Abstract

Advanced Micro Devices will report fiscal Q4 2025 results on February 03, 2026 Post Market; this preview compiles consensus, company guidance, and major institutional commentary to frame expectations on revenue, margins, and adjusted EPS with a focus on data center momentum and segment mix.

Market Forecast

Consensus and company-aligned projections imply fiscal Q4 2025 revenue of USD 9.65 billion, adjusted EPS of USD 1.31, and EBIT of USD 2.43 billion, with year-over-year revenue growth of 28.23% and adjusted EPS growth of 21.91%. Margin expectations suggest gross profit margin remaining robust, while net profitability trends steady; adjusted EPS is guided higher year over year, supported by mix shift toward higher-margin compute. The main business highlight centers on data center compute and GPUs, with continued traction across AI accelerators and server CPUs; customer and gaming remain stable while embedded normalizes. The most promising segment is Data Center, with last quarter revenue of USD 4.34 billion and strong demand signals that underpin double-digit year-over-year expansion expectations.

Last Quarter Review

In fiscal Q3 2025, Advanced Micro Devices reported revenue of USD 9.25 billion, gross profit margin of 54.51%, GAAP net profit attributable to the parent company of USD 1.24 billion, net profit margin of 13.44%, and adjusted EPS of USD 1.20, with year-over-year growth rates of 35.59% for revenue and 30.44% for adjusted EPS. A key highlight was broad-based upside versus prior estimates, evidenced by EBIT of USD 2.24 billion surpassing earlier forecasts and adjusted EPS of USD 1.20 exceeding consensus. Main business momentum was led by Data Center revenue of USD 4.34 billion, while Customer and Gaming delivered USD 4.05 billion combined and Embedded contributed USD 0.86 billion, reinforcing favorable mix dynamics and the pathway to sustained margin expansion.

Current Quarter Outlook

Data Center Compute and AI Accelerators

Data Center is positioned to drive fiscal Q4 performance, supported by expanding shipments of server CPUs and ramping AI accelerators. The last quarter’s USD 4.34 billion revenue base sets a strong sequential platform, with order visibility indicating continued uptake among hyperscale customers and enterprise workloads. Pricing discipline and richer configurations should sustain favorable average selling prices, while supply alignment with leading foundry partners helps balance lead times and delivery schedules. Gross margin resilience is tied to the higher-margin profile of accelerator and EPYC CPU products. Operating leverage benefits from top-line scale, yielding EBIT progression consistent with the USD 2.43 billion estimate. The trajectory in utilization, coupled with software stack enhancements for AI deployment, can incrementally lift total solution value, supporting adjusted EPS of USD 1.31. Cross-quarter comparisons suggest year-over-year expansion supported by ongoing share wins in AI training and inference clusters.

Client Computing and Gaming

Client computing and gaming segments are expected to be steady contributors, with seasonal mix effects in PCs and consoles. The combined USD 4.05 billion revenue last quarter provides a benchmark for performance normalization; channel inventory has improved, and new product cycles in premium and mainstream tiers offer stable unit trends. Gaming demand should reflect typical holiday-to-new-year moderation, offset by content refresh and performance efficiency improvements that maintain ecosystem engagement. Margin implications from these segments are balanced. Client ASPs benefit from higher attach rates of integrated graphics and the adoption of advanced nodes, while gaming unit profitability remains consistent. The segments are not the primary growth engines this quarter, yet they support consolidated revenue breadth and help dilute volatility from data center procurement cycles, contributing to predictability in adjusted EPS delivery.

Embedded

Embedded, at USD 0.86 billion last quarter, continues to normalize from prior peaks as industrial, automotive, and communications customers adjust to post-pandemic demand patterns. Bookings have stabilized, and backlog conversion is proceeding at a measured pace. While near-term growth is constrained, product portfolio breadth and lifecycle longevity sustain a healthy mix, with select design wins helping maintain baseline revenue. From a margin perspective, embedded contributes positively, although less than data center due to the demand slope and competitive pricing in certain verticals. This segment’s operational discipline supports overall gross margin consistency, even as the growth vector skews toward compute and accelerators. Embedded’s steady-state cash flow characteristics continue to underpin investment capacity for higher-return projects in compute.

Stock Price Drivers This Quarter

The stock price will be most sensitive to the pace of AI accelerator shipments and guidance for the next quarter’s data center trajectory. Investors will focus on the relationship between revenue growth and gross margin stability, particularly whether product and customer mix can hold gross margins near recent levels while expanding adjusted EPS. Commentary on supply-chain readiness and software ecosystem progress will be closely parsed to gauge sustainability of AI-related demand and potential upside risk to consensus. Additionally, clarity on client and gaming visibility, including inventory and demand normalization, can reduce uncertainty in consolidated forecasts. Embedded stabilization offers a secondary check on execution discipline and working capital management. Management’s tone on the pipeline for accelerator deployments and EPYC CPU refresh cycles could set expectations for full-year revenue, thus influencing valuation multiples.

Analyst Opinions

Institutional and sell-side perspectives in the past six months have been predominantly bullish, emphasizing data center momentum, AI accelerator ramp, and a supportive margin profile. Notable analyst commentary underlines confidence ahead of peers’ reports, with favorable coverage citing upside drivers in mix shift and execution against roadmap milestones. The prevailing view anticipates solid year-over-year revenue and EPS growth consistent with the company’s estimates and consensus ranges, with the balance of opinions skewed toward positive expectations for fiscal Q4 performance. Analysts highlight potential catalysts tied to hyperscale adoption of new accelerator platforms and ongoing share gains in server CPUs. The bullish case underscores how gross margin can remain resilient in the face of broader compute market transitions, with EBIT leverage intact as operating expenses scale appropriately. Institutions expect guidance that frames continued strength into the next quarter and provide constructive commentary on AI software readiness, contributing to a majority-bullish outlook on near-term earnings dynamics and stock reaction potential.