AMD · Earnings call · 2026Q3T · Full report

Other Income (Expense), Net

ADVANCED MICRO DEVICES INC · 2026-11-03 · Importance 38 · Surprise 24 · In source text

Third-quarter GAAP diluted EPS was $1.46 and included a $1.1 billion noncash charge in other income and expense. The charge primarily reflected an increase in AMD’s share price and changes in the estimated probability of meeting customer warrant conditions. AMD said future quarterly fair-value adjustments will vary with its share price and other valuation assumptions, and will not affect non-GAAP results or free cash flow.

Key facts

• AMD GAAP diluted EPS was $1.46, including a $1.1 billion noncash charge in other income and expense, primarily reflecting its share-price increase and changes in estimated probability of meeting warrant conditions.
• AMD did not expect Q4 2026 share count to be affected by customer warrants.
• AMD expected quarterly noncash warrant fair-value adjustments to increase as it and its customers progressed under the agreement, with amounts varying based on AMD stock price and other valuation assumptions.
• AMD began recognizing the accounting impact of warrants under a previously announced customer agreement when it shipped MI450 Series GPUs in Q3 2026.
• AMD’s quarterly noncash warrant adjustments were not expected to affect non-GAAP results or free cash flow.

Impact estimates