AMD raises FY26 guidance to $11.2B

Advanced Micro Devices said on May 5 that first-quarter revenue rose 38% from a year earlier to $10.253 billion, as demand for its server processors and AI chips lifted its data-center business. The Santa Clara, California, company said second-quarter revenue is expected to be about $11.2 billion, plus or minus $300 million. (amd.com) AMD reported first-quarter net income of $1.383 billion, up 95% from a year earlier, while diluted earnings per share were 84 cents. Shares rose about 12% in extended trading after the results, according to Reuters, though current company price-history data show AMD closed at $414.05 on May 19. ### Why is the $11.2 billion figure getting so much attention? (ir.amd.com) AMD said the $11.2 billion figure is its forecast for second-quarter 2026 revenue, not full-year revenue. The company said the midpoint of that range implies about 46% year-over-year growth and a 9% sequential increase. The company’s release tied that outlook to continued demand for data-center products. AMD Chief Executive Lisa Su said first-quarter results were driven by “continued rapid growth in AI infrastructure” and that the data-center segment had become “the primary engine driving our revenue and profit growth.” (amd.com) ### What in the quarter actually drove the beat? AMD said data-center revenue reached $5.8 billion in the quarter, up 57% from a year earlier. The company said that increase was driven by strong demand for EPYC server processors and the continued ramp of Instinct GPU shipments. (amd.com) First-quarter non-GAAP operating income was $2.54 billion, up 43% from a year earlier, while non-GAAP diluted earnings per share rose to $1.37 from 96 cents. Chief Financial Officer Jean Hu said the quarter delivered “accelerating revenue growth, margin expansion and record quarterly free cash flow.” (amd.com) ### How did AMD’s other businesses perform? AMD said client and gaming segment revenue rose 23% to $3.6 billion. Within that unit, client revenue increased 26% to $2.9 billion on demand for Ryzen processors and market-share gains, while gaming revenue rose 11% to $720 million on Radeon GPU demand, partly offset by lower semi-custom revenue. (amd.com) Embedded segment revenue was $873 million, up 6% from a year earlier, AMD said. The company attributed that increase to growth across multiple end markets. ### What else did AMD highlight around AI customers? AMD said recent business developments included an expanded partnership with Meta, which plans to deploy as much as 6 gigawatts of AMD data-center GPUs. (amd.com) The company also said Meta would be a lead customer for upcoming sixth-generation EPYC processors code-named Venice and Verano. The company said Amazon Web Services, Google Cloud, Microsoft Azure and Tencent Cloud announced new or expanded cloud instances powered by fifth-generation EPYC processors. (amd.com) AMD also said its data-center GPUs posted competitive results in the latest MLPerf benchmarks. ### Did the stock really jump to $466 after the report? (amd.com) Reuters reported on May 5 that AMD shares jumped about 12% in extended trading after the earnings release. AMD’s own investor-relations price page shows the stock at $414.05 at the May 19 close and $417.50 in after-hours trading that evening, which does not match the $466 figure in the prompt. (ir.amd.com) Yahoo Finance historical data for May 19 also show AMD closing at $414.05, with after-hours trading around $422.29. On the available sourcing, the reported $466 after-hours price could not be verified. ### Where can investors check what management said next? (amd.com) AMD’s investor-relations calendar lists the first-quarter 2026 earnings webcast, transcript, slide presentation and financial tables for the May 5 report. The company’s financial-results page also archives the quarter ended March 28, 2026, alongside the related 10-Q filing. (ir.amd.com) (finance.yahoo.com) (marketscreener.com)