Advanced Micro Devices, Inc. stock research
FY2025 Q2
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Jun 28, 2025
Revenue grew versus both the prior quarter and the same quarter last year, while gross profit was lower sequentially but higher year-over-year. Gross margin weakened compared to both periods because cost of revenue increased at a faster pace than revenue, outpacing the growth in gross profit.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Revenue grew versus both the prior quarter and the same quarter last year, while gross profit was lower sequentially but higher year-over-year. Gross margin weakened compared to both periods because cost of revenue increased at a faster pace than revenue, outpacing the growth in gross profit.
- Cost of revenue rose more sharply than revenue, compressing gross margin despite higher absolute gross profit year-over-year. The sequential decline in gross profit against rising revenue highlights that cost efficiency was the dominant factor shaping margin performance.
- Compared to the immediate prior quarter, gross margin was lower as cost of revenue increased while gross profit decreased. Versus the same quarter a year ago, gross margin was also lower, with revenue and gross profit both higher but cost of revenue increasing at a stronger rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.8%
Gross profit
$3.1B
Revenue
$7.7B
Cost of revenue
$4.6B
Quarter-over-quarter change
-10.4 pts
Year-over-year change
-9.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 28, 2024 | $6.8B | $3.4B | $3.4B | 50.1% |
| Dec 28, 2024 | $7.7B | $3.9B | $3.8B | 50.7% |
| Mar 29, 2025 | $7.4B | $3.7B | $3.7B | 50.2% |
| Jun 28, 2025 | $7.7B | $3.1B | $4.6B | 39.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
-10.4 pts
Year-over-year change
Jun 29, 2024
-9.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue rose more sharply than revenue, compressing gross margin despite higher absolute gross profit year-over-year. The sequential decline in gross profit against rising revenue highlights that cost efficiency was the dominant factor shaping margin performance.
Compared to the immediate prior quarter, gross margin was lower as cost of revenue increased while gross profit decreased. Versus the same quarter a year ago, gross margin was also lower, with revenue and gross profit both higher but cost of revenue increasing at a stronger rate.
Monitor the trajectory of cost of revenue relative to revenue, as its disproportionate growth directly compressed gross margin this quarter.