AMD · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
ADVANCED MICRO DEVICES INC · 2026-08-05 · Importance 58 · Surprise 56 · No source text
Consolidated gross margin increased to 54% from 40% year over year in the second quarter and to 53% from 45% for the first six months. The improvement was driven by the absence of prior-year inventory and related charges associated with U.S. export controls on AMD Instinct MI308 Data Center GPUs. A favorable product mix, including the higher proportion of Data Center revenue, also increased gross margin. Quarterly operating income improved to $2.0 billion from a $134 million loss, while six-month operating income reached $3.5 billion from $672 million.
Key facts
- Gross profit for the three months ended June 27, 2026 was $6,203 million compared to $3,059 million for the prior year period. source
- Gross margin for the three months ended June 27, 2026 was 54% compared to 40% for the prior year period, a 14% increase. source
- Cost of sales for the three months ended June 27, 2026 was $5,073 million compared to $4,366 million for the prior year period. source
- Gross margin for the six months ended June 27, 2026 was 53% compared to 45% for the prior year period. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +14.0% | Gross margin for the three months ended June 27, 2026 was 54% compared to 40% for the prior year period, a 14% increase. |
| margin | positive | realized | +8.0% | Gross margin for the six months ended June 27, 2026 was 53% compared to 45% for the prior year period. |
| operating_income | negative | realized | -6.1% | Cost of sales for the three months ended June 27, 2026 was $5,073 million compared to $4,366 million for the prior year period. |