMD expects to exceed its long-term growth target of more than 80% in the coming years.
Su also highlighted the growing role of CPUs in AI infrastructure. She said the total addressable market for AMD’s CPU products could grow 35% annually, reaching $120 billion by 2030.
“As AI adoption scales, you need more inferencing and more agents. They all require CPUs for orchestration and data processing,” Su said.
AMD is preparing to launch its first rack-scale system, called Helios, which will combine its GPUs and CPUs into a single server rack — similar in concept to Nvidia’s NVL72 system.
AI Contracts and Key Tests Ahead
AMD has signed large deals with Meta Platforms and OpenAI, giving up warrants for up to 320 million AMD shares combined, which vest based on deliveries and performance. The company expects to begin shipping on those contracts in the second half of 2026 — a key test of its ability to scale.
Beyond data centers, AMD’s other segments held up well. Client revenue came in at $2.9 billion versus the $2.73 billion estimate. Gaming revenue hit $720 million, topping the $668 million forecast. Combined, non-data-center sales grew 19% to $4.5 billion.
Intel, which reported its own earnings on April 23, also beat expectations and saw its stock surge 24% on the strength of its data center business. AMD now joins that tailwind heading into Q2.
Global PC shipments are expected to fall 11.3% in 2026 due to a memory shortage, according to IDC. Apple’s Tim Cook flagged similar margin pressure from rising memory prices on last week’s earnings call.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
