What you need to know
- AMD reported $4.3 billion in revenue during Q3 2021.
- The company saw an operating income of $948 million during the quarter.
- AMD set several records, including Q3 2021 bringing in the most revenue in any single quarter for the company.
AMD announced its Q3 2021 earnings this week. The tech giant saw significant growth across the board, including setting several records. AMD's revenue of $4.3 billion in Q3 2021 is the best third quarter and best overall quarter ever for the company. AMD's Q3 2021 revenue is 54% higher than Q3 2020 ($2.8 billion), which was a record at the time.
"AMD had another record quarter as revenue grew 54% and operating income doubled year-over-year," said AMD president and CEO Dr. Lisa Su. "3rd Gen EPYC processor shipments ramped significantly in the quarter as our data center sales more than doubled year-over-year. Our business significantly accelerated in 2021, growing faster than the market based on our leadership products and consistent execution."
Here's a breakdown of AMD's financial results:
| Metric | Q3 2021 | Q3 2020 | Y/Y | Q2 2021 | Q/Q |
|---|---|---|---|---|---|
| Revenue ($M) | $4,313 | $2,801 | Up 54% | $3,850 | Up 12% |
| Gross profit ($M) | $2,086 | $1,230 | Up 70% | $1,830 | Up 14% |
| Gross margin % | 48% | 44% | Up 450 bps | 48% | Up 80 bps |
| Operating expenses ($M) | $1,141 | $781 | Up 46% | $1,000 | Up 14% |
| Operating income ($M) | $948 | $449 | Up 111% | $831 | Up 14% |
| Operating margin % | 22% | 16% | Up 6pp | 22% | Flat |
| Net income ($M) | $923 | $390 | Up 137% | $710 | Up 30% |
| Earnings per share | $0.75 | $0.32 | Up 134% | $0.58 | Up 29% |
Profitability grew at a higher rate than revenue for AMD. The company saw a net income of $923 million, which is a 137% increase over the same quarter in 2020.
AMD's Computing and Graphics sector brought in $2.4 billion in revenue in the quarter. That area includes desktop and notebook CPU sales and GPU sales. That marks a 44% increase over Q2 2021. The segment's operating income went up as well from $384 million to $513 million year-over-year.
Here are AMD's figures for the Computing and Graphics segment:
| Metric | Q3 2021 | Q3 2020 | Q2 2021 |
|---|---|---|---|
| Revenue ($M) | $2,398 | $1,667 | $2,250 |
| Operating income ($M) | $513 | $384 | $526 |
The Enterprise, Embedded, and Semi-Custom segment of AMD also saw growth:
| Metric | Q3 2021 | Q3 2020 | Q2 2021 |
|---|---|---|---|
| Revenue ($M) | $1,915 | $1,134 | $1,600 |
| Operating income ($M) | $542 | $141 | $398 |
Q3 2021 is the sixth straight quarter of record server processor revenue for AMD.
