Computer processor maker AMD (NASDAQ: AMD) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 50.1% year on year to $11.54 billion. Guidance for next quarter’s revenue was optimistic at $13 billion at the midpoint, 2.9% above analysts’ estimates. Its non-GAAP profit of $1.66 per share was 3.1% above analysts’ consensus estimates.
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AMD (AMD) Q2 CY2026 Highlights:
- Revenue: $11.54 billion vs analyst estimates of $11.35 billion (50.1% year-on-year growth, 1.7% beat)
- Adjusted EPS: $1.66 vs analyst estimates of $1.61 (3.1% beat)
- Adjusted EBITDA: $3.32 billion vs analyst estimates of $2.88 billion (28.7% margin, 15.3% beat)
- Revenue Guidance for Q3 CY2026 is $13 billion at the midpoint, above analyst estimates of $12.63 billion
- Operating Margin: 17.3%, up from -1.7% in the same quarter last year
- Free Cash Flow Margin: 13.5%, down from 15.4% in the same quarter last year
- Inventory Days Outstanding: 152, down from 160 in the previous quarter
- Market Capitalization: $790.3 billion
“We delivered an excellent quarter, with record revenue and profitability as Data Center revenue more than doubled year-over-year,” said Dr. Lisa Su, AMD chair and CEO.
Company Overview
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, AMD grew its sales at an incredible 25.4% compounded annual growth rate. Its growth beat the average semiconductor company and shows its offerings resonate with customers, a helpful starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore’s Law) could make yesterday’s hit product obsolete today. AMD’s annualized revenue growth of 33.2% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, AMD reported magnificent year-on-year revenue growth of 50.1%, and its $11.54 billion of revenue beat Wall Street’s estimates by 1.7%. Beyond the beat, this marks 12 straight quarters of growth, showing that the current upcycle has had a good run - a typical upcycle usually lasts 8-10 quarters. Company management is currently guiding for a 40.6% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 53.6% over the next 12 months, an improvement versus the last two years. This projection is eye-popping for a company of its scale and indicates its newer products and services will catalyze better top-line performance.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’s capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, AMD’s DIO came in at 152, which is 11 days above its five-year average. These numbers suggest that despite the recent decrease, the company’s inventory levels are higher than what we’ve seen in the past.
Key Takeaways from AMD’s Q2 Results
A highlight during the quarter was AMD’s improvement in inventory levels. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 5.3% to $492.81 immediately following the results.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
