AMD · News · 20260806N

Gross Margin Drivers

ADVANCED MICRO DEVICES INC · 2026-08-06 · Importance 31 · Surprise 32

AMD reported second-quarter GAAP gross margin of 54% and non-GAAP gross margin of 56%. Non-GAAP gross margin increased by more than 200 basis points year over year, while operating margin reached 27% on an adjusted basis. Analysts attributed the flat roughly 56% third-quarter margin outlook to near-term costs associated with the Helios AI infrastructure ramp. The margin outlook was viewed as constrained despite 107% year-over-year Data Center growth.

Key facts

• Free cash flow converted at 14% of revenue in Q2 for AMD. source