AMD has reported record quarterly revenue of $13.4 billion for the third quarter of 2026, but its gaming business experienced a sharp decline. Gaming revenue fell 40% year-over-year to $773 million, while the company’s data center business nearly doubled to $8.5 billion. Meanwhile, revenue from Ryzen-based client processors increased 7%, highlighting significantly different performance across AMD’s gaming, consumer PC and enterprise hardware businesses.
The figures were disclosed in AMD’s official financial results on November 3, 2026. Total revenue increased 45% compared with the same quarter in 2025, reaching $13.377 billion. AMD also recorded GAAP net income of $2.43 billion, up 95% year-over-year, and operating income of $2.83 billion.
AMD attributed much of its growth to rising demand for EPYC server processors and Instinct AI accelerators, while weaker sales of semi-custom chips and graphics products weighed on its gaming operations.
AMD’s gaming business generated $773 million during the quarter, down from $1.298 billion in Q3 2025. That represents a decline of approximately $525 million, making gaming one of the weakest-performing areas of the company’s quarterly results.
Revenue was also slightly below the $779 million reported in the second quarter of 2026, indicating that gaming sales remained relatively flat sequentially despite the substantial annual decline.
AMD specifically attributed the year-over-year reduction to lower semi-custom and graphics revenue. Its gaming business includes semi-custom processors used in consoles alongside Radeon graphics products, although the company did not provide separate revenue figures for individual console customers or GPU families.
Consequently, the results do not establish how much of the decline came from console chip shipments compared with standalone Radeon graphics products.
The weaker gaming performance comes amid separate concerns about potential Radeon GPU price increases in November 2026, reportedly linked to rising GDDR6 memory costs. However, AMD’s earnings announcement does not directly connect those reported pricing changes to its quarterly gaming revenue decline.
AMD’s consumer processor business delivered a considerably different result. Client revenue reached $2.949 billion, increasing 7% from $2.750 billion a year earlier. AMD attributed the improvement primarily to sales of Ryzen mobile processors.
Although the client business grew annually, revenue declined from $3.062 billion in Q2 2026. Combined client and gaming revenue totaled $3.722 billion, representing an 8% year-over-year decline.
For PC enthusiasts, the distinction is important. AMD’s client category covers processors for consumer computers, including Ryzen products, while its gaming category includes Radeon graphics and semi-custom chips. The latest results therefore show that weaker gaming revenue did not prevent AMD’s broader consumer processor business from growing compared with the previous year.
The company’s data center division remained its largest growth driver, generating $8.546 billion in revenue compared with $4.341 billion in Q3 2025. That represents a 97% year-over-year increase, supported by strong demand for EPYC processors and the launch of Instinct MI450 Series GPUs.
Data center revenue accounted for approximately 64% of AMD’s total quarterly sales, compared with less than 6% from gaming. The scale of that difference illustrates how strongly AMD’s revenue mix has shifted toward server processors and AI computing hardware.
AMD Chair and CEO Lisa Su described the period as a record quarter, emphasizing strengthening demand for Instinct and EPYC products. The company expects further growth as production of its Helios rack-scale systems and Venice processors expands.
The changing balance between consumer computing and data center demand is also affecting the broader PC hardware industry. Intel's recent financial performance similarly highlighted the contrasting conditions facing PC and data center businesses, although the companies’ individual product portfolios and results differ.
AMD reported a GAAP gross margin of 54%, compared with 52% a year earlier. Non-GAAP earnings per share increased 74% to $2.09, while GAAP diluted earnings per share reached $1.46.
Looking ahead, AMD expects fourth-quarter 2026 revenue of approximately $17 billion, plus or minus 3%. The midpoint would represent approximately 66% annual growth and a 27% sequential increase. The company also forecasts a non-GAAP gross margin of approximately 55%.
Those projections are company-wide and do not provide a separate outlook for gaming revenue. AMD has not disclosed when its gaming business might return to year-over-year growth.
For gamers and PC hardware buyers, the third-quarter figures establish a clear contrast: AMD’s Ryzen client business continued expanding annually, while its gaming operations contracted substantially. At the same time, demand for data center hardware pushed the company’s overall revenue and profitability to new records.
