Aug 6 - AMD's Q2 earnings (released Aug 5 local time) made waves: revenue hit $7.69 billion, up 32% YoY and beating the $7.43 billion estimate. However, adjusted gross margin was 43% (vs 53% YoY, below the 43.1% forecast). Adjusted net profit dropped 31% YoY to $781 million, with adjusted EPS at $0.48 (vs $0.69 YoY, just below the $0.49 estimate).
Excluding GPUs, AMD's CPU business (under Data Center segment) generated $3.2 billion, up 14% YoY. The "Client & Gaming" segment—covering laptop/desktop CPUs and 3D gaming GPUs—saw revenue soar 69% YoY to $3.6 billion. Gaming revenue alone jumped 73% to $1.1 billion, far exceeding StreetAccount's $784 million forecast.
Notably, AMD expects Q3 2025 revenue of ~$8.7 billion (±$300 million), above analysts' $8.37 billion estimate. Q3 operating expenses are projected at ~$2.55 billion, also exceeding the $2.33 billion forecast.
AMD shares fell ~4% in after-hours trading due to missed profit expectations.
ICgoodFind: AMD's Q2 revenue-profit divergence reflects complex shifts in its business structure and market conditions, worth monitoring.
