AMD’s financial results for Q2 2025 have been released, and the GAAP Quarterly Financial Results are listed in the table below. Whether the perspective is Quarter-on-Quarter, or Quarter-Last-Year vs. Quarter-This-Year, the results are impressive.
Segment Summary
- Data Center segment revenue was US$3.2bn, up 14% year-over-year primarily driven by strong demand for AMD EPYC™ processors offsetting headwinds impacting AMD Instinct MI308 shipments to China. The cause of the impact was the US Government’s export control on AMD Instinct™ MI308 data center GPU products. For the quarter, these restrictions led to approximately US$800m in inventory and related charges. Excluding these charges, non-GAAP gross margin would have been approximately 54%.
- Client and Gaming segment revenue was $3.6bn, up 69% year-over-year. Client revenue was a record $2.5 billion, up 67% year-over-year primarily driven by strong demand for the latest “Zen 5” AMD Ryzen™ desktop processors and a richer product mix. Gaming revenue was $1.1bn, up 73% year-over-year driven by an increase in semi-custom revenue and strong AMD Radeon™ GPU demand.
- Embedded segment revenue was $824 million, down 4% year-over-year as demand in end markets remained mixed.
“We delivered strong revenue growth in the second quarter led by record server and PC processor sales,” said Dr. Lisa Su, AMD Chair and CEO. “We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year, driven by the ramp of our AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains.”
AMD took the opportunity to announce that it has entered into a definitive agreement to sell ZT Systems’ data center infrastructure manufacturing business to Sanmina for reportedly $3bn. As part of the future transaction, Sanmina will become a preferred new product introduction manufacturing partner for AMD cloud rack and cluster-scale AI solutions. The transaction is expected to close near the end of 2025, subject to regulatory approvals and customary closing conditions.
The decision for AMD to expand its CPU and GPU portfolio for gamers, creators and developers was clearly the right one. The new AMD Ryzen Threadripper™ 9000WX and Ryzen Threadripper PRO 9000X Series processors, the Radeon RX 9060 XT and the scalable Radeon AI PRO R9700 GPU, designed for local AI inference and complex creative workloads should contribute more growth in AMD’s gaming segment performance.
“We achieved 32% year-over-year revenue growth and generated record free cash flow this quarter, reflecting our disciplined execution,” said Jean Hu, AMD EVP, CFO and Treasurer. “Our strategic investments across hardware, software and systems position us well to support robust future growth and drive long-term shareholder value.”
GAAP Quarterly Financial Results
|
|
Q2 2025 |
Q2 2024 |
Y/Y |
Q1 2025 |
Q/Q |
|
Revenue ($M) |
$7,685 |
$5,835 |
Up 32% |
$7,438 |
Up 3% |
|
Gross profit ($M) |
$3,059 |
$2,864 |
Up 7% |
$3,736 |
Down 18% |
|
Gross margin |
40% |
49% |
Down 9 ppts |
50% |
Down 10 ppts |
|
Operating expenses ($M) |
$3,193 |
$2,595 |
Up 23% |
$2,930 |
Up 9% |
|
Operating income (loss) ($M) |
$(134) |
$269 |
Down 150% |
$806 |
Down 117% |
|
Operating margin |
(2)% |
5% |
Down 7 ppts |
11% |
Down 13 ppts |
|
Net income ($M) |
$872 |
$265 |
Up 229% |
$709 |
Up 23% |
This article contains forward-looking information, and caution should be exercised on comments about future events and/or financial transactions that may not occur.
