Advanced Micro Devices posted Q1 adjusted EPS of $1.37 vs est. $1.28 on revenue of $10.25bn, beating the $9.89bn consensus, and guided Q2 revenue to $10.9bn-$11.5bn.
Summary:
- AMD reported Q1 adjusted EPS of $1.37, ahead of the $1.28 estimate, according to the company’s earnings release
- First-quarter revenue came in at $10.25bn, topping the consensus estimate of $9.89bn, per the results
- Q2 revenue guidance was set at $10.90bn to $11.50bn, above the $10.52bn analyst estimate, according to AMD
- Adjusted operating income reached $2.54bn against an estimate of $2.41bn, with adjusted operating margin at 25% versus the 24.3% forecast, per the earnings report
- R&D expenses of $2.40bn exceeded the $2.26bn estimate, while capital expenditure of $389m ran well above the $215.2m consensus, according to the company
- Q2 adjusted gross margin was guided at approximately 56%, ahead of the 55.3% estimate, per AMD’s outlook statement
Advanced Micro Devices delivered a stronger-than-expected first quarter, beating analyst estimates across its key financial metrics and issuing second-quarter guidance that came in well above Wall Street forecasts, underscoring continued momentum in semiconductor demand.
The chipmaker posted adjusted earnings per share of $1.37 for the March quarter, ahead of the $1.28 consensus estimate. Revenue reached $10.25bn, surpassing the $9.89bn forecast and marking a notable outperformance on the top line. Adjusted operating income came in at $2.54bn against an estimate of $2.41bn, while the adjusted operating margin of 25% edged past the 24.3% expectation.
Looking ahead, AMD guided second-quarter revenue in the range of $10.90bn to $11.50bn, comfortably above the $10.52bn analyst consensus. The company also forecast an adjusted gross margin of approximately 56% for the period, marginally ahead of the 55.3% estimate, signalling that pricing and product mix remain favourable.
Research and development spending reached $2.40bn in the quarter, above the $2.26bn forecast, reflecting the company’s continued investment in next-generation chip architectures. Capital expenditure of $389m was the most striking variance from expectations, running nearly double the $215.2m consensus estimate. While elevated capex can weigh on free cash flow in the near term, the scale of investment is consistent with a company positioning itself for sustained growth in data centre, artificial intelligence and high-performance computing markets.
The breadth of the beat, spanning earnings, revenue, operating income and margins, leaves AMD well placed relative to peers as the semiconductor sector continues to navigate shifting demand dynamics. With second-quarter guidance now set above prior expectations on both revenue and gross margin, the results reinforce the view that AMD is capturing a growing share of the compute infrastructure buildout driven by AI workloads. How the company manages the balance between heavy investment and margin delivery will be a key focus for investors in the quarters ahead.
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AMD’s results signal continued robust demand for its chips, with the revenue beat and upward Q2 guidance likely to reinforce positive sentiment around semiconductor stocks more broadly. The company’s willingness to significantly outspend on capital expenditure, nearly double the consensus estimate, points to confidence in sustained demand but may draw scrutiny from investors watching cost discipline. The stronger-than-expected operating margin performance suggests AMD is managing its cost base effectively even as R&D spending runs ahead of forecasts, a dynamic that could influence how peers are valued heading into their own reporting periods.
