Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 4, 2026 · Beat 6 of last 7 quarters
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AMD's record data center growth and raised TAM outlook underscore the accelerating AI infrastructure buildout, with both accelerators and server CPUs seeing surging demand. The company's expanding partnerships with hyperscalers and AI labs (Anthropic, Microsoft, OpenAI, Meta) signal continued multi-gigawatt deployments that will drive significant compute infrastructure investment through 2027 and beyond.
AMD delivered record Q2 2026 results with revenue of $11.5B, up 50% YoY, and EPS of $1.66, beating consensus. Data center revenue more than doubled to $6.7B, driven by strong EPYC and Instinct sales; server CPU revenue grew >70% YoY in both cloud and enterprise. Client revenue grew 23% YoY to $3.1B on record mobile revenue, while gaming declined 31% YoY to $779M due to console cycle and component costs. Embedded revenue grew 19% YoY to $977M, the strongest growth in over three years. The company announced a strategic partnership with Anthropic for up to 2GW of MI450 GPUs and expanded its Microsoft partnership for Helios deployments on Azure.
Management raised its long-term financial targets, now expecting revenue growth 'substantially above' the prior >35% target and EPS 'significantly exceed' the $20 annual target within the strategic timeframe. For Q3 2026, AMD guided revenue to approximately $13.0B ±$300M (up 41% YoY) with gross margin around 56%. The company raised its data center AI accelerator TAM outlook to ~$1.4 trillion by 2030 (from prior ~$1 trillion) and server CPU TAM to ~$220 billion by 2030, citing accelerating AI adoption. Server CPU revenue is expected to grow >80% YoY in 2H26 and >70% in 2027, while data center segment revenue is expected to more than double in 2027. Helios shipments begin later this quarter, ramping through Q4 and into 2027, with strong customer pull and a new partnership with Anthropic for up to 2GW of MI450 GPUs. Management noted improved server CPU supply and expects further improvement in 2027 as demand becomes better forecasted.
“We are still in the early stages of a multiyear AI adoption cycle as deployments grow across a broad set of markets and workloads, driving demand for more compute and creating a clear path to significant revenue growth and earnings power in the years ahead.”
on AI adoption cycle
“Customer pull for Helios is very strong and tracking ahead of our initial forecast.”
on Helios demand
“We now expect revenue to grow substantially above our prior target of greater than 35%, and we expect to significantly exceed our $20 annual EPS target within our strategic timeframe.”
on Long-term financial targets
When do you see the crossover point happening in the data center GPU business and the CPU business? Where are you seeing the most strength into 2027?
Lisa Su said both businesses are growing strongly, with server CPU growing over 80% in 2H26 and data center AI growing substantially, especially with Helios ramping in 2027. She noted the data center AI TAM is larger, so expect substantial growth there, but both are significant drivers.
Of the growth between Q2 and Q3, which will grow more on a dollar basis, CPU or GPU? And does your 80% half-on-half number imply server CPU might not grow much in Q4?
Lisa Su clarified that both server CPU and data center AI will grow nicely in Q3 and Q4, with server CPU growing substantially. She said Q3 data center segment will grow double digits sequentially, with more growth in Q4 as Helios ramp becomes more substantial.
How many gigawatts of compute does AMD have line of sight into for 2027 and what is the monetization per gigawatt?
Lisa Su said they have strong visibility with strategic customers (OpenAI, Meta, Anthropic) and expect data center segment to more than double in 2027. She confirmed revenue per gigawatt is in the 'double-digit billions' range, and they have supply to meet guidance with upside potential.