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Sep 24, 2022

AMD Q3 2022 Earnings Report

AMD's third quarter results were below expectations due to the softening PC market and inventory reduction actions, but Data Center, Gaming, and Embedded segments grew significantly year-over-year.

Key Takeaways

AMD reported Q3 2022 revenue of $5.6 billion, a 29% increase year-over-year. The company experienced a GAAP operating loss of $64 million, but a non-GAAP operating income of $1.3 billion. Growth was driven by the Data Center, Gaming, and Embedded segments, while the Client segment faced challenges.

Revenue increased 29% year-over-year, driven by growth in Data Center, Gaming, and Embedded segments.

GAAP gross margin was 42%, while non-GAAP gross margin was 50%, an increase of 2 percentage points year-over-year.

GAAP operating loss was $64 million, while non-GAAP operating income was $1.3 billion.

Diluted earnings per share was $0.04, and non-GAAP diluted earnings per share was $0.67.

Total Revenue
$5.57B
Previous year: $4.31B
+29.0%
EPS
$0.67
Previous year: $0.73
-8.2%
Gross Margin
42%
Gross Profit
$2.35B
Previous year: $2.09B
+12.8%
Cash and Equivalents
$3.4B
Previous year: $2.44B
+39.3%
Free Cash Flow
$842M
Previous year: $764M
+10.2%
Total Assets
$67.8B
Previous year: $11.2B
+508.0%

AMD

AMD

Forward Guidance

For the fourth quarter of 2022, AMD expects revenue to be approximately $5.5 billion, plus or minus $300 million, an increase of approximately 14% year-over-year and flat sequentially. AMD expects non-GAAP gross margin to be approximately 51% in the fourth quarter of 2022.

Positive Outlook

  • Embedded and Data Center segments are expected to grow year-over-year.
  • Embedded and Data Center segments are expected to grow sequentially.
  • AMD expects revenue to be approximately $5.5 billion, plus or minus $300 million.
  • AMD expects non-GAAP gross margin to be approximately 51%.