AMD · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

ADVANCED MICRO DEVICES INC · 2026-08-05 · Importance 51 · Surprise 64

AMD recorded a $252 million income tax provision for the second quarter of fiscal 2026, producing a 9.8% effective tax rate, compared with a $834 million benefit and a 1,263.6% rate in the prior-year quarter. For the first six months, the tax provision was $490 million at an 11.8% effective rate, compared with a $711 million benefit and a negative 92.8% rate in the prior year. The 2026 effective rate was below the 21% U.S. federal statutory rate because of foreign-derived deduction eligible income and R&D tax credits. The 2025 benefit included a $792 million quarterly and $781 million six-month discrete benefit, primarily from an $853 million benefit related to IRS-approved relief for dual consolidated losses.

Key facts

• For the three and six months ended June 27, 2026, AMD recorded an income tax provision from continuing operations of $252 million and $490 million representing an effective tax rate of 9.8% and 11.8%, respectively. source
• The difference between the U.S. federal statutory tax rate of 21% and AMD's estimated annual effective tax rate was primarily due to the income tax benefit from foreign-derived deduction eligible income (FDDEI) and R&D tax credits. source