The short version
- AMD's gaming revenue fell 40% year on year to $773 million (about ₹7,340 crore) in the July to September quarter, mostly because it's selling fewer custom chips for the PS5 and Xbox.
- Client revenue, which is Ryzen chips for PCs and laptops, rose 7% to $2.9 billion. But AMD says PC sales slowed late in the quarter as higher memory costs pushed up prices.
- The company's total revenue hit a record $13.4 billion (about ₹1.27 lakh crore), up 45%, almost entirely thanks to AI data centre chips.
- For next year, AMD is planning on PC shipments falling by a double-digit percentage in 2027.
The numbers
AMD reported its third-quarter results on November 3, 2026, for the quarter that ended on September 26. Here's how each part of the business did:
| Segment | What it sells | Q3 2026 revenue | Change vs Q3 2025 |
|---|---|---|---|
| Data Center | EPYC server CPUs, Instinct AI GPUs | $8.5 billion | +97% |
| Client | Ryzen desktop and laptop CPUs | $2.9 billion | +7% |
| Gaming | Console chips, Radeon graphics cards | $773 million | -40% |
| Embedded | Chips for cars, factories, networking | $1.1 billion | +29% |
| Total | $13.4 billion | +45% |
Non-GAAP earnings per share came in at $2.09, against $1.20 a year ago. Gross margin was 56% on that adjusted basis.
Image: Zerocade
Why gaming fell so far
AMD's gaming segment is mostly two things: the semi-custom chips inside the PS5, PS5 Pro and Xbox Series X|S, and Radeon graphics cards for PCs. Both were down.
CEO Lisa Su said gaming revenue fell "primarily due to lower semi-custom sales as expected at this stage of the console cycle." In other words, the PS5 and Xbox Series consoles are six years old, fewer of them are being built, and so Sony and Microsoft are ordering fewer chips. We explain how that rise-and-fall pattern works in our console cycle explainer.
The comparison is also tough. A year ago, AMD's gaming revenue was about $1.3 billion, up 181%, helped by strong console chip orders and the launch of the Radeon RX 9000 cards. That makes this year's drop look steeper.
Radeon graphics revenue was down year on year too. AMD did say that Radeon GPU sell-through, meaning cards actually bought from shops, went up compared with the previous quarter. That fits with reports we covered last week that Radeon RX 9000 cards may get pricier as memory costs climb.
Image: Sony Interactive Entertainment
Memory prices are now slowing PC sales
The more worrying line for PC gamers is about Ryzen. Client revenue still grew, led by Ryzen laptop chips, but it fell 4% from the previous quarter. AMD said PC sell-through slowed late in the quarter as higher memory and component costs weighed on demand.
Su was blunt about why. When component prices go up, she said, it affects overall system pricing, and consumers are more sensitive to that. AMD has "seen a bit of slowdown in the sell-through."
That's the DRAM shortage showing up in a chipmaker's results. AI servers are soaking up memory supply, so the RAM and SSDs in a gaming PC or laptop cost more. A pricier laptop sells fewer units, even if the processor inside costs the same.
AMD's planning assumption for 2027 is that PC unit shipments will fall by a double-digit percentage. That's AMD's planning figure, not a market forecast from an analyst firm, but it's a strong signal coming from one of the two big PC chipmakers.
What AMD expects next
For the October to December quarter, AMD expects revenue of about $17 billion, plus or minus 3%. That would be up about 66% on a year earlier.
Almost all of that growth is coming from data centres: AMD expects that segment to rise by about 50% from this quarter. Client and gaming together are expected to fall by more than 20% from this quarter, which is unusual going into the holiday season.
Looking further out, AMD says it expects revenue to grow by more than 80% in 2027, with data centre making up more than 80% of the total.
What it means if you game
On paper, there are three takeaways.
First, the console generation is winding down. A 40% fall in console chip revenue fits the reports of a PS6 reveal in early 2027, and both Sony's and Microsoft's next consoles are expected to use AMD chips again. That's when this line should climb back.
Second, PC hardware prices aren't easing soon. AMD itself is planning for fewer PCs to sell next year, and it points at memory costs as the reason.
Third, gaming is now a small slice of AMD. It made less than 6% of revenue this quarter, while data centre made about 64%. That doesn't mean AMD is leaving gaming, but it does show where the company's money and attention are going.
AMD usually reports its next results in early February. Watch the gaming line for the first sign of PS6 and next-Xbox chip orders.
