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November 5, 2025 • 3 min read
Semiconductor giant Advanced Micro Devices (AMD) just dropped its latest quarterly report, and it’s packed with noteworthy figures that offer a clear view of the company's health and strategic direction. Let's dive into the numbers from their Q3 2025 Form 10-Q filing and see what they tell us about the chip maker's recent performance.
AMD's third-quarter results show impressive top-line growth. The company posted net revenue of $9.2 billion, a substantial 36% increase from the $6.8 billion reported in the same quarter last year. This growth wasn't just on paper; it flowed straight through to the bottom line.
Operating income jumped to $1.3 billion, up from $724 million a year ago, while net income rose to $1.2 billion from $771 million. The company's gross margin also improved, ticking up to 52% from 50% year-over-year, indicating better profitability on its products.
To get a clearer picture of how AMD generates its income, the following flow diagram visualizes the company's quarterly revenue streams and how they are transformed into profit after accounting for various costs.
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Digging into the segment performance reveals where AMD's growth is truly accelerating.
Data Center: This segment, which includes server CPUs and data center GPUs, continued its solid performance, with revenue growing 22% year-over-year to $4.3 billion. However, operating income was relatively flat at $1.1 billion, suggesting increased investment in this highly competitive space.
Client and Gaming: This is where the real fireworks happened. This combined segment, which includes CPUs for desktops and notebooks as well as GPUs and semi-custom chips for game consoles, saw its revenue skyrocket by 73% to $4.0 billion from $2.3 billion last year. The growth was driven by both Client revenue (up 46% to $2.75 billion) and a massive surge in Gaming revenue (up 181% to $1.3 billion). Consequently, the segment's operating income nearly tripled to $867 million.
Embedded: The Embedded segment, which serves markets like networking and industrial applications, was the only one to see a slight downturn, with revenue dipping 8% to $857 million.
Beyond the quarterly numbers, the filing sheds light on a major strategic move: the acquisition of ZT Systems, which closed on March 31, 2025, for a total of $4.4 billion ($3.2 billion in cash and $860 million in stock).
Interestingly, AMD's balance sheet now shows $4.0 billion in "Assets held for sale" and $1.9 billion in "Liabilities held for sale." These are related to the ZT Manufacturing Business, which AMD plans to divest. This indicates a targeted acquisition strategy, where AMD is looking to integrate specific high-value assets from ZT Systems while shedding the manufacturing components that don't align with its fabless business model.
Even with the significant cash outlay for the acquisition, AMD's financial position remains strong. Its cash, cash equivalents, and short-term investments stood at a healthy $7.2 billion as of September 27, 2025.
AMD's Q3 performance demonstrates powerful momentum, especially in its consumer-facing Client and Gaming businesses. The strong demand for its products in these areas, coupled with steady growth in the crucial Data Center market, paints a bullish picture. The company is not only executing well on its product roadmap but is also making decisive strategic moves to sharpen its focus. As it continues to navigate the highly competitive semiconductor landscape, these results suggest AMD is well-positioned for the challenges ahead.
Last updated: November 5, 2025