AMD · 10-Q · 2026Q3 · Full report
Operating Expense Trends
ADVANCED MICRO DEVICES INC · 2026-11-04 · Importance 64 · Surprise 56 · In source text
Research and development expense increased 31% to $2.803 billion in the third quarter and 34% to $7.728 billion for nine months, primarily from higher employee-related costs as headcount expanded for Data Center silicon, systems, and software capabilities. Marketing, general and administrative expense rose 21% to $1.298 billion in the quarter and 34% to $3.952 billion for nine months, driven mainly by increased go-to-market activity. Acquisition-related intangible amortization declined 5% to $534 million in the quarter and 4% to $1.6 billion for nine months as certain acquired intangibles had become fully amortized.
Key facts
- R&D expense was $2.8 billion for the three months ended September 26, 2026, up $0.7 billion or 31% from $2.1 billion, primarily due to higher employee-related costs from increased headcount as AMD expanded data center silicon, systems and software capabilities. source
- R&D expense was $7.7 billion for the nine months ended September 26, 2026, up $2.0 billion or 34% from $5.8 billion; the increase primarily reflected higher employee-related costs from increased headcount as AMD expanded data center silicon, systems and software capabilities. source
- Marketing, general and administrative expense was $4.0 billion for the nine months ended September 26, 2026, up $1.0 billion or 34% from $2.9 billion, primarily due to increased go-to-market activities supporting revenue growth. source
- Marketing, general and administrative expense was $1.3 billion for the three months ended September 26, 2026, up $0.2 billion or 21% from $1.1 billion, primarily due to increased go-to-market activities supporting revenue growth. source
- Amortization of acquisition-related intangibles was $1.6 billion for the nine months ended September 26, 2026, down $68 million or 4% from $1.7 billion, primarily because certain acquisition-related intangibles were fully amortized in the prior fiscal year. source
- Operating income for the three months ended September 26, 2026 was $2.8 billion, compared with $1.3 billion in the prior-year period; the increase reflected higher gross profit, partially offset by higher operating expenses. source
- Amortization of acquisition-related intangibles was $534 million for the three months ended September 26, 2026, down $28 million or 5% from $562 million, primarily because certain acquisition-related intangibles were fully amortized in the prior fiscal year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -14.9% | R&D expense was $7.7 billion for the nine months ended September 26, 2026, up $2.0 billion or 34% from $5.8 billion; the increase… |
| operating_income | positive | realized | +11.2% | Operating income for the three months ended September 26, 2026 was $2.8 billion, compared with $1.3 billion in the prior-year period; the… |
| operating_income | negative | realized | -7.5% | Marketing, general and administrative expense was $4.0 billion for the nine months ended September 26, 2026, up $1.0 billion or 34% from… |
| operating_income | positive | realized | +0.5% | Amortization of acquisition-related intangibles was $1.6 billion for the nine months ended September 26, 2026, down $68 million or 4% from… |
| operating_income | positive | realized | +0.2% | Amortization of acquisition-related intangibles was $534 million for the three months ended September 26, 2026, down $28 million or 5%… |