AMD's Q2 2026 revenue climbed 50% to $11.54 billion and data center sales more than doubled, beating Wall Street's estimates across the board. The stock still sank more than 10% in extended trading, and the chipmaker's Q3 guidance topped analyst estimates too.
Shares of AMD sank more than 10% in extended trading Tuesday. The move came despite the chipmaker beating Wall Street's estimates on both revenue and profit for the quarter ended June 27.
Adjusted earnings per share came in at $1.66, above the $1.62 analysts expected. Revenue climbed 50% to $11.54 billion from $7.69 billion a year earlier.
Data center sales more than double
The Data Center unit drove the quarter. Sales there reached $6.7 billion, up 107% from a year ago, which AMD attributed to combined CPU and GPU demand.
Client and gaming revenue, covering laptops and consoles, grew 6% to $3.8 billion. The embedded chip segment, meanwhile, rose 19% to $977 million. Overall net income reached $2.3 billion, or $1.38 per diluted share, up from $872 million, or 54 cents per diluted share, a year earlier.
AMD CFO Jean Hu said in a statement: "We expect Data Center sales to accelerate in the second half of 2026".
Guidance and spending top forecasts
For the current quarter, AMD guided revenue to about $13 billion, plus or minus $300 million. That topped Wall Street's $12.52 billion estimate.
Some analysts, however, had been looking for guidance as high as $14 billion. Adjusted operating margin, meanwhile, held at 27% for the quarter. Capital expenditure also reached $808 million, well above the $298.6 million analysts had modeled.
Beyond the numbers, AMD's first rack-scale AI system, Helios, is due to ship this year to Meta, OpenAI, and Oracle. Unlike AMD's individual chips, Helios competes more directly with Nvidia's systems.
Sources: CNBC, InvestingLive
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