Advanced Micro Devices (AMD) reported its fourth-quarter results, exceeding analyst expectations for both revenue and adjusted earnings per share. The company also provided a first-quarter outlook.
Fourth-Quarter Performance
AMD reported fourth-quarter revenues of $10.27 billion. This figure surpassed analyst estimates of $9.65 billion and the company's own guidance, which ranged from $9.3 billion to $9.9 billion. Adjusted earnings per share reached $1.53, exceeding the estimate of $1.32.
Sales of MI308 chips to China contributed $390 million to the fourth-quarter revenue.
First-Quarter Outlook
For the current quarter, AMD's management anticipates revenues of $9.8 billion, with a potential variation of $300 million. This guidance includes an expected $100 million in sales of MI308 chips to China.
The estimated adjusted gross margin for the quarter is 55%.
Market Reaction and Company Statements
Following the announcement, AMD shares experienced a decline of nearly 7% in after-hours trading.
Dr. Lisa Su, Chair and CEO, stated in the earnings release that the company is "entering 2026 with strong momentum across our business."
Earlier in the earnings season, Intel, a competitor in CPUs, indicated that supply constraints were affecting its outlook. During an analyst day in Q4, Dr. Su had previously projected compounded annual revenue growth of over 35% for AMD over the next three to five years, with data center business growth expected to exceed 60%.