AMD Reports Record Q4 Revenue, Shares Drop on Guidance

Advanced Micro Devices Inc. reported record revenue for the fourth quarter and full year of 2025, surpassing analyst expectations, though shares fell as much as 8 percent in after-hours trading due to a first-quarter forecast that disappointed some investors seeking stronger signs of artificial intelligence growth.

The company announced quarterly revenue of $10.27 billion on Tuesday, a 34 percent increase from the same period in 2024 and above the $9.67 billion consensus estimate. Adjusted earnings per share came in at $1.53, beating the $1.32 projection, while GAAP net income reached $1.51 billion, or 92 cents per share, up from $482 million a year earlier. For the full year, revenue hit a record $34.6 billion, with a gross margin of 50 percent, operating income of $3.7 billion and net income of $4.3 billion. Diluted earnings per share for the year stood at $2.65.

The results were propelled by robust demand across AMD's key segments, particularly in data centers fueled by AI workloads. Data center revenue climbed 39 percent year over year to $5.4 billion in the quarter, contributing to a full-year total of $16.6 billion, a 32 percent rise. Growth stemmed from sales of Epyc...