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AI Earnings Analysis
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $34.64B | $25.79B | +34.34% |
Cost of Revenue | $17.49B | $13.06B | +33.90% |
Gross Profit | $17.15B | $12.72B | +34.79% |
Operating Income | $3.69B | $1.9B | +94.42% |
Net Income | $4.33B | $1.64B | +164.17% |
EPS (Basic) | $2.67 | $1.01 | +164.36% |
EPS (Diluted) | $2.65 | $1.00 | +165.00% |
R&D Expense | $8.09B | $6.46B | +25.33% |
SG&A Expense | $4.14B | $2.73B | +51.52% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $76.93B | $69.23B | +11.12% |
Current Assets | $26.95B | $19.05B | +41.46% |
Current Liabilities | $9.46B | $7.28B | +29.86% |
Stockholders' Equity | $63B | $57.57B | +9.43% |
Cash & Equivalents | $5.54B | $3.79B | +46.26% |
Long-Term Debt | $2.35B | $1.72B | +36.43% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $7.71B | $3.04B | +153.50% |
Investing Cash Flow | $-5.53B | $-1.1B | -402.54% |
Financing Cash Flow | $-431M | $-2.06B | +79.10% |
Share Buybacks | $1.32B | $862M | +52.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 49.5% | 49.4% | +0.17% |
Operating Margin | 10.7% | 7.4% | +3.30% |
Net Margin | 12.5% | — | — |
ROE | 6.9% | — | — |
ROA | 5.6% | — | — |
Current Ratio | $2.85 | — | — |
AMD delivered a breakout fiscal year 2025, with revenue surging 34.3% to $34.6B and net income more than doubling to $4.3B, driven by explosive growth in its data center and AI accelerator business.
AMD's total revenue grew 34.3% year-over-year to $34.6B in FY2025, up from $25.8B in FY2024, reflecting strong demand across its product portfolio, particularly in data center AI compute solutions.
Source: Source: 10-K Income Statement
Operating income nearly doubled, rising 94.4% to $3.7B, with operating margin expanding 330 basis points to 10.7%, demonstrating meaningful operating leverage as revenue scaled faster than operating expenses.
Source: Source: 10-K Income Statement
AMD continued to invest heavily in innovation, with R&D expenses rising 25.3% to $8.1B in FY2025, representing approximately 23.4% of revenue — a signal of the company's commitment to next-generation chip development.
Source: Source: 10-K Income Statement
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Upgrade to unlockAMD competes directly with NVIDIA and Intel in the high-growth AI accelerator and data center GPU market. NVIDIA's dominant market share and established software ecosystem (CUDA) pose a significant barrier for AMD's MI-series GPU adoption. Failure to gain meaningful share could limit AMD's long-term revenue growth trajectory.
Source: Source: 10-K Risk Factors
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Upgrade to unlockAMD's revenue grew 34.3% year-over-year to $34.6B in FY2025, up from $25.8B in FY2024. This growth was primarily driven by strong demand for AMD's AI accelerators and data center products as cloud hyperscalers ramped up AI infrastructure investments.
The key takeaways from AMD's FY2025 10-K are: revenue surged 34% to $34.6B, net income more than doubled to $4.3B, and operating cash flow tripled to $7.7B. Operating margin expanded to 10.7% from 7.4%, reflecting strong operating leverage, while AMD continued to invest heavily in R&D at $8.1B to fuel future AI chip development.
Yes, AMD's profitability improved dramatically in FY2025. Net income rose 164% to $4.3B and diluted EPS jumped 165% to $2.65, compared to $1.00 in FY2024. Operating margin also expanded by approximately 330 basis points to 10.7%.
AMD's financial health appears strong: it holds $5.5B in cash, has a current ratio of 2.85, and carries only $2.3B in long-term debt against $63.0B in stockholders' equity. Operating cash flow of $7.7B in FY2025 provides ample liquidity to fund R&D, share buybacks ($1.3B in FY2025), and strategic investments.
Key risks for AMD include intense competition from NVIDIA in the AI accelerator market, heavy R&D spending of $8.1B that must translate into winning products, and reliance on TSMC and other third-party foundries for chip manufacturing. Additionally, SG&A costs grew 51.5% — faster than revenue — which could pressure margins if top-line growth slows.
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