AMD Reports Q1 Revenue of $10.3B (+38%) and Exits Russell Value Index
AMD reported full-year 2025 revenue of $34.64B (+34.3%) and GAAP net income of $4.33B (+164%), with Q4 free cash flow margin widening to 20%. In Q1 2026, revenue rose 38% to $10.3B, data-center sales jumped 57%, and guidance for Q2 at $11.2B implies 46% growth, while AMD exited Russell’s value index and its server-CPU share climbed to 33.2%, challenging Intel’s 66.8% stake.
1. Robust 2025 Financials
AMD closed 2025 with revenue of $34.64 billion, up 34.3% year-over-year, GAAP net income of $4.33 billion (+164%), and free cash flow of $5.52 billion (+130%) on a 16% margin. Q4 alone generated $10.27 billion in revenue (+34%) and $2.08 billion in free cash flow at a 20% margin, with gross margins at 57% and cash plus short-term investments of $10.55 billion against $3.22 billion in debt.
2. Accelerating Q1 2026 Performance
In Q1 2026 AMD delivered $10.3 billion in revenue, up 38% year-over-year and above its own guidance, with non-GAAP EPS of $1.37 versus a $1.27 consensus. Data Center revenue hit $5.8 billion (+57%) generating $1.6 billion in operating income, free cash flow tripled to $2.6 billion, and Q2 guidance of $11.2 billion implies 46% growth.
3. Index Shift and Competitive Dynamics
The May Russell index reconstitution removed AMD from value-stock status, potentially reducing passive inflows. AMD’s server-CPU market share rose to 33.2% from 27.2% last year, intensifying pressure on Intel’s 66.8% stake. Strategic multi-year agreements with major AI buyers underpin the outlook, even as U.S. export curbs cost roughly $1.5 billion in 2025 and new licensing adds $800 million of headwinds.