AMD reported record revenue of $10.253 billion for the first quarter of 2026, a 38% increase year over year. The company's data center division was the primary growth driver, contributing $5.8 billion in revenue, up 57% from the same period last year.
Server CPU sales jump over 50% year over year
Server CPU sales rose more than 50% year over year, while Instinct accelerator sales grew 38%. Client revenue reached $2.9 billion, up 26%. Gaming revenue increased 11% to $720 million, and embedded revenue climbed 6% to $873 million. GAAP net income nearly doubled to $1.383 billion, and gross margin hit 53%.
AMD expects Q2 2026 revenue of approximately $11.2 billion, plus or minus $300 million, with non-GAAP gross margin around 56%. The company forecasts server CPU revenue to grow by more than 70% year over year in the second quarter.
AMD raised its server CPU market forecast to $120 billion by 2030. However, the company warned that consumer and gaming revenue could decline more than 20% in the second half of 2026 due to higher memory and component costs. CEO Dr. Lisa Su said the company is working with supply chain partners to increase wafer and back-end capacity to meet demand for AI infrastructure.
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