Advanced Micro Devices, Inc. (AMD) Earnings Review
Advanced Micro Devices, Inc. earnings review — the reported quarter's EPS and revenue against the Street's estimates, the forward outlook, margins, cash flow, and valuation reset as of July 2, 2026.
By TGMCharts Research · Data as of · Updated
Advanced Micro Devices, Inc. posted EPS of $1.37 versus the $1.29 consensus (a 5.82% surprise) on revenue of $10.25B; whether it changed the thesis depends on the forward setup, not the headline.
The review ties the print to the durable trend: the TTM revenue change is 34.97%, operating margin is 11.65%, and the market pays 169.22x trailing earnings; next-quarter consensus is $1.60 EPS.
- Advanced Micro Devices, Inc. posted EPS of $1.37 versus the $1.29 consensus — a surprise of 5.82%.
- Revenue was $10.25B against a $9.90B estimate — a revenue surprise of 3.57%.
- Trailing-twelve-month revenue change is 34.97% and EPS change is 125.07%.
- Operating margin is 11.65% and net margin is 13.37%.
- Next quarter consensus is $1.60 EPS on $11.25B revenue, with the next report due August 4, 2026.
Quarterly Setup
The reported quarter against the Street's estimates, plus the latest TTM trend behind it.
Evaluating the Semiconductor Leader's Latest Financial Performance
The latest financial disclosure from Advanced Micro Devices, Inc. offers a detailed look at how the enterprise is executing relative to Wall Street's expectations. The firm reported actual EPS of $1.37 against the consensus estimate of $1.29, which represents a positive earnings surprise of 5.82%. Total revenue for the period reached $10.25B, exceeding the projected $9.90B to deliver a revenue-side surprise of 3.57%.
Evaluating a single quarter in isolation can obscure the broader operational trajectory. Over the trailing twelve months, the company's revenue expanded by 34.97% while its EPS climbed by 125.07%. This fundamental analysis examines whether this latest report strengthens these long-term trends or signals an impending shift in operational momentum.
Current compounder snapshot · AMD
Live supporting context; not part of the article's frozen 2026-07-02 evidence snapshot.
- Score
- 65/100
- 10Y CAGR
- 24.1%
- Median YoY
- 30.4%
- YoY volatility
- σ 27.7pp· choppy
- Quarters ≥ 20%
- 25 of 40
- Negative quarters
- 5
- Valuation vs own 10Y history
- P/S 19.0x · 10Y median 7.9x · 98th percentile · as of Aug 11, 2026
How this score is computed
- Quarters at or above 20%: 25 of 40 → 25 of 40 pts
- Steadiness (typical swing 27.7pp) → 5.2 of 25 pts
- Pace (median 30.4% YoY) → 20 of 20 pts
- Latest quarter (50.1% YoY) → 15 of 15 pts
- Score: 65 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Actual Performance Relative to Wall Street Projections
An examination of the quarterly scorecard reveals outperformance on both the top and bottom lines. The reported revenue of $10.25B came in ahead of the $9.90B consensus, while the bottom-line delivery of $1.37 outpaced the $1.29 expected by analysts. These results indicate that the business maintained operational momentum through the close of the reporting period.
Analyzing the relationship between these two surprises is critical. When top-line expansion outpaces bottom-line gains, it often points to rising operational costs or shifting product mix. In this instance, both metrics moved upward, indicating that the positive variance was supported by actual demand rather than isolated accounting adjustments or changes in tax provisions.
Earnings scorecard: reported vs expected
The quarter's actual EPS and revenue against the Street's consensus, with the forward-quarter setup.
AMD TTM revenue Chart
TTM revenue keeps the quarterly review focused on the most recent four-quarter business base.
Latest revenue TTM growth: 34.97%.
Revenue TTM growth of 34.97% is the first quarterly-review checkpoint. It shows whether the latest reported periods are still adding to the business base.
Assessing the Multi-Quarter Revenue and Earnings Trajectory
Over the trailing twelve months, the company's revenue growth of 34.97% is mirrored by a substantial increase in net income of 124.92%. This parallel upward movement suggests that top-line gains are translating effectively into net earnings. Furthermore, the trailing EPS growth of 125.07% reinforces this positive direction, demonstrating that per-share value is rising alongside absolute net profit.
AMD TTM net income Chart
Net income TTM history checks whether revenue momentum is reaching the bottom line.
Latest net income TTM growth: 124.92%.
Net income TTM growth of 124.92% is the earnings-conversion check. If it diverges from revenue growth, the review should focus on margins rather than only sales.
AMD EPS Chart
EPS connects reported earnings momentum to the per-share outcome.
Latest EPS TTM growth: 125.07%.
EPS TTM growth of 125.07% shows what the recent reporting cycle delivered per share. It is most useful beside revenue and margin data, not as a standalone verdict.
Verifying Earnings Quality Through Free Cash Flow Generation
Comparing cash generation against reported net income serves as an essential check on earnings quality. Over the trailing twelve months, free cash flow grew by 211.44%. This positive cash flow trajectory aligns with the upward movement in net income, suggesting that the reported accounting profits are backed by actual cash inflows rather than inventory accumulation or deferred receivables.
AMD TTM free cash flow Chart
Free cash flow TTM is the cash-conversion counterpoint to earnings momentum.
Latest FCF TTM growth: 211.44%.
Free-cash-flow TTM growth of 211.44% can confirm or challenge the earnings story. A quarterly review is incomplete if cash conversion is moving differently from EPS.
Analyzing Profitability Trends and Operational Efficiency
The company's margin profile provides context on how efficiently it converts sales into profit. The gross margin stands at 50.28%, while the operating margin is 11.65% and the net margin is 13.37%. These figures indicate the proportion of revenue retained after production and operating expenses, serving as a baseline for evaluating future profitability trends.
AMD operating margin
Operating margin shows whether the latest revenue base is becoming more or less profitable.
Operating margin (TTM): 11.65%. The bars below are individual quarters, so the latest bar can differ from this trailing-twelve-month figure.
Operating margin (TTM) of 11.65% is the quality read across the last four quarters. The review should become more cautious if growth is present but margin quality is fading.
Evaluating Forward Expectations and the Coming Quarterly Milestone
Looking ahead, the consensus estimate for the upcoming quarter is set at $1.60 in EPS on revenue of $11.25B. The next financial results are scheduled for release on August 4, 2026. This forward-looking bar represents the hurdle the company must clear to sustain its current market valuation.
Comparing the upcoming revenue projection of $11.25B against the trailing twelve-month revenue growth of 34.97% helps determine whether consensus expectations are accelerating or moderating. A rising forward bar requires continued operational execution to prevent valuation pressure.
Current Market Valuation Relative to Underlying Fundamentals
Following the latest earnings release, the market has priced the equity at a trailing price-to-earnings ratio of 169.22x, accompanied by a free cash flow yield of 1.00%. This valuation multiple indicates that investors are paying a premium for the company's current earnings stream, reflecting expectations of continued expansion.
AMD P/E ratio Chart
P/E history keeps the quarterly review connected to what investors are paying for the updated fundamentals.
Latest P/E ratio: 169.22x.
The P/E ratio at 169.22x is the market's price on the quarterly evidence. Improving fundamentals matter more when the multiple does not already assume too much progress.
Key Operational Strengths and Potential Vulnerabilities
The primary positive takeaway from the quarter is the synchronized upward movement in trailing revenue, net income, and free cash flow, indicating broad-based operational health. However, the valuation multiple of 169.22x leaves little room for execution errors. Any future deceleration in cash generation or a compression of the operating margin below 11.65% could lead to a reassessment of the stock's valuation.
Bull and bear case
Quarterly support
- Revenue TTM growth of 34.97% supports the latest operating momentum.
- Net margin of 13.37% keeps the quarterly review connected to earnings quality.
Quarterly pressure
- Free-cash-flow TTM growth of 211.44% can weaken the read if cash conversion lags earnings.
- The valuation still has to be checked against a P/E ratio of 169.22x.
Synthesizing the Fundamental Trajectory of the Semiconductor Maker
In summary, the latest financial results show positive growth across key trailing metrics, with revenue, net income, and cash flow all moving in an upward direction. The market's valuation of 169.22x trailing earnings reflects these strong trends, but also raises the stakes for the upcoming report on August 4, 2026. This analysis is based on validated fundamentals as of July 2, 2026 and does not constitute personalized investment advice.
FAQ
Did AMD beat or miss earnings estimates last quarter?
Advanced Micro Devices, Inc. posted EPS of $1.37 against the $1.29 consensus — an EPS surprise of 5.82% — on revenue of $10.25B versus the $9.90B estimate, a revenue surprise of 3.57%.
What is the forward outlook for AMD after the print?
Consensus models $1.60 in EPS on $11.25B in revenue for the coming quarter, with the next report due August 4, 2026. The TTM revenue change of 34.97% is the reference for judging whether that bar is conservative or demanding.
What would make this AMD earnings review stale?
If the next data update materially changes the reported-quarter figures, forward estimates, margins, or valuation inputs, this note is corrected or withdrawn rather than left stale. Figures are as of July 2, 2026.
What would change our mind
- The next report due August 4, 2026 versus the $1.60 EPS consensus.
- Free-cash-flow TTM change versus the EPS TTM change of 125.07%.
- Operating margin or valuation moving away from 11.65% and 169.22x.
The bottom line
Advanced Micro Devices, Inc. earnings-report review from TGMCharts Research: the reported quarter versus consensus, the forward setup, and what it means for the business — grounded in precomputed data and a frozen claim ledger.
Read next: Advanced Micro Devices, Inc. (AMD) Earnings ReviewEarnings review on Advanced Micro Devices, Inc. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-06 · period 2026-03-28 · SEC EDGAR source
- “Net revenue for the three months ended March 28, 2026 was $10.3 billion, a 38% increase compared to the prior year period.”
- “Operating income for the three months ended March 28, 2026 was $1.5 billion compared to operating income of $806 million for the prior year period.”
- “Net income for the three months ended March 28, 2026 was $1.4 billion compared to net income of $709 million for the prior year period.”
- “Data Center operating income was $1.6 billion for the three months ended March 28, 2026, compared to operating income of $932 million for the prior year period.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.